Upcycled ingredients hold potential to transform sustainable food systems

Global consumers increasingly demand more environmentally conscious F&B products amid growing climate change and biodiversity concerns. The upcycling of agricultural waste has become a crucial avenue for more sustainable food systems and one that leading food ingredient suppliers believe will continue to thrive with growing private and public support.

The Ellen MacArthur Foundation has identified upcycling — circulating materials at their highest value for as long as possible — as a core principle of the circular economy.

Innova Market Insights data suggests steep growth in F&B launches with upcycled ingredients, featuring a 47% average annual growth between April 2019 and March 2024. The top three categories for launches with upcycled ingredients were bakery, snacks and cereals.

Although upcycling in the F&B industry has gained traction, it is not a new idea. More than 75 years ago, CP Kelco introduced Genu Pectin from upcycled citrus peels — a byproduct of the juice industry. The product is now a widely recognized label-friendly gelling agent, thickener, viscosity builder and stabilizer for jams and jellies, dairy products, beverages, desserts and fruit applications.

In 2019, CP Kelco introduced Nutrava Citrus Fiber — the market’s first Upcycled Certified citrus fiber ingredient. The product addresses formulators’ needs for an easily recognizable ingredient to support dietary fiber intake while also providing unique water-binding, texturizing and stabilization capabilities. It can be used as an alternative to sugar or oil in many recipes and to reduce the use of starch.

“Upcycling utilizes food that would not have been consumed. It captures the value that was not tapped, leveraging the nutrients that would have been missed but also the resources used to produce the food, helping farmers get more out of their land and efforts without putting extra pressure on the environment,” Eric Reynolds, VP for Sustainability and Right to Operate at CP Kelco, tells Food Ingredients First.

Sidestreams from the company’s production are used to benefit the communities near its facilities through fertigation (fertilizer and irrigation) for farms and animal feed for over 30,000 animals per year. Surplus heat also provides energy for nearby homes.

Scalability potential

According to the Upcycled Food Association, 30% of all food produced globally is currently lost or wasted. For dsm-firmenich, this high level of waste would suggest that upcycled ingredients are primed to become big business and create a new wave of commercial opportunities.

“The market potential for upcycled ingredients is significant, with projections estimating it could reach US$94.6 billion by 2032. Manufacturers are already demonstrating scalability — for instance, our patented technology efficiently produces high-quality canola protein at scale,” Fatima Zoundri, director of Sustainability, Taste, Texture and Health at dsm-firmenich, tells us.Citrus peel byproduct remaining from CP Kelco’s production process is upcycled as Braspolpa animal feed and delivered to neighboring farms.

Vertis CanolaPro is a plant protein isolate derived from canola meal — a byproduct of canola or rapeseed oil production. Until now, the byproduct of canola oil production has been used as animal feed, but the company’s extraction technique transforms it into a high-value protein suitable for human consumption.

International Flavors & Fragrances (IFF) operates on the basis that several key success factors must be applied to ensure the full scalability of upcycling food waste. Notably, there must be compounds that can be converted to generate value, and consistency in the quality and volume of the sidestream to ensure food safety. Also, there should be proximity to the next processing unit to reduce transport costs and environmental footprint and deliver economic and environmental competitiveness.

IFF’s upcycled ingredients include its LMR Upcycling Collection of flavoring extracts: upcycled essential orange oil extracted from discarded peels by IFF partner Peel Pioneers, upcycled cacao fruit inclusions from Taura by IFF, Powderpure’s Uncommon Harvest, a collection of upcycled powders derived from food loss streams at farms and Guardian Aquarox upcycled rosemary extract, derived from the sidestream of traditional rosemary extraction.

The company is committed to demonstrating the value of its upcycled ingredients through creative product concepts.

“Our Re-Imagine Waste Product Design Team recently launched two concepts — a soft drink and energy shot — illustrating how upcycled materials can be used in beverages that appeal to eco-conscious consumers. They use upcycled raw materials from coffee cherries and grape juice from surplus fruit, enriched with our upcycled flavoring extracts,” Signe Causse, innovation marketing leader for Re-Imagine Wellness at IFF, tells us.

“Similarly, we’ve designed two concepts — a BBQ sauce and harissa mayonnaise blend — to inspire creative product ideation with upcycled ingredients in the culinary space. They offer a twist on classic condiment sauces by repurposing surplus tomatoes and bell peppers, enhanced with our upcycled flavoring extracts.”

Consumer understanding

The Upcycled Food Association indicates that 60% of people are interested in buying more upcycled food products, and 95% want to contribute to reducing food waste.

Compared to other sustainability concerns and solutions, upcycling is a relatively simple concept to explain to consumers and, therefore, generates positive reactions, says Reynolds at CP Kelco: “They understand the food waste problem and appreciate concrete ways to help reduce it, and appreciate the value of using nature-based food ingredients.”Residual water from CP Kelco’s citrus production process is used as fertigation for fields.

However, Zoundri at dsm-firmenich reminds us that upcycled ingredients are still a niche market, and raising awareness about the existence and benefits of upcycled F&B products is an ongoing challenge.

“But upcycled ingredients hold significant potential due to their strong sustainability credentials and appealing ‘uniqueness’ in a crowded market,” she adds. “As more brands and organizations get on board with upcycling, the cost of food products will decrease, making them more affordable, accessible, attractive — and ultimately valuable — to consumers.”

In North America, the introduction of the Upcycled Certification Scheme, created by the Upcycled Food Association, has helped increase awareness and credibility for upcycling across the food value chain.

IFF is an associate member with multiple ingredients verified according to the Upcycled Certified Standard. Likewise, dsm-firmenich’s Vertis CanolaPro is now Upcycled Certified.

Investment expected

Leading food ingredient companies expect demand for upcycled food to grow as consumers gain a greater understanding of the environmental impact of different dietary choices. The rising demand will encourage investment in advanced sidestream processing technologies.

“Upcycled ingredients are poised to drive significant innovation for established brands, given their production capabilities and corporate objectives. By substituting traditional ingredients with more sustainable upcycled variants, well-known companies can enhance their environmental footprint while offering novel products or more sustainable variants to consumers,” says Zoundri.Upcycling is an easy concept for the increasingly eco-conscious consumer to grasp.

“Additionally, public sector involvement will be crucial in this transition. Policies and regulatory support from governmental bodies can help encourage the production of sustainable foods, providing both incentives and frameworks for the industry to thrive.”

The expected scarcity and price increases of raw materials will also likely drive investment in the upcycling of food waste.

“Upcycling is set to become a mainstream practice, contributing significantly to sustainability and waste reduction efforts,” says Causse.

“However, that’s only part of the equation — we also have to ensure that products made with upcycled ingredients look and taste as appealing as possible to consumers.”

By Joshua Poole