What’s Up With Upcycling?

by Eric Munson | April 1, 2026

The power of upcycled ingredients for sustainable natural products.

Upcycled ingredients are made from food surplus or underutilized parts of crops that would otherwise go to waste. These parts are transformed into valuable products that support sustainability while reclaiming nutrients often missing from modern diets, making them important for both people and the planet.

Hannah Ackermann, RDN, vice president of marketing & nutrition affairs at Comet Bio (Schaumburg, IL), said recycling refers to reusing waste materials whereas upcycling ups the value of waste materials to transform them into new products.

“For brands, incorporating Upcycled Certified ingredients into formulations can enable an Upcycled Certified mark on pack when those ingredients make up at least 10 percent of the final formulation. Certification matters because it verifies real environmental impact through trusted third-party standards, building credibility beyond marketing claims,” Ackermann explained.

According to Christina O’Keefe, head of sustainability, Kerry North America (Beloit, WI) upcycling reframes waste as resources, supporting a more circular food system.

“Their importance lies in addressing two critical industry challenges simultaneously: reducing food waste and strengthening supply resilience,” O’Keefe said. “As climate volatility and commodity pressures intensify, recovering value from existing inputs helps manufacturers unlock new functionality, nutrition and flavor while reducing environmental impact.”

“This approach reduces the environmental impact of ingredient production and supports a more circular system by maximizing the value of resources already grown and harvested. It also creates economic opportunities, turning what was once waste into a revenue-generating raw materials and helping drive additional income across the supply chain, particularly in rural communities,” added Norma Bisbal, ESG manager at Spain-based HealthTech Bioactives (HTBA).

Upcycling 101

According to Claus Bukbjerg Andersen, senior category manager at Denmark-based Arla Foods Ingredients, demand for upcycled products has emerged as a powerful trend in consumer behavior, providing a sustainable alternative to waste management and a creative approach to new product development.

“In the nutraceutical sector, [upcycling] means extracting bioactive molecules such as polyphenols, fibers and polysaccharides from plant residues, reducing waste and creating new value. This approach fully aligns with the principles of the circular economy,” said Tyler Ris, vice president of sales, North America at Italy-based Bioactive Natural Products (Bionap).

Jan Jongsma, CEO of Netherlands-based NutriLeads said upcycled ingredients help reduce food waste, lower environmental impact and improve overall resource efficiency.

“For the nutrition industry, upcycling aligns sustainability with science to deliver clinically validated health benefits while supporting a more circular food system and a healthier planet,” Jongsma said.

According to Maïté Jeanroy, marketing & communication director at Activ’Inside (France), winemaking1 generates significant volumes of byproducts, representing up to 30 percent of the original grape mass. This includes grape pomace, seeds, stalks, lees and wastewater. Grape pomace is now recognized as a valuable source of bioactive compounds due to its rich chemical composition.

“At Activ’Inside, we leverage French grape (Vitis vinifera) byproducts from the wine industry. These materials are naturally rich in polyphenols, which have been scientifically shown to support healthy aging, cognitive performance, skin health and overall wellness,” Jeanroy said. “Upcycling is important because it bridges sustainability and science. It reduces waste while unlocking bioactive potential from materials that already exist within the food chain.”

Sustainability and Supply

Upcycling is incredibly important for both sustainability and the supply chain.

Bisbal said by reducing food and agricultural waste, upcycling helps address emissions associated with the decomposition of organic materials, which release methane. Recovering materials that would otherwise be thrown out can contribute to a lower overall carbon footprint for food production.

“Upcycling supports sustainability by reducing waste streams and maximizing the value of existing agricultural outputs,” said Jacqueline Rizo, public relations lead at Stratum Nutrition (Carthage, MO). “It also creates a more stable and efficient supply chain since it builds on established production systems rather than requiring new land or inputs. That consistency is especially important today as brands look for reliable, responsible sourcing options that can scale.”

According to O’Keefe, beyond environmental gains, upcycling protects supply chains against geographic instability and climate disruption by “diversifying raw material inputs and maximizing the value of existing agricultural outputs.”

“For example, in certain applications, upcycled or fermentation‑based ingredients can reduce reliance on traditional cocoa by up to 50 percent during supply‑constrained periods,” O’Keefe explained. “Depending on formulation and life‑cycle boundaries, this can deliver significant carbon footprint reductions, as demonstrated in product‑specific assessments. When integrated into broader sustainability strategies, such as carbon footprint tracking and responsible sourcing, upcycling becomes a measurable lever for reducing costs, Scope 3 emissions and supporting circularity goals.”

Ackermann explained upcycling maximizes the use of resources that already exist. Instead of discarding the parts or food streams that are underutilized, it transforms them into valuable products.

“This allows farmers to capture more value from each harvest. Upcycling also reduces the need for land and water required to grow additional raw materials. The result is a more efficient, circular food system that maximizes output without increasing environmental burden,” Ackermann said.

