Australia’s manufacturing sector could play a central role in capturing value from the rapidly expanding global upcycled food market, projected to reach USD $68.56 billion by 2032, according to research supported by End Food Waste Australia.
The study points to a growing opportunity for manufacturers to transform surplus produce and byproducts into higher-value food products, as the market is expected to nearly double from USD $38.95 billion in 2024, based on estimates from Fortune Business Insights.
According to End Food Waste Australia, upcycled foods are produced by converting excess ingredients or manufacturing residues into new products, offering both commercial and environmental benefits.
The research found Australia is well placed to develop a competitive upcycled food sector, particularly as it seeks to address an estimated 2.96 million tonnes of food waste generated annually across primary production and manufacturing, as previously reported by Food Innovation Australia Limited.
The findings stem from the two-and-a-half-year Accelerating Food Transformation project led by Queensland University of Technology in collaboration with End Food Waste Australia and the Queensland Government. The research examined regulatory, manufacturing and consumer factors influencing the sector’s development.
Associate Professor Hope Johnson said coordinated action across multiple areas is needed to move the sector forward.
“This project has highlighted the importance of understanding and navigating existing regulatory frameworks, including food safety and labelling, while demonstrating that regulation itself is not a primary barrier when approached with clarity and confidence,” Johnson said.
She added that building consumer trust and demand is essential to scaling the market. “Critically, the research builds the evidence base required to understand consumer acceptance and demand, which is essential to developing a viable new market and supporting credible claims to enable greater investment and scale.”
End Food Waste Australia Director for Research, Development and Extension, Francesca Goodman-Smith, said the project offers practical guidance for industry participants, including manufacturers.
“By bringing together regulatory analysis, industry experience and consumer evidence, the study offers a shared foundation to support coordinated action, reduce risk and accelerate learning through case studies and guidance for manufacturers of upcycled foods,” Goodman-Smith said.
She added that the findings have broader relevance beyond Australia. “The findings are relevant not only nationally, but also internationally, contributing to the growing body of knowledge on how upcycled food sectors can be responsibly developed, scaled and embedded as a core strategy for reducing food waste, increasing profitability and strengthening food system resilience.”
From an industry perspective, Rowan Little of Montague Farms said growers see upcycling as a practical pathway to improve returns.
“On farm, food waste isn’t about carelessness; it’s often more related to economics,” Little said. “Upcycled products give us a way to generate a financial return for more of our fruit, but we can’t do it alone.”
He noted that collaboration with manufacturers and clearer regulatory guidance remain important. “Clear regulatory guidance, collaboration with manufacturers and industry, reliable pathways to market and confidence that surplus food can be safely transformed are all critical.”
The project also produced a suite of free online resources, including a manufacturer’s guide and case studies, aimed at supporting growers, producers and manufacturers exploring upcycling opportunities.
