Saudi Arabia Upcycled Food Product Market Overview, 2031

Key Insights

• Saudi Arabia generates approximately 4 million tonnes of food waste annually, costing the Kingdom an estimated SR40 billion ($10.7 billion) each year, enough to build more than 1,000 schools and hospitals. A 2025 study by the Saudi Grains Organization (SAGO) found that the Kingdom wastes about 33.1% of its food supply, with an average per capita food loss and waste of approximately 155 kilograms annually, of which 87.8 kilograms represents waste.
• The government has made measurable progress toward reduction targets, with the food loss rate declining to 12.1% in 2025 from 14.2% in 2019, and the food waste rate falling to 15.8% from 18.8% over the same period. This reflects a combined 16% overall reduction since 2019, driven by the National Program to Reduce Food Loss and Waste under the General Food Security Authority (GFSA).
• The market is being accelerated by technology-driven startups, academic innovation, and large-scale recycling partnerships. Barakah, a Saudi foodtech startup founded in 2022, has saved nearly 1 million meals, partners with over 1,000 retailers including Cinnabon, Starbucks, and Dunkin Donuts, and operates across seven cities with rapid monthly growth. KAUST research is converting expired dairy and fruit waste into compounds used in animal feed, aviation fuel, and pharmaceuticals, while spin-off Polymeron transforms date by-products into biodegradable plastics.

Market Outlook

• According to the research report, " Saudi Arabia Upcycled Food Products Market Outlook, 2031," published by Bonafide Research, the Saudi Arabia Upcycled Food Products Market is anticipated to grow at more than 9.96% CAGR from 2026 to 2031.The upcycled vegetable snacks segment, a key indicator of consumer-facing upcycled product acceptance, is expanding steadily. The segment reached US$55.04 million in 2024 and is projected to reach US$149.43 million by 2033.
• The market landscape is rapidly transitioning from charity-driven food rescue to technology-enabled circular economy models. This transition is evidenced by Barakah’s app-based surplus redistribution model, which connects over 1,000 retailers and ranks among the top downloaded apps in its category.
• LuLu Hypermarket’s partnership with Tadweer is also enabling structured food waste collection from hotels, restaurants, and markets, converting it into organic compost through multi-stage processing including sorting, chopping, fermentation, and final compost production.

Market Dynamics

Driver: National Program to Reduce Food Loss and Waste and Letadom Platform
The Letadom National Program, launched by the General Food Security Authority (GFSA), serves as the central coordinating mechanism for Saudi Arabia's food loss and waste reduction strategy. The program was officially launched at a ceremony in Riyadh in September 2025, where eight cooperation agreements were signed aimed at promoting solutions and innovations to address food loss and waste, and 106 entities were recognized for their contributions.
Challenge: High Regulatory Barriers and Cultural Perceptions of Surplus Food
Despite Barakah's success, the founders had to learn to calibrate between supply and demand for both retailers and customers, with having too much demand and too little supply being a persistent operational challenge. Consumer perceptions of surplus food quality remain a barrier that the platform has addressed through clear rules, quality controls, and community review systems.
Trend: Date By-product Valorisation into Biodegradable Plastics
Polymeron’s business model is explicitly aligned with Saudi Vision 2030’s goal to diversify the economy beyond oil and establish a new industry in the Kingdom, a biodegradable plastics industry. By upcycling date by-products and expanding into poultry processing waste, the company is building a circular economy based on local resources. Rodrigo Jiménez Sandoval, co-founder and chief executive officer, stated: One of the goals of Saudi Vision 2030 is to diversify the economy beyond oil.

Policies: National Regulatory Framework

• Saudi Arabia Food Loss and Waste Reduction Targets under SDG 12.3 Saudi Arabia has reduced food loss and waste from 33.1% to 27.9%, a 16% decrease from the 2019 baseline, in response to Sustainable Development Goal SDG 12.3, which aims to reduce food loss and waste by 50% by 2030. The food loss rate declined to 12.1% from 14.2%, while the food waste rate fell to 15.8% from 18.8%.
• Saudi Vision 2030 Food Security and Circular Economy Commitments Under Vision 2030, Saudi Arabia has pledged to enhance food security through improved supply chain efficiency, circular economy principles, and diversification of the economy beyond oil. The Kingdom has set ambitious targets to divert 90% of waste from landfills by 2040 and eliminate 82% of existing waste sites by 2035.
• UNEP Memorandum of Understanding with Grace Preservation Foundation (15 April 2025) The MoU establishes a framework for cooperation in food waste tracking, measurement, and data analytics, and contributes to certification and award schemes for SMEs in the food and beverage sector.

