\"Food upcycling\" is an effort to transform food byproducts and off-spec items that have until now been discarded into another food product. Okara from tofu production, spent malt from beer brewing, spent coffee grounds, off-spec vegetables, fruit peels and cores\u2014all of these have nutritional value usable as food ingredients, yet have been thrown away for reasons of distribution or appearance. The global food upcycling market was worth about 53.7 billion USD as of 2021 and continues to expand at an annual growth rate of over 6%.<\/p>\n\n\n\n
In this article, from the perspective of Minoyo, which has handled Kyoto confectionery raw materials for 120 years, we comprehensively organize\u2014from a business point of view\u2014the definition of food upcycling, the market size, 10 domestic and overseas case studies, SDGs alignment, the significance of corporate involvement, and practical points for product development. We have compiled the information that those in charge of new business, sustainability, and product development should grasp.<\/p>\n\n\n\n
Food upcycling is an effort to give new value to food ingredients and byproducts that were destined for disposal and use them as another food product. It is often confused with recycling, reuse, and food loss measures, but the concepts differ subtly.<\/p>\n\n\n\n
Recycling (resource recovery) means returning waste to raw materials and reusing it. Upcycling (value-creating regeneration) is the act of turning waste into \"a different product of higher value,\" characterized by creating new product value. In food upcycling, for example\u2014\"spent beer grain \u2192 cookies,\" \"okara \u2192 bakery,\" \"spent coffee grounds \u2192 mushroom growing medium\"\u2014the exit of disposal becomes the entrance of a new product.<\/p>\n\n\n\n
Food loss (food waste) refers to food that is discarded even though it is still edible, amounting to about 4.72 million tons annually in Japan (Ministry of Agriculture, Forestry and Fisheries (MAFF) FY2022 estimate). Food upcycling is one means of reducing this food loss. However, since the targets of upcycling also include \"byproducts not directly eaten by people (spent grounds, peels, cores),\" it can be said to be a broader concept than food loss reduction.<\/p>\n\n\n\n
Food upcycling is a representative practice of SDG Goal 12, \"Responsible Consumption and Production.\" The point that it simultaneously achieves the circular use of resources, the reduction of waste, and the creation of new economic value is valued in corporate sustainability strategy. It also has high affinity with CSR and ESG investment, and in recent years there have been increasing cases of it being incorporated into the business strategies of major food companies.<\/p>\n\n\n\n
In both the global and domestic markets, food upcycling is a rapidly growing sector. Let us grasp the overall picture with figures.<\/p>\n\n\n\n
The global food upcycling market was worth about 53.7 billion USD in 2021, and is forecast to expand at an annual growth rate of 6.2% or more from 2022 to 2029 (source: Data Bridge Market Research). The structure has the United States leading the market, followed by Europe and Asia. Climate change, population growth, and SDGs demands are tailwinds for market expansion.<\/p>\n\n\n\n
In Japan, representative cases include Oisix ra daichi's \"Upcycle by Oisix,\" Kikkoman's byproduct utilization, Fuji Oil's plant-based food development, and Meiji's chocolate byproduct utilization. Independent efforts are also advancing among small and medium enterprises and startups, and Kyoto's Minoyo \"Japanese cacao<\/a>\" is one of them.