Upcycled Food Products Market Size, Share & Industry Analysis, By Source (Fruit & Vegetable Waste, Agriculture Waste, and Food Processing Waste), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online Sales Channels, and Others), and Regional Forecast, 2025-2032

The global upcycled food products market size was valued at USD 38.95 billion in 2024. The market is projected to grow from USD 41.71 billion in 2025 to USD 68.56 billion by 2032, exhibiting a CAGR of 7.36% during the forecast period. North America dominated the upcycled food products market with a market share of 55.84% in 2024.

Upcycled products can be defined as food items produced using waste, such as food scraps and by-products of food processing, which are normally discarded. The upcycling process aims to reduce food waste and use these leftover ingredients to create a valuable product. A few of the common by-products include fruit rinds, spent grains, and vegetable peels. Concerning consumption, the demand for upcycled food products is trending in North America, especially due to the rising need for eco-friendly solutions and improved consumer awareness of food waste. The Upcycled Food Association, a non-profit trade organization in the U.S. established in 2019, observed a registration of 236 products by August 2022, developed through waste across the U.S. and Canada. Examples of products created include crackers from brewers' spent grains, pasta made from wasted spaghetti squash, and others. 

Innovations in food upcycling techniques and increasing emphasis on sustainable practices promote the market growth.

Renewal Mill, Planetarians, Upcycled Foods Inc., and Matriark Foods are the key players operating in the market.

Global Upcycled Food Products Market Overview

Market Size & Forecast:

• 2024 Market Size: USD 38.95 billion
• 2025 Market Size: USD 41.71 billion
• 2032 Forecast Market Size: USD 68.56 billion
• CAGR: 7.36% from 2025–2032

Market Share:

• North America dominated the upcycled food products market with a 55.84% share in 2024, driven by rising consumer awareness of food waste, sustainability initiatives, and strong adoption of eco-friendly products across the U.S. and Canada.
• By source, fruit & vegetable waste held the largest share due to its wide availability and use in baked goods and confectionery. Among distribution channels, supermarkets/hypermarkets generated the highest revenue due to accessibility, bulk-purchase discounts, and diverse product offerings.

Key Country Highlights:

• United States: Growth is supported by consumer willingness to pay more for ethically sourced foods, coupled with retailer partnerships with upcycled food brands.
• Canada: Product launches, including drinkable yogurt and functional ingredients made from upcycled sources, are expanding market penetration.
• Europe: Stringent food waste regulations and consumer preference for sustainable products drive market growth, along with support for circular economy initiatives.
• Asia Pacific: The region is emerging as a fast-growing market due to rising awareness of food waste impacts, government regulations, and increasing prioritization of sustainability among younger, health-conscious consumers.

MARKET DYNAMICS

Market Drivers

Surging Food Waste Enhances Production of Upcycled Products

Food waste is recognized as a main global challenge with substantial economic, social, and environmental impacts. Nearly one-third of the food is lost/wasted annually, contributing to food insecurity, greenhouse gas emissions, and resource depletion. To address such challenges, the government is enforcing initiatives to limit food waste, influencing prominent manufacturers. These food producers utilize active components of by-products to develop valuable items. The upcycled ingredients used are nutritious and provide essential antioxidants, minerals, and fiber, which benefit consumers' health.

Augmented Demand for Sustainable Food Products Supports Market Growth

The rising demand for sustainably produced items is a key driver in the global upcycled products market. Most consumers are conscious of environmental concerns caused due to unethically sourced food and seek products that restrict waste production. Such demands make upcycled food an ideal option for the population. These ingredients are known to be healthy and aid in developing a sustainable alternative. As a result, the improved inclination toward eco-friendly products drives the market's potential.

Market Restraints

Limited Consumer Awareness and Inconsistent Supply of Upcycled Ingredients Impede Market Penetration

One of the crucial challenges faced by food manufacturers is the limited awareness of upcycled products. In the global market, most consumers are unaware or unfamiliar with the notion of upcycled items and may perceive such products as less desirable or inferior. As a result, this limited acceptability of upcycled edibles can impede the global upcycled food products market share.