“Upcycling helps maximize the value from the land, water, and crops already used to produce food,” Jongsma added. “It also strengthens supply resilience by leveraging established food-processing streams, reducing incremental agricultural demand and dependence on single-crop harvest volatility. This combination of environmental stewardship and supply continuity is increasingly important to consumers and global brands.”

Andersen said food waste is a significant global issue. Approximately a third of all food produced worldwide goes to waste including an estimated 30 to 40 percent of the United States’ entire food supply.2-3

“In the dairy industry, acid whey is a long-standing sustainability challenge. Two-thirds of the milk used to produce Greek yogurt, skyr, cottage cheese and other strained, fermented dairy products ends up as waste, with acid whey being the main side-stream,” Andersen said. “With the high-protein trend driving demand for these products, increased volumes of acid whey are being generated, and disposal is both expensive and associated with environmental risk.”

According to Jeanroy, global food waste remains “shockingly high” with roughly one-third of all food produced each year never getting eaten—around 1.6 billion tons of waste and massive environmental strain. This lost food drives unnecessary land use, water consumption and greenhouse gas emissions.4

In 2024, the Upcycled Certified program—the world’s largest third-party upcycling standard—grew to 105 participating companies and nearly 570 certified products, collectively diverting approximately 1.2 million tons of food waste that year—equivalent to 248 million grocery bags worth of waste kept out of landfills.5

“So, upcycling isn’t just ‘nice for sustainability’—it’s a measurable way to cut waste, unlock new supply, and make our food systems more resilient and efficient,” Jeanroy explained.

According to Ris, recovering agricultural waste means reducing the pressure on the extraction of new resources. From a supply chain standpoint, upcycling strengthens resilience—enhancing the value of local byproducts can short the supply chain, reduce logistical impact and improve traceability.

“Moreover, upcycling and the circular economy foster technological and collaborative innovation along the value chain: farmers, ingredient manufacturers, and brand owners can develop partnerships to create new value streams from materials that were previously considered waste,” Ris said.

Upcycled Ingredients

Many ingredient and raw material companies have been creating upcycled ingredients to benefit the dietary supplement industry.

Comet’s Arrabina is an Upcycled Certified naturally diverse dietary fiber made from arabinoxylan, a beneficial component found in leftover wheat crops that would other go unused. It is a prebiotic fiber that delivers proven health benefits and allow food manufacturers to improve nutritional value across a variety of applications.

“Using our proprietary upcycling technology, we extract arabinoxylan from the crop leftovers through a process that uses only water, steam, and gentle filtering. This method is designed for low environmental impact, powered by biomass CHP for steam, wind energy for power, and low water use,” Ackermann explained.

Bionap bases its business model on a circular economy and sees it as an opportunity to inspire people, leadership and product innovations. One concrete example can be found in the prickly pear (Opuntia ficus-indica) where attention is mainly focused on the fruits.

“The cladodes result from pruning operations are by-products of agro-industrial processing. These are recovered and regenerated, and through pressing processes a valuable juice rich in polysaccharides are obtained,” Ris explained. “This juice becomes the co-product at the core of the transformation processes used to develop our ingredients, Odilia and Mucosave that are utilized for digestive and gut health.”

Benicaros from NutriLeads is a precision prebiotic derived from upcycled carrot pomace, the fiber-rich portion that remains after juicing.

“Sourced through verifiable supply chains, NutriLeads uses a proprietary, water-based process to isolate and standardize a specific pectin polysaccharide structure—rhamnogalacturonan-I (RG-I)—ensuring consistency and functionality. The result is a highly concentrated, low-dose ingredient clinically shown to support both gut and immune health,” Jongsma explained.

Kerry approaches upcycling through a science-led framework that prioritizes safety, quality and functionality. Upcycled materials are processed using validated technologies such as advanced extraction and fermentation to capture premium taste molecules and create stable, application-ready ingredients such as JuiceXcel and Sustainable Citrus Extenders.

Stratum’s eggshell membrane collagen ingredients, NEM and Ovolux, start with the thin membrane inside eggshells. For decades, this part of the eggs was thrown away despite being naturally rich in collagen, glycosaminoglycans and other bioactive compounds to support joint health and skin vitality.

HTBA’s citrus flavonoids for taste modulation and functional health applications are extracted from immature, unripe fruitlets that naturally fall from citrus—mainly orange and grapefruit trees during the growing cycle.

“This natural thinning process allows the remaining fruit to fully mature, while the dropped fruitlets would typically be left to decompose in fields or be sent to landfill. Instead, we collect and sun-dry these fruitlets before extracting their naturally high flavonoid content,” Bisbal said. “Following flavonoid extraction, the remaining organic material is fully repurposed; it is either used as biofuel to generate energy for a waste treatment plant or returned to the soil as compost. This creates a closed-loop system, transforming field waste into high-value ingredients, renewable energy and soil nutrients.”