Industry News

• GFSA Launches Second Field Survey to Measure Food Loss and Waste The General Food Security Authority announced the launch of its second field survey to measure food loss and waste rates across all stages of the food supply chain, building on the initial 2019 baseline study. Governor Ahmed Al-Fares stated that the survey will serve as a scientific basis for shaping future policies and expanding national initiatives to curb food loss and waste.
• Letadom National Program Officially Launched At a ceremony in Riyadh, the Letadom program was officially launched, with eight cooperation agreements signed aimed at promoting solutions and innovations to address food loss and waste, and 106 entities recognized for their contributions to enhancing food security.
• Barakah Raises 1.5 Million Seed Round the Saudi foodtech startup secured a 1.5 million dollar seed round led by Hambro Perks Oryx Fund, with participation from Doha Tech Angels, Food Labs, Salica Investments, Annex Investments, and KAUST Innovation Ventures. The company has sold nearly 1 million meals that would have otherwise gone to waste and works with over 1,000 retailers across seven cities.

Segment Analysis

Saudi Arabia Upcycled Food Products Market By Source Ingredient
• Cereal and bakery by-products are a major feedstock source because of high bread and grain consumption across the Kingdom. Surplus bread and flour waste are increasingly converted into animal feed, reformulated flour blends, and fiber-rich food ingredients. Retailers and bakeries are participating more actively in redistribution and reprocessing partnerships.
• Although alcoholic beverage production is limited, non-alcoholic beverage manufacturing and fermentation industries generate significant spent grain and yeast by-products. These materials are mainly used in animal feed, organic fertilizers, and industrial composting applications. Industrial recycling partnerships are gradually strengthening collection and reuse infrastructure.
Saudi Arabia Upcycled Food Products Market By Product Type
• Beverage manufacturers are increasingly exploring the reuse of fruit pulp, coffee grounds, and plant-based residues in functional drinks and nutritional beverages. Juice and dairy beverage producers are collaborating with research institutions to recover valuable nutrients from surplus products. Consumer demand for clean-label and functional beverages are driving innovation in this category. Sustainability initiatives under Vision 2030 are also encouraging resource-efficient beverage production systems.
• Saudi Arabia’s large dairy industry creates significant opportunities for converting whey and expired dairy streams into protein-rich ingredients and nutritional products. KAUST research initiatives are supporting the transformation of dairy residues into high-value industrial and food applications. Demand for dairy alternatives and functional protein products are increasing among younger consumers.

Saudi Arabia Upcycled Food Products Market By Process Type
• Drying & Dehydration Drying and dehydration technologies are increasingly used for preserving surplus fruits, vegetables, and date by-products in Saudi Arabia’s hot climate conditions. Food processors convert excess produce into powders, flakes, and shelf-stable snack ingredients with longer storage life and lower transportation costs. Dehydration facilities are expanding due to growing demand for natural flavoring agents and functional food additives.
• Milling and powdering processes are gaining traction for converting grain residues, date seeds, coffee waste, and vegetable fibers into functional ingredients. Food manufacturers are using concentrated powders in bakery products, supplements, and protein-enriched formulations. Industrial processors are improving yield efficiency through automated grinding and concentration systems.

UAE Upcycled Food Products Market By Distribution Channel
• Offline retail remains the dominant distribution channel for upcycled food products in Saudi Arabia, supported by hypermarkets, supermarkets, convenience stores, and foodservice outlets. Large retail chains and hospitality operators are increasingly participating in food surplus redistribution and sustainable product placement initiatives. Consumers continue to prefer in-store purchases for packaged snacks, bakery products, and prepared meals, particularly in Riyadh, Jeddah, and Dammam.
• Online retail and direct-to-consumer D2C platforms are growing rapidly as digitally connected consumers increasingly adopt app-based food purchasing models. Barakah, one of Saudi Arabia’s leading surplus food redistribution platforms, works with more than 1,000 retailers across seven cities and has already saved nearly 1 million meals from being wasted. Rising smartphone penetration, food delivery adoption, and sustainability-focused consumer behavior are accelerating online demand for discounted surplus meals and upcycled food products.

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