Irregular supply of by-products is another hurdle in the global industry. The production of upcycled items mainly depends on leftover waste from food processing, which might differ in quality, availability, and quantity. Such variability can hinder the manufacturing process and the finished product's quality.

Market Opportunities

Technological Advancements in Upcycled Item Production Create Growth Opportunities

The utilization of advanced technologies in upcycled food production is focused on strengthening the efficiency and quality of products. One of the main technologies used to manufacture upcycled items is the pulsed electric field (PEF). This technique disrupts tissues and cell membranes to extract essential compounds from leftover food, such as pigments and bioactive compounds. Another technology that is becoming highly popular in this sector is microbe fermentation. In this method, microorganisms such as fungi and bacteria break down by-products of food to develop valuable components such as pigments, antioxidants, and others. Apart from this, extraction techniques, including supercritical carbon dioxide and solvent extraction, and enzymes, are also used for upcycled food production. Advancements in these technologies to optimize the cost will provide opportunities for the upcycled food products market growth.

Market Challenges

Lack of Standardized Regulations and Technology Impacts Industry's Potential

The lack of standardized guidelines is a prime difficulty experienced in the upcycled products industry. Such unregulated regulations make it challenging for food producers to adhere to the labels and regulations of end products. As a result, the above factors can disturb the growing potential of the market.

Constraints in advanced technology are also a notable obstacle in the global market. Upcycling mainly requires advanced and specialized technology, which might be expensive. Thus, this high-cost technology can restrict the scalability of upcycled food products.

UPCYCLED FOOD PRODUCTS MARKET TRENDS

Increasing Inclination Toward Upcycled Certification is Current Trend

The trend of upcycled certification is soaring at a higher pace, reflecting shifting individuals' priorities toward sustainable products. In today's health-conscious era, most consumers are aware of the adverse environmental impact of food waste and seek products that prioritize sustainability. To appeal to consumers, food processing companies are concentrating on introducing upcycled food products with their certificates. Compared to other certification programs, upcycled certification is considered the fastest-growing certification, which helps individuals choose products that utilize food waste ingredients. The "Where Food Comes From Inc.," a third-party food verification firm in the U.S., claims that 568 end products were upcycled certified in 2024, which shows a spike of 17% over the previous year, 2023.

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Impact of Tariffs

At the beginning of April 2025, U.S. President Donald Trump announced the news of imposing tariffs on all the end products imported by the U.S. With respect to the upcycled products market, the U.S. is recognized as a dominating consumer of upcycled food. As per the new tariff structure, the U.S. may impose taxes on the imports of upcycled ingredients. This high tariff can boost the price of overall upcycled products, creating hurdles at the supply chain level and for consumers to purchase the food at lower prices. Even though the Tariff Act is on hold for the next few months, it is still predicted to impact the global market substantially.

SEGMENTATION ANALYSIS

By Source

Fruit & Vegetable Waste Led Market Due to Its Wide Availability

On the basis of source, the market is segmented into fruit & vegetable waste, agriculture waste, and food processing waste. The fruit & vegetable waste segment dominated the market and held a remarkable market share in 2024. This category majorly comprises fruits and vegetables that are unfit for human consumption. To minimize the growing risk of food waste, the prominent players are utilizing such fruit & vegetable waste to produce baked goods and confectionery.

Food processing waste emerged as the fastest-growing category with a high CAGR. This segment includes by-products of food processing, such as meat trimmings and vegetable and fruit peels, which are further used for product innovation.

By Distribution Channel

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Supermarkets/Hypermarkets Lead Market Due to Their Easy Accessibility

Based on the distribution channel, the market is divided into supermarkets/hypermarkets, specialty stores, online sales channels, and others. Supermarkets/hypermarkets lead globally and generate the maximum share. This channel is recognized as a "one-stop shop" that provides a broad range of upcycled ingredient-based items in various pack sizes. Also, supermarkets are known for affordable prices and offer several discount coupons, particularly for bulk purchasing food products.