<\/p>\n\n\n\n There are four reasons the food upcycling market is expanding: (1) as an evaluation axis for SDGs and ESG investment, it directly links to corporate value; (2) cost pressure from soaring prices of major raw materials such as cacao, coffee, and soybeans; (3) rising environmental awareness among consumers; and (4) tighter sustainability regulations in the EU and the US. In particular, the cacao shock from 2024 onward has accelerated the development of alternative ingredients in the confectionery industry. For details, please also refer to\"Five reasons cacao beans are soaring in price\"<\/a>.<\/p>\n\n\n\n Why is food upcycling attracting so much attention now? Let us organize three reasons.<\/p>\n\n\n\n Food loss is composed roughly half of household-generated and half of business-generated waste, and even within the business-generated portion, byproducts from the food manufacturing industry (tofu okara, spent beer grain, juice-pressing residue, etc.) are also a problem because they incur disposal costs. Shifting these from \"discarding\" to \"utilizing\" is the core idea of upcycling.<\/p>\n\n\n\n The prices of major raw materials such as cacao, coffee, wheat, and sugar are rising worldwide. For food manufacturers dependent on imports, turning their own byproducts into ingredients serves as a hedge against raw material cost risk. The cost structure differs fundamentally between \"raw materials bought back from scratch\" and \"byproducts already on hand within the company.\"<\/p>\n\n\n\n Environmentally conscious consumer segments (centered on Millennials and Gen Z) tend to have a high willingness to pay for sustainable products. The story of \"valuable food made from waste\" has strong appeal as brand differentiation. The fact that it is also easy to use in SDGs-context advertising and PR is another reason companies step into upcycling.<\/p>\n\n\n\n We introduce representative food upcycling case studies being developed in Japan. They are useful for understanding the breadth of ideas and the directions of implementation.<\/p>\n\n\n\n We introduce real cases across a wide range\u2014not only initiatives by major companies but also startups, small and medium enterprises, and regional ventures.<\/p>\n\n\n\n ASTRA FOOD PLAN, a Saitama Prefecture startup, developed a technology that dries and powders vegetable trimmings, food factory byproducts, and more in 5\u201310 seconds using its proprietary \"superheated steam roaster.\" The finished powder \"Gururiko\u00ae\" is offered in a variety of raw materials\u2014onion, shiitake, spent beer grain, and more\u2014and is adopted by food manufacturers, in-house cafes, and seasonings. It is a startup to watch, having won the 2025 ICC KYOTO Catapult.<\/p>\n\n\n\n \"upvege\" is a small-to-medium brand that regenerates vegetables that could not be sold on the market due to off-spec shape or size into high-value-added products while preserving their color, aroma, and nutrition. As a project adopted under the Ministry of Agriculture, Forestry and Fisheries (MAFF) SBIR (Small\/medium-enterprise Business Innovation Research fund), it has built a regional circular upcycling model in partnership with producing regions nationwide. It aims to establish \"upcycled food as a major category in the general food market\" by 2030.<\/p>\n\n\n\n kitafuku, a Yokohama venture, launched \"CRAFT BEER PAPER\" in 2021, upcycling the spent malt (the pressed residue of malt) produced in craft beer brewing into a raw material for paper. Developed for business cards, packaging, notebooks, and more, it is a regional venture case drawing attention as a cross-industry collaboration between breweries and paper product manufacturers.<\/p>\n\n\n\n SORENA, a Nagano Prefecture venture, partners with Iizuna Town to manufacture \"apple leather\" (synthetic leather) from the pressed residue produced in local apple processing. Developed into fashion items such as bags and wallets, it realizes a circular model connecting regional agriculture with urban consumers. It is a representative example of a regionally rooted upcycling venture.