The Demand for Upcycled Ingredients is Booming! But Barriers to Adoption Remain
By: Ema Kosova, 29-10-2024
In the vibrant world of food innovation, upcycled ingredients are taking centre stage. As sustainability becomes a priority for consumers and businesses alike, the food industry is embracing the concept of upcycling: transforming food by-products and surplus into delicious, high-quality ingredients.
This positive shift not only helps reduce waste but also champions creativity in culinary applications. However, while the promise of upcycled ingredients is bright, there are still some bumps on the road to widespread adoption. Let's take a closer look.
Addressing Concerns about Quality
Despite the exciting potential of upcycled foods, some consumers and food manufacturers still grapple with concerns about quality, standards, and food safety. There’s a natural apprehension about whether these ingredients will consistently meet the taste, texture, and nutritional needs that diners crave.
To tackle this, the industry is actively working with robust quality assurance processes that will pave the way for greater confidence in upcycled products. For instance, companies like Agrain by Circular Food Technology are upcycling spent grain from breweries (BSG) into nutritious ingredients and snacks, providing a source of fibre, protein and essential minerals. Agrain guarantees quality by following established industry standards, conducting regular quality control tests, and obtaining secure, recognised certifications regarding food safety and sustainability. Moreover, communicating nutritional and functional benefits highlights how upcycled ingredients meet or exceed conventional ingredient standards.
Pricing is a Normal Challenge of New Technology
Price points for upcycled ingredients can be a major hurdle, as their prices often land higher than for conventional counterparts. This is an all-too-familiar story in the tech world - think back to the early adoption phase of renewable energy solutions like solar and wind power. Initially, these innovations come at a premium, but as they mature, the prices trend downward.
It has been estimated that the upcycled food products market size could reach $97 billion by 2031 as production costs decrease and consumer demand rises. With increasing supply and improved processes, we’re already seeing signs that prices will level out, making these fantastic ingredients more accessible to everyone. At Agrain by Circular Food Technology we have been able to gradually lower our prices over the last 4 years, simply because we are becoming better at doing what we do and our production scale is growing.
Must-Win Battles for Upcycled Food Companies
As the upcycling movement gains momentum, companies face critical challenges that they must address to thrive in this evolving market. Some 'must-win' battles include:
- Consumer Education: Building awareness about the benefits and uses of upcycled ingredients is essential. Companies must educate consumers on not just sustainability, but also on the quality, flavour profiles, and nutritional advantages of upcycled products to convince them to make the switch.
- Consistency in Quality : Establishing rigorous quality control protocols is crucial for gaining trust. Companies should invest in research and development to ensure their products maintain high standards, from sourcing to final product, as well as prioritising international food standards, like the IFS or BRCGS.
- Scaling Production: Efficiently scaling up production is imperative and a significant financial challenge. Companies need to invest in innovative processing technologies and streamline supply chains to meet growing demand.
- Building Partnerships: Collaboration with local food manufacturers and logistics providers can create a more robust ecosystem for upcycling. Strategic partnerships will help in sourcing raw materials efficiently and creating a stronger market presence.
- Regulatory Compliance: Advocating for positive regulation is key to fostering the growth of the upcycling industry. By working together with regulatory bodies, industry leaders can drive the development of clear guidelines that support innovation while ensuring food safety and transparency. Unified global standards will not only streamline market entry for upcycled products but also help consumers make informed choices, ultimately promoting the benefits of upcycling on a broader scale.
An Upcycling Revolution Awaits...
The food industry is on the brink of an exciting movement. If concerns around quality, standards and pricing are addressed, upcycled ingredients could - and should - become a staple in our diets, transforming our menus and also the very foundation of how we think about food sustainability.
Leaders such as the Ellen MacArthur Foundation are championing this cause, promoting collaboration and innovation on a global scale. Meanwhile, the Upcycled Food Association and Where Food Comes From, Inc. are driving efforts to certify upcycled products, helping consumers and manufacturers make informed choices.
And there is no doubt that innovators in upcycled food products are becoming ever-more present. Together, these front-runners are shaping a future where upcycled ingredients are celebrated for their taste, nutrition, and environmental benefits.
Join the Upcycled Food Movement!
With the abundance of food loss and waste, the growth of the upcycled ingredients market is certainly not limited by supply. Rather, it is crucial that everyone in the industry embraces sidestreams and by-products as the valuable resources that they are. Together, we can address concerns and build trust while unlocking the full potential of upcycled solutions.
Let’s inspire a culinary revolution that benefits both our taste buds and our planet!