South Korea Upcycled Food Product Market Overview, 2031

Key Insights

• South Korea generated approximately 4.64 million tonnes of food waste in FY2023, including non-edible fractions, making it one of the highest per capita food waste generators globally. Despite this, the country has developed one of the most advanced food waste management systems, supported by a volume-based disposal fee system, RFID-enabled tracking infrastructure, and a strict ban on food waste landfilling.
• The market for products derived from food waste in South Korea was valued at approximately USD 2.1 billion in 2025 and is projected to reach USD 2.9 billion by 2035, reflecting strong policy support and growing corporate investment in circular economy solutions. Growth is being driven by increasing commercialization of waste-to-value technologies, rising sustainability commitments from food manufacturers, and expanding consumer acceptance of environmentally friendly products.
• A major regulatory development is the revision of the Enforcement Decree of the Resource Recycling Act, announced in September 2025 and effective from 2026. It mandates that beverage producers using more than 5,000 tonnes of PET annually must incorporate at least 10% recycled content, increasing to 30% by 2030. This policy is expected to strengthen demand for recycled materials and indirectly accelerate food waste valorisation across adjacent industries.
• The innovation ecosystem is also rapidly expanding, with startups developing advanced bioconversion and waste-to-product technologies. SOYFT BIOME has created AquaProtein technology to convert tempeh fermentation waste into dairy-free cream and sauce bases, supported by MYSC funding and selection for the 2026 EMA AGRIFOOD accelerator. Meanwhile, Greenda has commercialized waste-to-fuel solutions using fried food scraps, raising 3 billion won in Series A funding and securing ISCC EU certification, demonstrating the scalability of food waste valorisation technologies in Korea.

Market Outlook

• According to the research report, " South Korea Upcycled Food Products Market Outlook, 2031," published by Bonafide Research, the South Korea Upcycled Food Products Market is anticipated to grow at more than 8.65% CAGR from 2026 to 2031.The upcycled vegetable snacks segment, a key indicator of consumer-facing upcycled product adoption, is projected to grow at a compound annual growth rate of 11.93% between 2026 and 2033. Chips remain the largest product type by market size in 2024, while flakes are expected to record the fastest growth over the forecast period.
• Regionally, South Gyeongsang Province is leading in agricultural waste utilisation, North Jeolla Province is strengthening farmer-partnership models, and Jeju Island is developing tourism-linked environmental programmes that promote ecological sustainability and awareness.
• The market is shifting from a landfill ban driven recycling system toward a value-added innovation ecosystem. This transition is reflected in the rise of AI-powered B2B surplus redistribution platforms such as MONA, which connect corporations with upcycling manufacturers and welfare organisations, as well as digital food-sharing applications like Yindii that help reduce retail and restaurant food waste.

Market Dynamics

Driver: Strong Government Investment in Alternative Protein and Food Tech R&D
The South Korean government is actively investing in the infrastructure for plant‑based and fermentation‑derived food technologies that naturally rely on upcycled ingredients. The Korea Food Promotion Institute is pushing to create an ecosystem for domestic soybean alternative foods. The Food Tech Research Support Center, scheduled for completion in 2026 at the Jeonbuk Iksan Food Cluster, will be the nation's first specialised support facility in the field of plant‑based alternative foods, supporting farms and companies based on facilities for separating proteins using domestic soybeans.
Challenge: The Crisis of High‑Salinity Fermented Sauce Waste
A distinctive and highly challenging waste stream unique to Korean cuisine is the solid residue generated from traditional fermented sauces. According to data from the Ministry of Agriculture, Food and Rural Affairs, approximately 30,000 to 50,000 tonnes of solid by‑products are generated annually solely from the production of fermented sauces. These by‑products possess an exceptionally high salt concentration, often ranging between 10% and 15%, rendering them unfit for standard composting, animal feed that can only be mixed below 2-3% proportion or incineration (high salt damages equipment).
Trend: Large‑Scale Industrial Upcycling of Fried Food Waste into Sustainable Aviation Fuel
Greenda has developed proprietary technology to convert fried food scraps a waste stream that was rarely recycled into high‑purity SAF (Sustainable Aviation Fuel) raw materials. This production is considered the first commercialization in Korea, and facilities capable of producing over 10,000 tons annually are currently under construction. The company has acquired ISCC EU international sustainability certification, establishing a system to manage the entire SAF raw material value chain, from raw material collection and production to quality control and delivery, based on certification.