<\/p>\n\n\n\n \"OYAOYA<\/a>\", developed by Kyoto's Agriture Co., Ltd., is an upcycling D2C brand that turns Kyoto-grown off-spec vegetables and surplus vegetables from the off-season into dried vegetables through low-temperature drying. Making use of the tradition of Kyoto vegetables and the added value of being domestically grown, it distributes consumer dried-vegetable products nationwide. It is a domestic role model that achieves both regional agriculture and food loss reduction.<\/p>\n\n\n\n \"VEGHEET,\" developed by Aichi Prefecture's Aile, is a new food material made by combining off-spec, unsellable vegetables with agar and drying them into a sheet like nori seaweed. Offered in a variety of vegetables\u2014carrot, tomato, spinach, and more\u2014it is used as material for rolled items and wrap sandwiches. It is a representative example of a small-to-medium food manufacturer pioneering a new category.<\/p>\n\n\n\n A proprietary brand that food-delivery giant Oisix ra daichi has developed since 2021. It offers more than 20 kinds of upcycled products\u2014turning broccoli stems, daikon peels, pineapple cores, and more into chips, a pancake mix using okara, and processing the ume fruit left over after umeshu production into dried fruit. It is a representative domestic case widely distributed in BtoC.<\/p>\n\n\n\n Soy sauce giant Kikkoman has established a circular system that reuses byproducts\u2014such as soy sauce lees, soy sauce oil, fruit juice-pressing residue, and okara\u2014for feed, fertilizer, and new food materials. A distinctive feature is that it advances both yield improvement to reduce the very volume of byproducts generated and the effective use of waste (source:Kikkoman CSR<\/a>\uff09\u3002<\/p>\n\n\n\n The \"Coffeeloop\" project developed by Asahi Uyus, a subsidiary of the Asahi Group, manufactures reusable \"Coffeeloop cups\" using the spent coffee grounds from Hotel Granvia Kyoto as raw material. Implemented in the guest-only lounge of Hotel Vischio Kyoto, it is a case of a major company creating a circular product in partnership with the hotel industry.<\/p>\n\n\n\n A domestic upcycling case by Kyoto's Minoyo (a small-to-medium, 120-year-old Kyoto confectionery raw-materials company). Details are explained in the \"Minoyo's Wa no Cacao\" section in the latter half of this article.<\/p>\n\n\n\n Overseas, particularly in the US and Europe, initiatives by food-upcycling-specialized startups and major companies stand out.<\/p>\n\n\n\n In the US, the industry body \"Upcycled Food Association (UFA)\" was established and operates its proprietary \"Upcycled Certified\" certification system. Products are certified on criteria such as what percentage of the food is upcycled material and whether traceability is met\u2014a mechanism that lets consumers choose upcycled products at a glance.<\/p>\n\n\n\n US-based Voyage Foods is a startup that develops alternative ingredients for cacao and coffee using grape seeds, sunflower seeds, barley, and more. Partnering with major raw-material makers such as Cargill, it is advancing B2B supply globally. Full-scale entry into the Japanese market is still limited, but it is a company drawing high attention in the industry.<\/p>\n\n\n\n In beer powerhouses such as Germany, the Netherlands, and the UK, breads, snacks, and protein bars made from spent beer grain have been commercialized. Numerous branded upcycled products have appeared, such as Belgium's \"Brewer’s Bread\" and the Netherlands' \"Crumbs.\"<\/p>\n\n\n\n Food upcycling directly contributes to several of the SDGs. Let us organize the talking points for when companies feature it in CSR reports and integrated reports.<\/p>\n\n\n\n The SDG goals to which food upcycling directly contributes are mainly three: (1) Goal 12 \"Responsible Consumption and Production\" (sustainable production and consumption patterns), (2) Goal 2 \"Zero Hunger\" (effective use of food), and (3) Goal 13 \"Climate Action\" (reduction of greenhouse gases during waste processing). These are indicators that are easy for consumers and investors to understand as well.