Upcycled foods gain momentum as brands turn waste into value-added products

The trend is driven by sustainability goals and cost pressures.

Upcycled foods—products made from surplus ingredients and food production by-products that would otherwise be discarded—are gaining traction globally as manufacturers look to cut waste, improve efficiency, and respond to growing sustainability expectations from consumers, according to GlobalData.

The approach turns imperfect or excess ingredients into new consumer products, helping companies reduce waste, improve efficiency, and strengthen sustainability claims while targeting environmentally conscious shoppers.

A 2025 Q3 GlobalData survey found that 50% of consumers say sustainable sourcing always influences their purchase decisions, underscoring growing demand for environmentally responsible food options.

Food waste accounts for an estimated 8–10% of global greenhouse gas emissions and costs the global economy around $1t annually, according to the Food and Agriculture Organization of the United Nations (FAO), part of the United Nations.

This has pushed companies to adopt “rescue” and upcycling strategies that repurpose surplus or imperfect food into sellable products.

“As consumers become more aware of the supply chain and food waste, demand for sustainable and environmentally friendly food options is on the rise,” said 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.”

Despite growing awareness of sustainability issues, affordability continues to shape purchasing decisions.

A GlobalData 2026 Q1 consumer survey found that 25% of respondents are spending more on groceries due to rising prices, while 22% say they have reduced spending on at-home food and drink purchases to save money.

Additionally, 33% of consumers in a 2025 Q3 GlobalData survey identified high prices as a barrier to buying environmentally friendly food and beverage products.

Day said that rising awareness of the environmental and economic impact of food waste is building strong momentum for upcycled foods.

“Sustainability alone is unlikely to secure long-term growth whilst consumers remain under financial pressure,” she said. “To ensure long-term growth and build a loyal consumer base, brands will need to keep upcycled options affordable.”