Key Insights• The US upcycled food market is anchored by a robust and expanding ecosystem primarily shaped by the efforts of the Upcycled Food Association UFA. Founded in 2019 the UFA is a global membership based trade association dedicated to accelerating the upcycled economy and is supported by a network of more than 180 businesses worldwide.• The UNEP Food Waste Index Report 2024 cites the US Environmental Protection Agency EPA 2019 Wasted Food Report to provide high confidence national estimates for the United States.• Households waste 73 kg per capita per year food service wastes 74 kg per capita per year and retail wastes 12 kg per capita per year. The US is recognized as one of only six G20 countries with household data sufficiently robust to track progress toward SDG 12 point 3 which aims to halve food waste by 2030.Market Research Report• According to the research report, " US Upcycled Food Products Market Research Report, 2031," published by Actual Market Research, the US Upcycled Food Products Market was valued at more than 19.24 Billion in 2025.The trajectory of the US upcycled food market is influenced by direct factors such as supportive legislation. Notably, the proposed Reduce Food Loss and Waste Act of 2025 S.835 in the US Congress aims to establish a USDA led voluntary certification program to reduce food loss and waste which could create a favorable regulatory environment for upcycled food businesses. In parallel the NO TIME TO Waste Act S.1395 also introduced in 2025 explicitly defines upcycled food product for the first time in federal legislation marking a significant step toward formalizing the category.• Similarly state level mandates such as New Yorks Food Donation and Food Scraps Recycling law which is being phased in are acting as a catalyst by creating a structural imperative for businesses to divert surplus food. These laws are expected to drive up food donations and food scrap recycling by nearly 500000 tons per year generating a larger supply of feedstock for upcycling companies.• Consumer acceptance is a key indirect factor shaping market viability.

A 2025 research study that surveyed 947 US consumers identified four distinct consumer segments Greenthusiasts Balanced Believers Healthy Hesitants and Eco Skeptics. Market DynamicsDriver: Strong Institutional and Legislative SupportThe market is driven by a confluence of legislative efforts at both federal and state levels. The introduction of bills like the "Reduce Food Loss and Waste Act of 2025" and the "NO TIME TO Waste Act" demonstrates growing political will to formalize and support the upcycled food industry. Simultaneously, state-level mandates such as New York's Food Donation and Food Scraps Recycling law compel large-scale generators of food waste to find diversion pathways, creating a reliable and increased supply of surplus food and byproducts for upcycling companies. Challenge: Building Supply Chain TrustA primary challenge is the nascent state of supply chain infrastructure and the need for standardization. To obtain Upcycled Certified status, a supply chain audit is required to ensure that upcycled ingredients come from a verified source. While this builds trust, it also places an initial operational burden on companies to implement rigorous waste monitoring processes and provide verifiable data on the amount of food diverted as a result of their production.Trend: Emergence of Advanced Upcycling TechnologyThe market is moving beyond simple repurposing toward advanced technology platforms. Companies like ReGrained and NETZRO are investing in patented technologies and culinary science to develop novel, nutritious ingredient platforms, transforming food byproducts into high-value inputs like flour and other food components.

This trend indicates a maturation of the industry, shifting its focus from waste reduction alone to the creation of scalable, technology-driven, and commercially viable ingredient solutions.Policies• State level mandates create a structural market driver for upcycling. New Yorks law requires certain large businesses and institutions to donate edible surplus food and recycle remaining food scraps. This law has already diverted 32 million pounds of food from landfills since 2022. It is set to expand its requirements in 2028 which will directly increase the volume of feedstock available for upcycled product creation.Industry News• Divert Inc Secures Funding to Scale Infrastructure January 2026 Divert Inc a circular economy company announced it has secured new funding to support its growing operations and expand wasted food solutions to more retailers and manufacturers across North America• UFA Hosts Global Research Symposia September 2025 The Upcycled Food Foundation hosted its second Global Scientific Research Community Symposium where 20 speakers from 9 countries presented the latest quantitative and qualitative research on upcycled food innovation in collaboration with Cornell University• Expansion of Organics Recycling at Fred Meyer Stores June 2025 Divert announced the expansion of its organics recycling program to all Fred Meyer stores highlighting the scaling of commercial food waste recovery partnerships• A FoodNavigator article from January 2022 describes ReGrained as a food upcycling technology and ingredient platform that rescues production side streams, currently brewers spent grain.The same article confirms its patent pending technology co developed with the United States Department of Agriculture, which uses a thermo mechanical process to upcycle nutritious plant matter.• The Upcycled Food Association identifies NETZRO as a member that provides a food technology platform with proprietary technology that captures and converts industrial food and beverage byproducts into upcycled food ingredients.Segment AnalysisUnited States Upcycled Food Products Market By Source Ingredient• The United States generates around 106 million tons of food waste annually across the food system, with fruits and vegetables forming one of the largest contributors. This stream alone accounts for a significant portion of edible waste from households, retail, and food service channels. High availability of raw material supports strong upcycling activity, especially in powders, purees, and functional ingredients. • Cereals, grains, and bakery by-products form a major industrial waste stream generated from large scale food processing and retail surplus.