<\/p>\n\n\n\n In institutional investors' ESG evaluations, a company's efforts toward a circular economy are emphasized. Food upcycling cases are areas where it is easy to differentiate in ESG evaluation, since reduction effects are easy to demonstrate quantitatively (amount of waste reduced, amount of CO2 reduced, etc.). They can be used as material for investor-facing IR and integrated reports.<\/p>\n\n\n\n Overseas regulations are being strengthened one after another, such as the EU Deforestation Regulation (EUDR) and mandatory sustainability reporting in the UK and the US. Japanese companies too, when expanding globally, cannot avoid addressing supply chain sustainability. Food upcycling is a strategic option that can simultaneously achieve regulatory compliance and brand value enhancement.<\/p>\n\n\n\n Let us organize the concrete benefits for food manufacturers and raw-material makers of venturing into the food upcycling business.<\/p>\n\n\n\n In the food manufacturing industry, the disposal costs for byproducts arise on the scale of several million to several hundred million yen annually. If byproducts can be commercialized through upcycling, disposal costs are converted into a revenue source. In particular, companies that can turn byproducts into ingredients within their own operations can fundamentally change their cost structure.<\/p>\n\n\n\n You can build new business lines that do not rely on existing products. \"Upcycling\" and \"sustainable\" appeals are added value on a different axis from existing brands, making pricing easier, and there is potential to build product lines with high value-added margins.<\/p>\n\n\n\n The story of \"generating value from waste\" is easy to use for media coverage, social media diffusion, and recruitment branding, and is an area with a high effect in CSR and PR contexts. Beyond the sales of a single product, it contributes to enhancing the brand value of the company as a whole.<\/p>\n\n\n\n Let us organize the checkpoints to keep in mind when using food upcycling raw materials in practice.<\/p>\n\n\n\n Since upcycled raw materials start from byproducts, quality variation by lot tends to occur in reality. In supplier selection, always confirm whether traceability of producing region, processing steps, and storage conditions is ensured. The presence or absence of third-party certification (Upcycled Certified, organic certification, etc.) is also an important judgment axis.<\/p>\n\n\n\n For new materials, the basic approach is to confirm the texture, color, and flavor in the finished product before making an adoption decision. It is realistic to start from a blending ratio of about 5\u201310% and gradually search for the optimal point. Also perform cost estimation for each blending ratio, and calculate the cost, sale price, and profit margin at mass-production scale.<\/p>\n\n\n\n Appeals such as \"upcycling,\" \"byproduct used,\" and \"food loss reduction\" need to be designed so as not to violate the Food Labeling Act or the Act against Unjustifiable Premiums and Misleading Representations. When featuring specific figures (amount of disposal reduced, amount of CO2 reduced), third-party-verifiable data is essential. Coordinate with a food labeling specialist at an early stage of product development.<\/p>\n\n\n\n Minoyo, with 120 years in Kyoto confectionery raw materials, is advancing food upcycling starting from domestic soybeans.<\/p>\n\n\n\n Minoyo'sSoybean Roastery<\/a>roasts domestic soybeans to make kinako (roasted soybean flour) and soybean coffee. In the production process of soybean coffee (a grain coffee made by grinding roasted soybeans and extracting), spent roasted grounds remain as a byproduct after extraction. Rather than discarding these as \"waste material,\" we decided to turn them into a new food ingredient.