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Four things to know about upcycled foods

One company's food waste becomes another company's treasure
8/28/2024
upcycled foods
Allied Market Research estimates the global upcycled food market will climb to $97 billion by 2031. illustration by Lucila Perini

Charting its course

A lot of food goes to waste in Canada. In fact, food rescue organization Second Harvest estimates 96% of surplus edible food (imperfect fruit, wilted greens, ugly vegetables, for example) is wasted each year. But, with upcycling, these food items are rescued to make new products! 

This circular solution isn’t new, of course. Between 2019 and 2023, North American food and beverage launches with an upcycling claim climbed at a compound annual growth rate (CAGR) of 55%, reports Innova Market Insights. From desserts and side dishes to readyto-eat meals and alcoholic beverages, Lu Ann Williams, global insights director at Innova, says the trend is widespread.

Valued at US$53.7 billion in 2021, Allied Market Research estimates the global upcycled food market will climb to $97 billion by 2031.

Up and up and up!

Loop Mission, a Quebec-based company that makes cold-pressed juices, smoothies and wellness shots using imperfect fruits and veggies, is on pace to grow sales by 38% this year over last.

Loop Mission co-founder David Côté says he initially worried about building the brand around imperfect produce, fearing it would turn off shoppers. “But, [that] would have been the worst mistake ever if we hadn’t,” he says. “Our mission became the ultimate marketing tool and the reason buyers took our call.”

READ: Montreal’s Loop is on a mission to end food waste in Canada

Wize Tea, which makes sparkling iced teas from upcycled coffee leaves, is another Canadian success story. At the start of the year, the Vancouver-based brand was sold in 566 stores in Canada and the United States—a number that will grow to more than 900 by the end of September. “Consumers primarily connect on Wize Tea being low sugar and good-tasting; the upcycled component is a value-add,” says co-founder and CEO Max Rivest.

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John Gousvaris, operations manager at The Big Carrot Market in Toronto, says customers have been asking about Upcycled Grain Project, a New Zealand cracker brand made using grain discarded during beer production. “Their products are gaining popularity for both their sustainability and quality—we’re looking into carrying it,” he says.

As for 2024 launches? Nortera is introducing a “Perfectly Imperfect” vegetable mix to its Arctic Gardens brand this August. The mix is made using crop leftovers and trimmings, including carrots, cauliflower, butternut squash and broccoli.

Upcycled certified

The Upcycled Food Association (UFA) is a U.S.-based nonprofit formed in 2019 to advocate for the upcycled food industry and to increase consumer demand for upcycled products. Since launching its Upcycled Certified Program in 2021, the organization has certified 530 products from nearly 100 companies in 14 countries, including Canada, diverting more than 1.25 million tons of food waste.

READ: The U.S. has tons of leftover food. Upcycling turns would-be trash into ice cream and pizza

The UFA’s members are made up of more than 240 upcycled food companies, more than a dozen of which are in Canada, including Loop Mission and Riverside Natural Foods.

Pay it forward

According to New Hope Network NEXT Data and Insights, 60% of natural channel shoppers—versus 39% of total shoppers—are willing to pay more for upcycled products to help the planet. “Upcycled foods appeal to environmentally conscious consumers seeking novel and sustainable food options,” says UFA CEO Amanda Oenbring, while providing “a practical way for food business leaders to meet ESG and sustainability commitments.”

This article was first published in Canadian Grocer’s August issue.

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