Upcycled Products Gain Ground
The market for products made from food waste is expected to hit $83.2 billion by 2032, said Amanda Oenbring, CEO of Upcycled Food Association, citing research from Future Market Insights. She presented on the segment’s potential during a Summer Fancy Food Show session on the Big Idea Stage titled “Upcycling: Market Growth, Movement, and Future Trends.”
The presentation took place during UFA's Upcycled Food Month (June 1-30), a time dedicated to the education of the positive impact that can come from upcycling foods, a process wherein used or discarded food byproducts can reenter the food supply chain, and are therefore diverted from landfills.
“There is a market opportunity here. There is so much labor and water and love that goes into the food that we make that can be alchemized into new products and new evolutions of what we’re already handling,” said Oenbring.
Oenbring explained that consumers’ growing interest in sustainability speaks to the segment’s market potential. She cited data from Nielsen that found that products with a higher degree of sustainability-related claims enjoy higher brand loyalty. Additionally, Nielsen found that products with more claims grew twice as fast as those with only one claim, and that claims across animal welfare, environmental sustainability, social responsibility, and sustainable packaging are linked to accelerated growth.
“So, what does this equal at the store shelf? The volume of upcycled product sales is growing. We’re really seeing increased awareness both within general consumers and specialty, natural, and progressive shoppers,” said Oenbring, citing a survey from New Hope Network NEXT Data and Insights that found that 60 percent of natural channel shoppers and 39 percent of total consumers are willing to pay more for upcycled products.
Oenbring explained that upcycled foods provide a win-win for both companies and consumers by reducing costs for companies with cheaper upfront costs from often lower-priced ingredients as well as reduced costs associated with discarding products, increasing access to nutrients from food byproducts like cacao pods or fruit peels, and overall reduction in food waste.
When it comes to the future of upcycling, Oenbring explained that the industry is full of innovation.
“We are seeing a lot of interest and growth with upcycled ingredients, specifically, and the interest goes even beyond food. There are very creative implications of how upcycled can come from life,” she said.
One timely food-related application can be seen from Voyage Foods, which created a chocolate substitute made without cocoa. While making use of food byproducts, the company is also providing a solution to rising cocoa prices that have been driven by inclement weather, plant-related diseases, and other external factors.