Australia Upcycled Food Product Market Overview, 2031

Key Insights

• Australia wastes approximately 7.6 million tonnes of food annually, representing about one-third of all food produced in the country that is never consumed. The economic impact is estimated at $36.6 billion per year, equivalent to around 1.4% of GDP and more than half of Australia’s agricultural GDP. A significant share of this waste over 70% is still edible, highlighting major inefficiencies in the supply chain. On a daily basis, roughly 2,900 meals are discarded, which is sufficient to feed the entire national population.
• The Australian Food Pact, launched in 2021, has driven measurable improvements in food waste reduction across the supply chain. Between 2022 and 2024, 38 major signatories including Coles, Woolworths, Aldi, Metcash, Simplot, Mars, Goodman Fielder, McCain, and Sodexo reduced food waste by approximately 13% (around 16,000 tonnes). These efforts generated $57 million in cost savings, avoided about $2 million in landfill levies, and reduced greenhouse gas emissions by roughly 505,000 tonnes of CO₂.
• A comprehensive study led by Queensland University of Technology in collaboration with End Food Waste Australia and the Queensland Government found that Australia’s regulatory environment does not present major barriers to upcycled food development. The research estimates that upcycled food systems could help address around 2.96 million tonnes of food waste generated annually across primary production and food manufacturing sectors, positioning upcycling as a scalable solution within Australia’s circular food economy.

Market Outlook

• According to the research report, " Australia Upcycled Food Products Market Outlook, 2031," published by Bonafide Research, the Australia Upcycled Food Products Market is anticipated to grow at more than 8.08% CAGR from 2026 to 2031.Australia’s upcycled food market is positioned for strong growth, supported by one of the highest per-capita food waste levels globally, an industry-led Food Pact, an emerging food-tech startup ecosystem, and tightening circular economy regulations focused on packaging and organic waste separation.
• Consumer awareness around sustainability is increasing, but a clear education gap remains in how food waste is generated and managed at the household level. An OzHarvest survey covering more than 3,000 households found that younger households (aged 35 and under) discard up to 113 kilograms of food annually, around 71% more than older generations, with an estimated cost of about $1,500 per household per year.

Market Dynamics

Driver: Packaging Circular Economy Policies Creating Upcycling Synergies
The Australian Packaging Covenant Organization (APCO) oversees the 2025 National Packaging Targets, which require all packaging to be reusable, recyclable, or compostable, with 70% of plastic packaging to be recycled or composted, an average of 50% recycled content in all packaging, and the phase-out of problematic and unnecessary single-use plastics. These targets create a strong policy incentive for recycled content in food packaging, offering upcycled food producers a pathway to achieve full supply chain circularity.
Challenge: Absence of National Upcycled Food Definition and Certification Standard
Australia lacks a nationally recognized definition of "upcycled food" and a formal certification scheme comparable to the Upcycled Certified standard in North America. The QUT study explicitly concluded that while existing regulations are not a barrier, the industry needs a clearer definition of upcycled food, shared manufacturing infrastructure, and targeted consumer education. Currently, only a handful of Australian companies such as The Coffee Cherry Co. have obtained Upcycled Certified status from the Upcycled Food Association.
Trend: Farm‑to‑Factory Agricultural Surplus Upcycling
SSS Strawberries, a strawberry grower partnering with End Food Waste Australia, was losing approximately 300 tonnes of strawberries annually, representing approximately $5 million in potential revenue. Through a collaborative project with EFWA and the Queensland Department of Agriculture and Fisheries, the grower developed a range of freeze‑dried, freeze‑dried powder, and frozen value added products. The project reduced farm waste by 80% and created new regional food manufacturing jobs.

Policies: Open Trade Structure and Classification Framework

• Australian Food Pact (2021) is a voluntary agreement led by End Food Waste Australia (EFWA), bringing together more than 38 of Australia’s largest food businesses. Signatories commit to halving food waste by 2030 and are required to measure and report waste annually using a standardized framework. The Pact follows a “Target, Measure, Act” approach and provides technical guidance to help businesses identify and implement upcycling opportunities across their operations.
• The NSW FOGO Separation Mandate, introduced under the Environmental Protection Legislation Amendment (FOGO Recycling) Bill 2025, was passed in 2025 and will begin implementation from 1 July 2026 for large food businesses, with a phased rollout to all food businesses, including cafés, restaurants, and supermarkets, by 2030. Non-compliance can result in penalties of up to $500,000, making it a strong enforcement-driven mechanism to increase organic waste separation and support circular food systems.

