During the manufacturing phase of the supply chain, 20–40% of food is wasted. There are two types of food waste: unavoidable and avoidable. The latter can be used in a variety of ways to lower the amount of waste produced by the food industry. To address these challenges, the food industry has dramatically increased its use of upcycled materials. Food technology advancements and growing awareness of the environmental effects of food waste are the driving forces behind this trend. It represents a shift in perspective, with waste being viewed as a resource opportunity rather than a disposal problem.
Several companies are at the forefront of incorporating circular economy principles into their food production by creatively reusing food waste.
Arla Foods Ingredients has introduced a new beverage made from upcycled acid whey, a byproduct of dairy processing. This fermented beverage contains up to 8% protein, sourced from Nutrilac whey proteins, giving it a light and refreshing texture. The company is also developing new solutions for upcycling acid whey into other nutritious dairy products, which will be unveiled later this year.
Fazer has launched a new vegan product called Oat Choco Toffee Hearts. These are made with upcycled ingredients, including okara, a by-product from oat drink production, and leftover Karl Fazer Oat Choco tablets. The product’s packaging, which is recyclable and composed of biodegradable materials, complements Fazer’s objective of removing palm oil from its confectionery and biscuit products by 2026.
The Finnish food tech startup Hailia has created a method that turns by-products of the fish industry into high-quality food items. By capturing and using almost all of the fish’s edible parts—which were previously underutilized—the method creates products that have a texture similar to cooked fish fillets.
FoodValley (Netherlands) is supporting the trend by introducing the Upcycled4food initiative. The initiative aims to encourage producers, supermarkets, and food services to utilize upcycled products in their manufacturing. The company is leading the way in promoting a circular agrifood system via meaningful collaboration across the value chain.
REDUCED, a company that uses agricultural waste in natural food ingredients, has received €6 million in funding. Their technology reduces CO2 emissions, minimizes food waste, and creates cost-effective, sustainable products like organic chicken stock and vegetable concentrates. The company plans to use the funds to improve technology and expand its product range.
Greenfood, a Swedish health food company, and Tekinn, a biotech company, have joined forces to work on a project funded by Region Skåne and the EU. The project involves experimenting with fermentation and bacteria to turn waste materials, like fruit and vegetable peels, into useful raw materials. These leftover parts are transformed into new, edible materials by Tekinn’s special fermentation process, which improves their flavor and texture in addition to making them more nutritious.
Upcycling of raw materials in food production is not merely a trend but a strategic shift toward resource efficiency and waste reduction. The ongoing advancements in food technology imply a possible surge in innovative processes and solutions that further enhance the value of by-products. By maximizing the use of agricultural commodities and minimizing waste, upcycling contributes to a more sustainable food system and supports a circular economy.
