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Growth Opportunities in Upcycled Ingredients Anticipated Through 2032

Worldwide consumption of upcycled ingredients is projected to increase 6.4% over the 2022-2032 period.

The global upcycled ingredients market is estimated to be valued at $ 275.3 million in 2022 after having registered year-over-year (YoY) growth of 5.9%.

Worldwide consumption of upcycled ingredients is projected to increase at a CAGR of 6.4% over the 2022-2032 period, with the US accounting for more than a 60% increase in its market share, per Fact MR. Roughly 30% of the food produced in the world is discarded. This is not only wasteful, but not sustainable for the planet, analysts say. Many multinational corporations are working to offset this issue and have plans to leverage this latent opportunity.

Challenges Faced by Upcycled Ingredient Suppliers

Lack of oversight about raw material sourcing as well as its way of use can be deceiving to customers if the ingredients are repurposed to make food products without adhering to government guidelines, per Fact MR.

Additionally, food products made from upcycled ingredients may be of low quality and lack nutrients as compared to fresh food. They can also be used as fillers rather than by-products, which can affect consumers’ health. Upcycled ingredients used for food may be more acceptable to consumers if it is viewed as a resource rather than waste.

Need to Curb Global High Food Wastage ‘Urgent’

Rising social awareness regarding the negative impact of severe food wastage across the globe is drawing attention to upcycled ingredients among the global population.

According to the Food and Agriculture Organization FAO, around 1.3 billion tons of food is wasted per year globally, with a valuation of $ 2.6 trillion. This food waste demonstrates a harmful impact on the environment as it is accountable for 6% of global greenhouse gas emissions. Replicating the social involvement of these worrying environmental issues, consumers are progressively insisting on speeding up action regarding food product disposal, such as food upcycling. This factor is anticipated to upsurge the claim for upcycled products, which reinforces the demand for upcycled ingredients and food waste recycling machines.

Competitive Landscape

Key manufacturers of upcycled ingredients are trying to fetch raw materials to bring innovative certified upcycled ingredients into the market. Many manufacturers collect raw materials from previous manufacturing processes to bring in upcycled ingredients. Per regulations, upcycled ingredients can be supplied to the B2B sales channel, and therefore, manufacturers need to build their relations with other upcycled product manufacturers, analysts admonish.

Moreover, some manufacturers are involved in inorganic growth tactics such as partnerships to acquire a larger consumer base and higher profit margins. For instance, in March 2022, SunOpta, a key manufacturer of upcycled ingredients, received the Upcycled Ingredient Certified standard from the Upcycled Food Association for the product OatGold.

In January 2022, ReGrained entered a partnership with Purotos to offer an upcycled solution for the commercial baking industry.

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