These materials are increasingly redirected into secondary food production such as snacks, flour alternatives, and brewing inputs. Bakery waste is particularly valuable due to its short shelf life and immediate reusability potential.United States Upcycled Food Products Market By Product Type• Cereals, grains, and bakery by-products account for about 12 to 15% of total food waste, mainly from processing and retail surplus. Upcycling utilization ranges from 20 to 30%, with strong applications in flour substitutes, snacks, and brewing inputs. Bakery surplus is particularly valuable due to its immediate reusability in secondary food production. This segment benefits from established food manufacturing infrastructure in the US.• Brewery and distillery by-products, especially spent grain, show one of the highest upcycling efficiencies at 35 to 45%. They represent about 8 to 10% of total food processing waste and are widely used in protein rich snacks and ingredient formulations.

Strong partnerships between breweries and upcycling companies have accelerated commercialization. This is one of the most mature circular economy segments in the US food industry.United States Upcycled Food Products Market By Process Type• Snacks & Ready-to-Eat Products Snacks & Ready-to-Eat Products is the largest and fastest growing application segment in the US upcycled food market, driven by strong consumer demand for convenient and sustainable foods. A significant share of new product launches, around one third, falls into this category. It uses recovered ingredients from fruits, grains, and bakery waste with recovery efficiency reaching up to 25 to 40%. Growth is supported by retail expansion and strong sustainability positioning.• Bakery & Cereal Products Bakery & Cereal Products form a core application area for upcycled ingredients, accounting for a significant share of usage in processed foods. This segment primarily utilizes surplus grains and bakery waste to create upcycled flour, fiber, and baked goods.

Waste reduction efficiency ranges between 20 to 30% depending on formulation. Strong food manufacturing infrastructure in the US supports consistent scaling.United States Upcycled Food Products Market By Distribution Channel• Offline distribution is the backbone of market scale up. Startups are rapidly expanding their physical retail presence, with B SIDES expecting its upcycled puffs to reach over 1500 retail doors across the Northeast, including stores such as Westerly Natural Market, Dumbo Market, Westside Market, and Foxtrot. Major national chains actively stock Upcycled Certified products, including Target, Whole Foods Market, Walmart, Kroger, and Amazon. • Institutional channels are also gaining momentum. The Spare Food Co secured a national contract with Premier, a major healthcare group purchasing organization, to supply upcycled produce blended burgers to hospitals, schools, and corporate kitchens across the United States. At the same time, large scale waste diversion partnerships are expanding.

Divert Inc operates its organics recycling program across all 105 Fred Meyer stores and in 2024 the partnership diverted 5.4 million pounds of unsold food from landfills.Considered in this report• Historic Year: 2020• Base year: 2025• Estimated year: 2026• Forecast year: 2031Aspects covered in this report• Upcycled Food Product Market with its value and forecast along with its segments• Various drivers and challenges• On-going trends and developments• Top profiled companies• Strategic recommendationBy Source Ingredient• Fruits & Vegetables• Cereals, Grains & Bakery By-products• Brewery & Distillery By-products• Dairy By-products• Coffee, Cocoa & Beverage By-products• Oilseed, Pulse, Nut & Seed By-products• Meat & Seafood By-products• Other Food Processing By-productsBy Product Type• Snacks & Ready-to-Eat Products• Bakery & Cereal Products• Beverages• Dairy & Dairy Alternative Products• Sauces, Condiments & Spreads• Upcycled Ingredients & Supplements• Prepared Foods & Meals• OthersBy Process Type• Reprocessing & Reformulation• Drying & Dehydration• Milling, Powdering & Concentration• Fermentation & Biotransformation• Extraction, Cold Pressing & Other ProcessesBy Distribution Channel• Offline• Online Retail / E-commerce / D2C.