Upcycled ingredients offer food manufacturers an opportunity to reduce waste

Upcycled ingredients – in other words, reusing surplus ingredients that would otherwise go to waste – offer food manufacturers an opportunity to reduce waste, improve efficiency and develop new added-value streams, according to a new report by GlobalData.

Upcycled ingredients – in other words, reusing surplus ingredients that would otherwise go to waste – offer food manufacturers an opportunity to reduce waste, improve efficiency and develop new added-value streams, according to a new report by GlobalData.

As GlobalData noted, upcycling is gaining momentum among food manufacturers given increased cost pressures and growing scrutiny over waste across supply chains.

As the 2025 Q3 global consumer survey undertaken by GlobalData found, half (50%) of consumers said that sustainably-sourced products ‘always’ influenced their purchasing decisions.

Sustainable food options

“As consumers become more aware of the supply chain and food waste, demand for sustainable and environmentally friendly food options is on the rise,” commented Molly Day, consumer analyst at GlobalData.

“As such, food upcycling may offer an opportunity for manufacturers to economise, reduce waste, and attract eco-conscious consumers, particularly when it is positioned at an accessible price point.”

As GlobalData, citing figures from the UN Food and Agriculture Organization (FAO), noted, food waste contributes between 8% and 10% of global greenhouse gas emissions, as well as costing the global economy around $1 trillion annually.

Leading examples

The research firm pointed to two operators that are already pursuing ‘rescue’ food models as upcycling gains traction – Misfits Market in the US, which sells surplus and imperfect fruit and vegetables through a subscription service, and UK-based Oddbox, which focuses on selling rescued fruit, vegetables and short shelf-life products at discounted prices.

SustainabilityOnline recently spoke to Emilie Vanpoperinghe, co-founder and CEO of Oddbox – you can find that interview here.

Spending habits

Elsewhere, GlobalData’s most recent (Q1 2026) consumer survey found that a quarter (25%) of consumers said they were spending more on groceries because of rising food prices, while over a firth (22%) said they had reduced spending in a bid to save money.fwas

“Rising awareness of the environmental and economic cost of food waste is creating clear momentum for upcycled foods,” Day added. “However, sustainability alone is unlikely to secure long-term growth while consumers remain under financial pressure. To ensure long-term growth and build a loyal consumer base, brands will need to keep upcycled options affordable.” Read more here.

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