Raisio launches grain side stream upcycling project for fiber ingredients

Raisio has secured €1.8 million (US$2 million) in funding from Business Finland for a four-year project focused on developing functional fiber ingredients from grain processing side streams. Combined with the company’s own €2.7 million (US$3.1 million) investment, the initiative represents a €4.5 million (US$5.2 million) commitment to advancing fiber innovation and improving resource efficiency within grain processing.

The move comes as food manufacturers seek ingredients that can deliver health benefits alongside formulation functionality, to keep pace with consumer demand for fiber-rich ingredients amid a growing interest in gut health, weight management, and sustainable food production.

Turning side streams into value

Across the F&B industry, manufacturers are increasingly exploring ways to extract greater value from existing raw materials. Rather than treating processing by-products as waste streams, companies are seeking opportunities to convert them into commercially viable ingredients.

Raisio’s project reflects this trend, focusing on technologies capable of transforming grain side streams into fiber ingredients suitable for future food applications.

The project is part of the international Global Center for Sustainable Bioproducts network, which brings together leading universities, research institutes, and industrial partners from Europe, North America, and Asia to accelerate the transition toward a sustainable bioeconomy based on renewable resources.

Upcycling as the project’s core

Raisio’s project, Valorization of Grain Sidestreams for Functional Fibers, aims to develop future healthy food solutions by creating fiber ingredients with strong nutritional and technological benefits, while improving the resource efficiency of grain processing.

The project will advance side stream valorization by scaling technologies at the company’s new pilot plant in Raisionkaari, Finland, and validating commercial applications and market potential for the new ingredients.

Reetta Andolin, chief innovation officer at Raisio, tells Food Ingredients First that the grain side streams with the biggest potential for future food applications are those that have a high quantity and stable material flow, and a high quantity of fibers and proteins. 

“This includes hulls and other outer layers of the grains,” she says.

“We have had highly nutritious ingredients for years in the market, but their technological properties and utilization are usually narrow.” 

Andolin emphasizes that the project will unlock greater value from high-volume side streams by converting them into functional ingredients with validated applications, reducing reliance on raw materials sourced from environmentally, economically, or geopolitically vulnerable regions.

Addressing the “fiber gap”

One of the most compelling aspects of grain side streams is their potential to address a persistent nutritional gap, namely, insufficient fiber intake. While most nutrient deficiencies are relatively uncommon in Western diets, fiber remains an exception. At the same time, the health benefits of dietary fiber are well-established, supporting digestive health, metabolic health, and overall well-being.

Grain side streams are naturally rich in fiber and other valuable compounds, making them an attractive source of functional ingredients. By upcycling these underutilized resources, the food industry can simultaneously improve nutritional value, reduce waste, and create more sustainable ingredient solutions.

“Fiber is becoming one of the most important areas in future food innovation, and we see significant international potential in turning grain side streams into high-value ingredients. This supports both our sustainability targets and our ambition to build new business,” adds Andolin.

Åbo Akademi University coordinates the Finnish consortium and includes the University of Turku, Aalto University, and 13 industry partners.

Within the consortium, Raisio contributes strong expertise in turning grain-based side streams into healthy foods and food ingredients. The collaboration strengthens Raisio’s global innovation network and supports the company’s strategic intent to be a leading European innovator in fiber.

The project will begin in 2026 and continue until the end of 2029, supporting the long-term growth of Raisio’s New Business operations. 

The collaboration broadens Raisio’s global innovation reach and reinforces its position as a frontrunner in fiber innovation in Europe.