Industry News

• The Australian Food Pact Progress Report (2022–2024), released by End Food Waste Australia in July 2025, shows that 38 participating signatories achieved a 13% reduction in food waste. Over the same period, they generated savings of about $57 million and created an additional $12 million in revenue in 2025 by redirecting surplus food into higher-value applications.
• A landmark study by Queensland University of Technology, conducted with End Food Waste Australia and the Queensland Government, found that Australia’s regulatory environment does not present significant barriers to upcycled food development. However, it highlighted the need for a clearer definition of upcycled foods, shared manufacturing infrastructure, and stronger consumer education to support broader market growth and scalability.
• On the technology and innovation front, Goterra has expanded its insect-based modular waste processing systems across major Australian sites, including the Hyatt Regency Sydney (processing around 500 kg daily), Melbourne Airport, and City of Sydney operations, demonstrating scalable on-site organic waste conversion.

Segment Analysis

Australia Upcycled Food Products Market By Source Ingredient
• Cereals, Grains & Bakery By-products segment benefits from large-scale wheat, barley, and bakery production, generating bran, broken grains, and surplus baked goods. Recovery is relatively structured due to strong industrial food processing systems. By-products are used in high-fiber flour blends, baked snacks, breakfast cereals, and animal feed applications. Adoption is increasing as large retailers and food manufacturers integrate circular economy targets under the Australian Food Pact.
• Australia’s strong beer and spirits industry produces substantial volumes of spent grain and fermentation residues. These by-products are already widely collected and repurposed, particularly in animal feed and composting systems. Emerging food-grade applications include protein-rich snacks, baking ingredients, and fermentation-based products. Innovation is supported by partnerships between breweries and food-tech startups.

Australia Upcycled Food Products Market By Product Type
• The beverages segment includes functional drinks, juices, and coffee-based products made from fruit waste, spent coffee grounds, and fermentation residues. Café culture and high coffee consumption in urban areas generate large volumes of reusable beverage by-products. Innovation is focused on antioxidant drinks and low-waste functional beverages. Growth is supported by health-conscious and sustainability-driven consumers.
• Dairy & Dairy Alternative Products is anchored in whey protein recovery and dairy process optimization. Products include protein shakes, yogurt derivatives, and fortified dairy beverages. Strong dairy processing infrastructure ensures consistent by-product recovery. Demand is increasing for high-protein and sports nutrition products, particularly among younger consumers.

Australia Upcycled Food Products Market By Process Type
• Drying and dehydration are widely used due to Australia’s large horticultural surplus and need for shelf-stable ingredient production. This method is common for fruits, vegetables, and agricultural residues from primary production regions. It enables efficient conversion into powders, flakes, and snack ingredients for retail and export markets. SMEs and agri-processing firms dominate this segment due to relatively low capital requirements.
• Milling and powdering play a central role in converting grain by-products, pulses, and bakery waste into functional food ingredients. Australia’s strong wheat and cereal production base ensures steady raw material availability. Outputs include fiber-rich flours, protein concentrates, and baking mixes used in health-focused food products. Demand is increasing due to rising adoption of plant-based and clean-label foods.

Australia Upcycled Food Products Market By Distribution Channel
• Offline retail remains the dominant distribution channel for upcycled food products in Australia, particularly through supermarkets, specialty grocery stores, and health food retailers. Major chains such as Coles, Woolworths, and Aldi stock upcycled snacks, bakery items, and beverages as part of sustainability initiatives. Store availability is increasing, with in-store promotions and educational labeling helping drive consumer adoption.
• Online and D2C channels are rapidly growing, accelerated by consumer demand for convenient, sustainable, and traceable food products. Platforms such as Plenti, direct-to-consumer startups, and online marketplaces offer upcycled foods with nationwide shipping. E-commerce growth is supported by targeted digital marketing, subscription models, and eco-conscious packaging.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects 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 recommendation

By 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-products

By Product Type
• Snacks & Ready-to-Eat Products
• Bakery & Cereal Products
• Beverages
• Dairy & Dairy Alternative Products
• Sauces, Condiments & Spreads
• Upcycled Ingredients & Supplements
• Prepared Foods & Meals
• Others

By Process Type
• Reprocessing & Reformulation
• Drying & Dehydration
• Milling, Powdering & Concentration
• Fermentation & Biotransformation
• Extraction, Cold Pressing & Other Processes

By Distribution Channel
• Offline
• Online Retail / E-commerce / D2C