Industry News

• The Ministry of Environment announced amendments to the Enforcement Rules and Enforcement Decree of the Resource Recycling Act in September 2025. These require beverage producers using more than 5,000 tonnes of PET bottles annually to include at least 10 percent recycled content in their packaging, effective from early 2026.
• In April 2026, the government presented its Action Plan for Transition to a Plastic-Free Circular Economy to the Cabinet. The plan targets a 30 percent reduction in virgin plastic use by 2030 and expands recycled-content mandates to food and cosmetics containers, increasing PET bottle requirements from 10 percent to 30 percent by 2030. It also promotes the integration of plastics previously incinerated into recycling streams, supports pyrolysis of waste plastic films, and accelerates adoption of reusable container systems in multi-use facilities.
• In January 2026, Seoul Metropolitan Government launched a food waste reduction point system for households using RFID-based food waste disposal machines. Participants are rewarded with redeemable points that can be used to offset taxes and apartment management fees, with limited enrollment in the initial rollout phase.
• In May 2026, SOYFT BIOME secured funding from MYSC and was selected for the 2026 EMA AGRIFOOD programme, a government-backed accelerator managed by the Korea Institute of Agriculture Technology Promotion under MAFRA. The company is scaling its AquaProtein ingredient derived from tempeh fermentation waste for B2B foodservice applications, with planned expansion into cosmetics and medical nutrition.

Segment Analysis

South Korea Upcycled Food Products Market By Source Ingredient
• Cereals, Grains & Bakery By-products segment is driven by Korea’s high rice consumption and growing bakery industry, which generates rice bran, broken grains, and bakery surplus. Recovery systems are well established through structured recycling regulations and industrial collection networks. Outputs are used in flour blends, rice-based snacks, fiber-enriched bakery products, and animal feed. Demand is increasing for functional and clean-label grain-based ingredients.
• South Korea’s beer and soju industries generate large volumes of spent grain and fermentation residues. These by-products are efficiently collected through industrial recycling systems and long-established supply chains. Traditionally used in animal feed, they are increasingly being upgraded into food-grade applications. Emerging products include protein-rich snacks, fermentation substrates, and functional food ingredients.

South Korea Upcycled Food Products Market By Product Type
• Snacks and ready-to-eat products are one of the fastest expanding consumer-facing categories in South Korea’s upcycled food market. Products include vegetable chips, rice-based snacks, and bakery surplus repurposed items distributed through convenience stores and online channels. This segment is strongly supported by urban demand and sustainability-driven consumption behavior. It benefits from advanced cold-chain and retail infrastructure enabling quick commercialization of surplus ingredients.
• Bakery and cereal-based upcycled products are widely developed using rice bran, wheat residues, and bakery surplus from retail chains. This segment is strongly linked to Korea’s high convenience bakery consumption culture. Applications include fiber-enriched breads, rice flour snacks, and reformulated baked goods. Large bakery chains and industrial processors play a central role in scaling production.

South Korea Upcycled Food Products Market By Process Type
• Drying and dehydration technologies are widely used for stabilizing agricultural residues such as vegetables, fruits, and kimchi by-products. This method is popular among SMEs and food tech startups due to its cost efficiency and scalability. It enables long shelf-life ingredients for snacks, powders, and seasoning bases. Adoption is increasing due to demand for low-moisture functional food ingredients and export-ready formulations.
• Milling and powdering are highly developed in South Korea due to advanced food processing infrastructure and strong demand for functional ingredients. This process is used for rice bran, grain residues, coffee grounds, and vegetable by-products. It enables production of fiber-rich flours, protein concentrates, and nutraceutical powders. Industrial food manufacturers dominate this segment, ensuring high consistency and scalability.

South Korea Upcycled Food Products Market By Distribution Channel
• Offline channels remain the dominant route for upcycled food products in South Korea, supported by the country’s highly organized retail and convenience store network. Large supermarket chains, cafés, and institutional food service operators integrate surplus food recovery into procurement systems. RFID-based waste tracking and mandatory recycling frameworks strengthen supply consistency for offline buyers. Consumer adoption is strong in urban areas where sustainability labeling and eco-certified retail sections are widely available.
• Online and D2C channels are expanding rapidly, driven by South Korea’s highly digital consumer base and strong penetration of e-commerce platforms. Mobile-first purchasing behavior supports subscription models for functional upcycled foods, beverages, and snacks. AI-enabled surplus redistribution platforms and food-sharing apps are increasing access to discounted sustainable products. Growth is reinforced by younger consumers prioritizing eco-friendly consumption and convenience-based digital food purchasing.


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