<\/p>\n\n\n\n The spent roasted grounds of soybean coffee firmly retain their fragrance and deep color. By making use of 120 years of cultivated roasting expertise and applying secondary roasting, particle-size adjustment, and blend design, we crafted a \"Japanese cacao<\/a>\" ingredient with a flavor and color close to cacao. In three forms\u2014powder, flake, and paste\u2014it is used in product development for gelato, baked confections, drinks, and more.<\/p>\n\n\n\n If you are thinking \"I want to try an upcycled ingredient\" or \"I want to incorporate it into my own product development,\" pleaseContact<\/a>ormaterial download<\/a>contact us. For our business details, seeOur Business & Why We Are Chosen<\/a>, and the ordering process is summarized atOrdering Process & How to Order<\/a>.<\/p>\n\n\n\n Recycling means returning waste to its original material and reusing it; upcycling means adding new value to waste and turning it into a different product. In food upcycling, waste becomes the main raw material of a new product, as in \"spent beer grain \u2192 cookies\" and \"okara \u2192 pancakes.\"<\/p>\n\n\n\n You can purchase them at Oisix ra daichi \"Upcycle by Oisix,\" Natural Lawson, natural food stores, Amazon, Rakuten Ichiba, and more. Searching for \"upcycled food\" or \"food loss reduction products\" will turn up products from various makers.<\/p>\n\n\n\n First, make visible the volume, quality, and processing cost of your byproducts, and evaluate their commercialization potential. Next, decide whether to complete it through in-house manufacturing or to co-develop with an external partner. A phased approach\u2014going through sample trials, cost estimation, and food-labeling verification, then entering the market in small lots\u2014is safe.<\/p>\n\n\n\n It contributes quantitatively. It has multifaceted effects: reducing CO2 emissions during waste processing, reducing the production and transport burden of raw materials, and reducing food loss. On the other hand, since energy is also consumed in the processing steps to make new materials, it is desirable to comprehensively evaluate it through a life cycle assessment (LCA).<\/p>\n\n\n\n It is suited to confectionery makers affected by soaring cacao prices, food manufacturers wanting to strengthen sustainability appeal, and OEM contractors wanting to adopt domestic upcycled ingredients. Sample trials can be handled from small lots, and we can also assist with the flow from flavor evaluation of the trial product through to commercialization.<\/p>\n\n\n\n Food upcycling is an effort to transform byproducts, off-spec ingredients, and food destined for disposal into new, valuable products. The global market exceeds 50 billion USD and is growing at over 6% annually, and in Japan too, diverse cases have appeared among large, small, and medium enterprises alike. As a strategic area that can simultaneously achieve the SDGs, ESG evaluation, raw material risk hedging, and brand value enhancement, corporate involvement is getting into full swing.<\/p>\n\n\n\n Companies considering food upcycling as a new business, food manufacturers looking for ways to utilize their own byproducts, and those wanting to incorporate domestic upcycled ingredients into product development are welcome to consult Minoyo, with 120 years in Kyoto confectionery raw materials, at any time.Contact<\/a>ormaterial download<\/a>You can reach us via.<\/p>\n\n\n\n What is food upcycling? A thorough explanation of an approach that combines food loss reduction with the creation of new value. From definitions and market size to 10 case studies at home and abroad and why companies pursue it, a specialist with 120 years in Kyoto confectionery raw materials brings a professional perspective.