Upcycled ingredients continue to gain momentum as a key food trend. But why aren't we seeing more of them incorporated into big name-brand foods? (pssst...we're looking at you, Kellogg's and Kraft Heinz...)

Barriers to incorporate upcycled ingredients have traditionally been cost and scale. Keep reading, and you’ll find out break both barriers: create upcycled ingredients at a competitive price point, and develop a consistent, large-scale supply chain.

Upcycled Foods: What Are They and Why Do They Matter?

Currently, over one-third of the world’s food is uneaten, causing 3.3 billion tons of CO2e annually, wasting the natural resources used for growing and producing it, amounting to nearly $1 trillion in value. And yet, while so much food goes to waste, 800 million people are hungry.

Most byproducts from the food processing industry are clean, edible and full of nutrients but are often only used for livestock feed, compost, or worst-case scenario - landfilled. Upcycled foods -- made from byproducts, irregular foods, and overproduction -- reclaim the wasted resources in producing food that isn’t eaten, generate new products without new raw materials, contribute to the circular economy, and feed more people.

Growing Demand

2/3 of consumers are willing to pay for for sustainable food products.

Consumers are increasingly demanding sustainably produced products. In fact, 99% of all consumers see food waste as a problem, two-thirds are willing to pay more for sustainable food products, and 45% specifically want products made from upcycled ingredients.

Upcycled foods are not just as healthy as non-upcycled; in some cases, they’re even healthier. They’re often made from whole, unprocessed raw materials and many come from the cores, peels, and pomace cut out of processed foods (think apple parts after juicing) – parts which have the most nutritional value and less sugar. Another example: brewers spent grain flour, made from the byproducts of beer brewing, has twice the protein and four times more fiber than wheat flour.

Small Successes

Numerous small brands have been producing great upcycled products for years: Renewal Mill, Regrained, Barnana, and Uglies Snacks are just a few. But why haven’t large CPGs joined the party? Here are some of the barriers for the biggies:

Operational complexity: Sourcing and integrating upcycled inputs into existing supply chains is challenging.
Cost concerns: Upcycled materials are perceived to cost more (but they don’t have to).
Brand risk: Fears around greenwashing accusations, safety, and consumer confusion deter large brands from taking the risk.
R&D limitations: Legacy processes and slower innovation cycles in corporations are difficult to change.
Regulatory ambiguity: Lack of global standardization on defining and regulating upcycled ingredients.

Leading the Change

Granted, there are several reasons big brands may not want to be first on the upcycling bandwagon. But the benefits of being on the forefront may outweigh them:

Competitive advantage: A leadership position in sustainable food production would force others to catch up. You don’t want to be seen as the laggard.
Risk mitigation: Being first to major market in the upcycling world helps future-proof against ESG pressure, regulations, and carbon accounting and may even set standards for companies to follow.
Brand loyalty: Over 90% of millennial and Gen Z consumers are sustainably driven4, and that philosophy extends to the foods they buy and consume. Companies who offer environmentally friendly solutions will gain their trust for years to come.
Innovation opportunity: Upcycled ingredients create space for new SKUs and products, some of which haven’t even been created yet (think functional foods, nutritional boosters, etc.).

How New Technology Makes Sustainable Foods Scalable and Profitable

GTF Technologies has perfected the technology to cost-effectively stabilize fresh fruits, vegetables and grains, enabling food producers to upcycle their byproducts and bumper crops into valuable powder ingredients. The RENU™ Drying & Milling System makes upcycled ingredient production attainable with these key features:

2-in-1 dryer and mill micronizes material in seconds, lending to a low cost per pound
Modular design allows for production scalability
Food grade stainless steel and integrated kill-step creates RTE/RTD ingredients
Retains nutritional quality of food, offering premium ingredients

RENU solves many of the barriers to entry for CPGs in the upcycling arena, paving the way to make money, not waste. In most cases, ROI is achieved in under two years.

Future-Proof Your Food Brand—Starting Now

The brands that will win the next decade are the ones making bold moves now. If you're part of an innovation, R&D, or sustainability team at a major food company, this is your moment to act.

GTF partners with leading food and beverage manufacturers to help them transform fruit, vegetable, grain, and nut byproducts into high-value powder ingredients—without disrupting existing operations.

Our scalable RENU System makes it easy to test, scale, and succeed.

Contact us to schedule a trial run of your product or discuss how the RENU System would work with your product lines at:

info@gtf-technologies.com