Upcycled Ingredients Gain Momentum

Retail adoption, certification growth and functional innovation continue to drive the upcycled ingredient category forward

IMAGE COURTESY OF: Where Food Comes From

The food industry has a strong history of finding valuable uses for food materials historically seen as byproducts. These days, we use the term “upcycled” when referring to ingredients that would otherwise go to waste but are still offer nutrition or functional value to a food or beverage formulation.

Common sources of upcycled ingredients include:

Fruit pulp left after juicing
Spent grain from brewing beer
Imperfect or surplus produce
Whey from cheese production
Coffee fruit pulp
Vegetable trimmings or peels

The goal is to reduce food waste and make better use of resources across the food system.

Prepared Foods recently reached out to Where Food Comes From to learn more about trends related to upcycled food ingredients, a trend that continues to show promise across the food and beverage industry.

“We continue to see strong momentum in the upcycled category, with natural retailers leading the way,” said C.J. Scott, manager, marketing and communications, Where Food Comes From. “SPINS data shows +16.6% year-over-year dollar growth in the natural channel, driven by a strong combination of velocity (+14.6%) and price (+14.7%).”

While the momentum is strong in the “natural” retail segment, mainstream adoption is still in its early stages. “Conventional retail, by comparison, is still early,” says Scott. “That gap represents a significant opportunity as the category moves into its next phase of growth.”

Natural Products Expo West is a great annual opportunity for trend-watching, and when it comes to upcycled ingredients, the event offered some great examples.

According to Scott, Expo West offered several upcycled takeaways:

More mainstream-ready products (not just niche or novelty)
Increased use of upcycled ingredients as functional inputs, not just a story
Stronger on-pack storytelling and certification visibility
“Upcycled” still remains a buzzword

(For additional insights into how the upcycled trend showed up at Expo West, see “Upcycled Innovation Gains Momentum.”)

Where Food Comes From offers third-party services related to hundreds of different claims, programs, and markets across the food and beverage industry, and its Upcycled Certified ingredient certification has continued at a steady pace. “We’re seeing continued growth in upcycled ingredient certifications, which is accelerating product innovation and making it easier for brands to enter the space with credibility,” said Scott. “That momentum is backed by measurable impact, with more than 6.36 million tons of food waste diverted since the program’s launch.”

At the same time, notes Scott, work related to upcycled food ingredient certification continues to focus on:

Expanding retailer and brand adoption
Strengthening consumer education
Building the infrastructure needed to support category-wide scale

Scott notes that the next phase of growth for upcycled ingredients will be defined by scale and accessibility:

Expanding into conventional retail, which remains largely untapped
Sustaining premium positioning while maintaining strong velocity
Driving deeper consumer awareness and repeat purchase behavior
Scaling ingredient innovation alongside certification adoption

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Douglas J. Peckenpaugh is Director of Content Strategy for Beverage Industry, Dairy Foods, FOOD ENGINEERING, The National Provisioner, Packaging Strategies, Flexible Packaging, Prepared Foods, Refrigerated & Frozen Foods, Snack Food & Wholesale Bakery, and Candy Industry at BNP Media. For over three decades, his work has followed the food industry from farm to fork, including concentrations in agriculture, ingredient processing, packaging and processing equipment, retail grocery branding, foodservice menu development, and food product R&D and manufacturing.