Onome Amuge
As the world population continues to grow, there is a corresponding increase in food consumption and waste. The sheer scale of food waste is staggering, with an estimated 1.3 billion tonnes of food going to waste each year, equivalent to $990 billion, according to the United Nations.
From farm to table, food waste has become a pressing issue for businesses, governments, and individuals around the world. Every step along the supply chain presents opportunities for food to be wasted – from inefficient farming practices to poor food storage to consumers throwing out perfectly edible food.
Upcycled foods, defined by the Upcycled Food Association as products made with ingredients that would otherwise be discarded, have been identified as a potential solution to the problem of food waste. The concept involves transforming food by-products, surplus ingredients, and other so-called waste ingredients into delicious and nutritious new products. From a business perspective, upcycled foods present a valuable opportunity to create new products with low input costs and a high return on investment.
As of today, the upcycled food products industry is a rapidly growing sector of the food industry that is reshaping the way many think about food production and consumption. Upcycled food products range from snacks and beverages to condiments and pet food, and are created using food ingredients that would otherwise have been wasted. By reusing these ingredients, upcycled food products are able to reduce food waste, while also adding value to the ingredients and promoting the circular economy.
According to a report by Allied Market Research,the global upcycled food products market size was valued at $53.7 billion in 2021, and is projected to reach $97 billion by 2031, growing at a CAGR of 6.2 per cent from 2022 to 2031.
The global upcycled food products market size is projected to grow at a significant rate in the coming years, driven by the rising cost of raw materials. With increasing pressure on global food production due to factors such as climate change, land degradation, and water scarcity, the cost of raw materials is rising, making it more difficult for businesses to source ingredients at a reasonable cost. As a result, upcycled food products, which utilise ingredients that would otherwise be wasted, are becoming an increasingly popular option for businesses looking to reduce costs and improve sustainability.
One of the major benefits of upcycled food products is that they can help businesses reduce their costs and increase their sustainability. By reusing food waste that would otherwise be discarded, businesses can save money on raw materials and processing costs. This cost savings can be passed on to consumers in the form of lower prices, or used to invest in other areas of the business. In addition, upcycling helps to reduce the environmental impact of food production, as it reduces the amount of resources required to produce new ingredients.
The case for promoting upcycled food products in Nigeria is a compelling one, as outlined by Brian Essien, senior partner at McBrain & Company. He noted that 30 per cent of all food produced globally is wasted, which amounts to 1.3 billion tonnes of food ending up in landfills each year.
According to Essien, China is the leading contributor to global food waste, followed by India and then Nigeria. Allied Market Research estimates that these three countries account for over $20 billion in wasted food each year. This waste is mostly generated primarily by homes, farms, and food service industries such as event halls and eateries. In addition, breweries and other food manufacturers are also major contributors to food waste. This wasted food, according to estimates, could be used to feed a small country each year, highlighting the magnitude of the problem.
As defined by the financial analyst and business process consultant, upcycling food is a process that involves transforming surplus foods, food wastes and their byproducts, into safe, nutritious, and appealing second meals or other byproducts. These, he noted, are typically created using sustainable and ethical methods that reduce food waste and promote a Zero Waste economy.
Essien identified type and source as the two most important market segments for upcycled foods. The type segment includes the end-products of upcycled foods, such as snacks, bakery products, beverages, biochemicals, condiments, personal care products, and animal and pet foods. The source segment refers to the origins of the food waste that is being upcycled, which can include household food waste, agricultural food waste, or industrial food waste.
According to Essien, the upcycled foods sector in Nigeria can be a cost-effective way to create new food products, reduce food insecurity, create jobs, and generate revenue. This, he explained, can be done through government initiatives, such as providing grants and tax incentives for food/waste recycling and packaging companies, and partnerships between government, investors, and the private sector.
Tunde Kara, the CEO and co-founder of Vendease, has spoken in support of upcycled foods. Kara noted that upcycling can help to reduce waste and conserve resources, and he encouraged businesses and consumers to explore the benefits of upcycled foods.
Kara, whose platform, VendEase, has over 4,000 customers in Nigeria and Ghana, urged the Nigerian government to support food-tech companies that develop innovative solutions to reduce food waste. Kara noted that financial incentives, grants, or access to resources for research and development can accelerate the implementation of effective food waste reduction technologies, adding that improved storage and improved agriculture policies, facilitated by food-tech, are essential to solving the problem.
Temitope Akinyemi, founder of the Zero Food Waste Initiative in Nigeria, highlighted the many negative consequences of food waste, including food insecurity, overuse of resources, and environmental pollution.
Akinyemi noted that food waste is a problem in both developed and developing countries. In developed countries, food waste tends to occur at the retail and consumer level, while in developing countries, it tends to occur at the production, storage, and distribution levels.
Despite the many approaches that have been taken to address food waste, Akinyemi believes that upcycled foods are a promising solution. This, she explained, is because they have the potential to reduce the environmental impact of food production, while also providing food security and nutrition benefits.
According to Akinyemi, the use of imperfect and damaged farm produce, as well as agro-industrial by-products, in upcycled foods is a major benefit of this innovation. She also pointed out that these ingredients would otherwise be wasted, but they can be used to create new products that have a range of benefits, including environmental sustainability and food security. She added that upcycled foods often have higher nutritional value than traditional processed foods, making them a healthier option for consumers.
To further illustrate her point, Akinyemi cited several specific examples of how by-products from brewing, oil extraction, and juice production can be used in upcycled foods. She stated that the by-products of brewing can provide a source of dietary fiber, protein, minerals, and vitamins,adding that oil extraction by-products are rich in fiber, protein, and other nutrients.
These by-products,she said, can also provide important antioxidants, which have been linked to a range of health benefits.