Arla’s new “Upcycle Your Whey to Value” concept demonstrates how manufacturers can turn acid whey into high-protein dairy products with an upcycled positioning. Nutrilac ProteinBoost is a patented microparticulated whey protein that enables the production of appealing, high-protein products based on acid whey using a standard dairy line.

“The main challenge for manufacturers is that acid whey has a low pH (between 4 and 5) and must be heat-treated to create appealing, high-quality products. This requires a protein source that maintains low viscosity throughout the heating process in a low-pH environment, yet standard whey protein cannot tolerate low pH or high heat,” Andersen said.

Are Consumers Aware?

Although sustainability remains a popular trend when buying foods and drinks, familiarity with the term “upcycling” is still emerging.

Innova Market Insights6 research has identified food waste as one of the top three concerns for global consumers.

“Over half are willing to pay a premium for brands that focus on food waste reduction, including using upcycled ingredients. Upcycling side-streams like acid whey enables brands to market themselves as environmentally responsible and driving positive change,” Andersen explained.

O’Keefe said consumers are adopting new shopping habits to reduce food waste.

“However, terminology matters less than tangible benefits. When upcycling delivers clear value, whether through improved nutrition, compelling flavor innovation, or reduced environmental impact, it becomes meaningful to the consumer. Importantly, sustainability cannot come at the expense of performance,” O’Keefe said.

Research from the Upcycled Food Association shows around 99 percent of consumers see food waste as an issue with 71 percent connecting it directly to climate change. This indicates a deeply resonate problem, according to Jeanroy.

Upcycled Foods Inc. stated when it comes to retail perception, 97 percent of shoppers said they would view a supermarket carrying upcycled products positively—or at least no differently—than one that doesn’t.7 Jeanroy said this shows “no downside risk in offering these products.”

“Even more importantly, the presence of the Upcycled Certified mark drives behavior: more than half of consumers report increased purchase intent when they see the certification on packaging,” Jeanroy said. “So, while not every consumer may use the word ‘upcycled,’ they absolutely respond to what it represents—reducing waste, improving sustainability, and making smarter use of resources.”

Upcycled Foods Inc. also stated 95 percent of consumers want to do their part to eliminate food waste and 57 percent of surveyed consumers said they are interested in purchasing upcycled foods. Fully 83 percent reported upcycled products are as attractive or more attractive than conventional options.8

“While not all consumers fully understand the technical definition of upcycling, sustainability, waste reduction and responsible sourcing increasingly influence purchase decisions. When paired with strong clinical validation of health benefits, upcycled ingredients can resonate strongly with today’s values-driven consumers,” Jongsma added.

Ris added awareness of the term remains low, but the underlying concepts of sustainability and waste reduction resonate strongly with consumers.

“Research shows that when consumers understand that upcycled products help prevent waste and offer environmental or social benefits, their interest and willingness to purchase increases significantly,” Ris said.

Upcycling for Manufacturers

Upcycling represents an important evolution of the nutrition industry—delivering clinically validated health benefits while advancing circular economy principles, according to Jongsma.

Ackermann said for supply chain and upcycling, there are many considerations. One of the main ones being that inputs (upcycled materials) are often not homogenous and are hard to standardize in production.

“While building manufacturing processes, including upcycling, can be difficult to implement, in the long run, it can be cost-effective for brands to extract as much nutrition as possible from their processes,” Ackermann said. “Our life cycle analysis by Planet FWD9 shows that it is possible to be price sensitive and sustainable. Also, our analysis shows that focusing on upcycling or upcycled ingredients has much greater effects on overall carbon footprint than swapping out packaging.”

Jeanroy said it is important for manufacturers to understand that upcycling is not simply a “marketing angle.” It requires rigorous quality control, full traceability, scientific validation and transparent communication to avoid greenwashing.

“Upcycling represents a competitive opportunity. More consumers reward brands that are committed to sustainability. Integrating upcycled ingredients into production not only improves environmental performance but also makes it possible to tell a story of innovation and responsibility, strengthening brand reputation and market positioning,” Ris said.

Rizo added upcycling is a way to differentiate while also delivering on performance, traceability and consistency. It is also important to work with partners who can ensure quality, scalability and scientific validation.

“Upcycling is one of those rare opportunities where sustainability and innovation truly align. It allows the industry to think differently about resources while still delivering meaningful health benefits. As expectations continue to evolve, we see upcycled ingredients playing an increasingly important role in the future of nutrition,” Rizo said.

According to O’Keefe, upcycling is most impactful when combined with broader reformulation strategies that reduce carbon, optimize nutrition and extend shelf life. This dual focus on nutrition and sustainability is critical for the future of food.

“As sustainability expectations accelerate across regulatory, retailer and consumer landscapes, collaborative innovation will be essential,” O’Keefe said. “By integrating circular ingredient solutions with digital validation tools and science-based targets, manufacturers can move beyond intention to measurable progress, turning sustainability from a compliance requirement into a true growth strategy.” NIE