Online sales channels are expected to register a high CAGR during the forecast period. The ease of ordering products from home or workplace, and return/exchange benefits, bolster the segment's growth

Upcycled Food Products Market Regional Outlook

Based on region, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. 

North America

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North America is the leading region and captured a large chunk of share of the global upcycled products market. This growth is backed by well-established innovation infrastructure and robust sustainability policies. Moreover, the rising consumer's willingness to pay extra for ethically sourced products boosts upcycled food sales and expands the North American industry. Among all the North American countries, the U.S. dominated in the region, followed by Canada. The enhanced focus on partnerships between retailers (Kroger and Walmart) with upcycled food brands and the augmented consumer's willingness to try new ingredients-enriched chocolates fuel the region's market growth.

Asia Pacific

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Asia Pacific, the fastest-growing region, benefits from the escalated awareness of climate impacts by food waste and growing Government-led regulations on food security and waste management. Furthermore, advancements in upcycling technology and the expansion of prominent upcycled food brands in Asian countries drive product sales. Along with this, increasing prioritization of sustainability amongst younger groups and rising health-consciousness trends enhance the growth.

Europe

Europe is one of the active regions and holds a strong position in the upcycled food market. The growth is driven by several factors, such as stringent food waste laws and consumer inclination toward sustainable items. Moreover, the growing support for fair-trade and organic-certified food items and healthy snacking trends further fuels the demand for upcycled food products. In addition, the increasing involvement of food startups and circular economy mandates supports the growing regional momentum.

Rest of the World

The rest of the world is at its developing stage and is anticipated to maintain the same pace of growth. The increased awareness of environmentally friendly items and the growing number of health-conscious individuals stimulate the industry's potential. 

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Main Players Aim at Product Launches to Improve Profitability

Dominant players operating in the global space include Renewal Mill, Planetarians, Upcycled Foods Inc., and Matriark Foods, among others. All the key players are introducing innovative upcycled food products that cater to consumers' demands. Moreover, the firms are also focusing on partnerships/collaborations to strengthen profitability.

List of Key Upcycled Food Product Companies Profiled

• Matriark Foods (U.S.)
• Renewal Mill (U.S.)
• OISIX RA Daichi (Japan)
• Upcycled Foods Inc. (U.S.)
• ÄIO (Estonia)
• Rootly (Denmark)
• Pluck (Canada)
• Planetarians (U.S.)
• Green Bowl (U.S.)
• Maison Riviera (Canada)

KEY INDUSTRY DEVELOPMENTS

• March 2025: Upcycled Foods, Inc. (UP, Inc.) and Misfits Market launched the retailer's first upcycled bread types for its Odds & Ends private label. The company launched two Upcycled Certified breads featuring ReGrained SuperGrain+ and a mixture of sourdough from bakery ingredient leader Puratos.
• March 2025: Upcycled Foods, Inc. (UP, Inc.) announced the introduction of upcycled whole raisins from wine-grape varieties of California vineyards. The new product is a functional ingredient that improves texture and enhances flavor.
• February 2025: Maison Riviera, a Canada-based dairy company, launched Canada's first drinkable yogurt made from upcycled ingredients and certified UPcycled.
• June 2024: Foodvalley, one of the leading agro-food centers in Europe, launched the UPCycled4Food initiative to make upcycled food products and ingredients the 'new normal.'
• April 2022:  Del Monte Foods, Inc. announced that two of its products, Del Monte Gut Love and Boost Me Fruit Infusions, to be Upcycled Certified by the Upcycled Food Association.

REPORT COVERAGE

The market research report analyzes the market in-depth and highlights crucial aspects such as global market trends, market dynamics, and prominent companies. Besides this, the market report also provides insights into the global upcycled food products market trends and highlights significant industry developments.

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Report Scope & Segmentation