<\/p>","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false,"_yoast_wpseo_title":"","_yoast_wpseo_metadesc":"\u98df\u54c1\u30a2\u30c3\u30d7\u30b5\u30a4\u30af\u30eb\u3068\u306f\u3001\u5ec3\u68c4\u4e88\u5b9a\u306e\u98df\u54c1\u3084\u526f\u7523\u7269\u304b\u3089\u65b0\u305f\u306a\u4fa1\u5024\u3092\u751f\u3080\u53d6\u308a\u7d44\u307f\u3067\u3059\u3002\u56fd\u5185\u5916\u306e\u4ee3\u8868\u4e8b\u4f8b10\u9078\u3001SDGs\u30fb\u30b5\u30b9\u30c6\u30ca\u8abf\u9054\u3068\u306e\u95a2\u4fc2\u3001\u53c2\u5165\u30e1\u30ea\u30c3\u30c8\u3068\u8ab2\u984c\u3092\u3001\u4eac\u83d3\u5b50\u539f\u6750\u6599\u306e\u8001\u8217\u304c\u539f\u6599\u76ee\u7dda\u3067\u6574\u7406\u3057\u307e\u3059\u3002"},"blog_category":[367,364],"blog_tag":[362,322,351,333,338],"class_list":["post-10129","blog","type-blog","status-publish","hentry","blog_category-cacao-project","blog_category-ingredient-guide","blog_tag-additives","blog_tag-ingredients","blog_tag-ingredient-guide","blog_tag-products","blog_tag-soybean-roastery"],"acf":[],"yoast_head":"\nTailwinds for Market Expansion<\/h3>\n\n\n\n
3 Reasons Food Upcycling Is Drawing Attention<\/h2>\n\n\n\n
(1) The Structural Problem of Food Loss<\/h3>\n\n\n\n
(2) A Hedge Against Soaring Raw Material Prices<\/h3>\n\n\n\n
(3) Consumer Environmental Awareness and Brand Value<\/h3>\n\n\n\n
10 Domestic Food Upcycling Case Studies<\/h2>\n\n\n\n
(1) ASTRA FOOD PLAN \"Gururiko\" | Powdering Food Waste with a Superheated Steam Roaster<\/h3>\n\n\n\n
(2) Green Ace Co., Ltd. \"upvege\" | An Upcycling Brand for Unused Vegetables<\/h3>\n\n\n\n
(3) kitafuku Co., Ltd. \"CRAFT BEER PAPER\" | Turning Spent Malt into Paper<\/h3>\n\n\n\n
(4) SORENA Co., Ltd. \"Apple Leather\" | Synthetic Leather from Iizuna Town, Nagano<\/h3>\n\n\n\n
(5) OYAOYA (Agriture Co., Ltd.) | Upcycling of Kyoto-Grown Dried Vegetables<\/h3>\n\n\n\n
(6) Aile Co., Ltd. \"VEGHEET\" | Vegetable Sheet Food<\/h3>\n\n\n\n
(7) Oisix ra daichi \"Upcycle by Oisix\"<\/h3>\n\n\n\n
(8) Kikkoman's Byproduct Circulation<\/h3>\n\n\n\n
(9) Asahi Uyus \"Coffeeloop\" | Regeneration of Spent Coffee Grounds<\/h3>\n\n\n\n
(10) Minoyo \"Wa no Cacao\" | Cacao Alternative from Spent Roasted Soybean Grounds<\/h3>\n\n\n\n
Overseas Food Upcycling Case Studies<\/h2>\n\n\n\n
The US \"Upcycled Food Association\" and Its Certification System<\/h3>\n\n\n\n
US Voyage Foods' Cacao and Coffee Alternatives<\/h3>\n\n\n\n
Europe's Use of Spent Beer Grain and Bread Crumbs<\/h3>\n\n\n\n
Food Upcycling and the SDGs \/ Sustainability<\/h2>\n\n\n\n
Related SDG Goals<\/h3>\n\n\n\n
Impact on CSR and ESG Evaluation<\/h3>\n\n\n\n
Responding to Overseas Regulations<\/h3>\n\n\n\n
The Significance and Benefits of Companies Engaging in Food Upcycling<\/h2>\n\n\n\n
Reducing Disposal Costs<\/h3>\n\n\n\n
Creating New Product Lines<\/h3>\n\n\n\n
Brand Value and PR Effect<\/h3>\n\n\n\n
Points for Utilizing Food Upcycling Raw Materials in Product Development<\/h2>\n\n\n\n
Traceability and Quality Control<\/h3>\n\n\n\n
Sample Trials and Cost Estimation<\/h3>\n\n\n\n
Food Labeling and Appeal Design<\/h3>\n\n\n\n
Minoyo's Wa no Cacao | Turning Spent Soybean Coffee Grounds into an Ingredient<\/h2>\n\n\n\n
The Spent Roasted Grounds Born from Soybean Coffee<\/h3>\n\n\n\n
The Ingredient-Creation Approach of the \"Wa no Cacao\" Project<\/h3>\n\n\n\n
Sample Consultations and Small-Lot Support<\/h3>\n\n\n\n
Frequently asked questions<\/h2>\n\n\n\n
Q1. What is the difference between upcycling and recycling?<\/h3>\n\n\n\n
Q2. Where can I buy food upcycled products?<\/h3>\n\n\n\n
Q3. How should I start an upcycling business for my own byproducts?<\/h3>\n\n\n\n
Q4. Does food upcycling really contribute to the environment?<\/h3>\n\n\n\n
Q5. What kinds of companies is Minoyo's Wa no Cacao suited for?<\/h3>\n\n\n\n
Summary | Food Upcycling Is a Shift from \"Disposal\" to \"Value Creation\"<\/h2>\n\n\n\n
References and sources<\/h2>\n\n\n\n
Related Articles<\/h2>\n\n\n\n