Upcycled Ingredients in Beverage Market Size is predicted to develop with an 7.4% CAGR during the forecast period for 2025-2034.
Upcycled ingredients in the beverage market refer to materials that are derived from food waste or byproducts that would otherwise be discarded and are transformed into valuable, safe, and nutritious ingredients used in beverage production. This approach supports sustainability by reducing food waste and lowering environmental impact. Types of upcycled ingredients used in beverages include coffee grounds and cascara (coffee cherry husks), fruit and vegetable pulp from juicing, spent grains from brewing beer, dairy whey, and food processing byproducts such as apple pomace, citrus rinds, and chickpea aquafaba.
These ingredients are applied in a wide range of beverages, from plant-based milks and energy drinks to spirits and functional wellness drinks. For instance, cascara is commonly used in coffee-flavored drinks, while spent grains are incorporated into protein drinks and even baked goods.
The growing adoption of upcycled ingredients is driven by several sustainability, economic, and consumer trends. Environmentally, upcycling helps address the global challenge of food waste which accounts for nearly one-third of all food produced and contributes about 8% of global greenhouse gas emissions by converting surplus materials into value-added ingredients. This supports climate action and broader sustainability goals. Additionally, consumers, especially younger demographics like Gen Z, are increasingly drawn to eco-friendly and clean-label products. Upcycled ingredients align with these preferences by promoting circular economy principles and reducing food loss.
However, challenges remain, including the need to ensure food safety and quality standards, as well as verifying supply chain transparency. The variability in ingredient quality, contamination risks, and fragmented sourcing can make large-scale adoption complex, despite the environmental and economic benefits.
Competitive Landscape
Some of the Key Players in Upcycled Ingredients in Beverage Market:
• Non-Alcoholic Beverages Companies
o Drinking Beverages (Functional Drinks, Tonics, Sparkling Waters):
The Spare Food Co.
WAJU
Nestlé SA
Crust Group
o Juices and Soft Drinks
Oisix ra Daichi
Green Bowl
o Ready-to-Drink (RTD) Teas and Coffees:
Upcycled Foods, Inc.
Discarded Spirits Co.
o Dairy and Plant-Based Beverages:
Renewal Mill
Planetarians
• Alcoholic Beverages Companies
o Beers:
Toast Ale
Crust Group
Upcycled Foods, Inc.
o Spirits (Vodka, Gin, Rum):
Black Cow Vodka
Discarded Spirits Co.
Misadventure Vodka
Hang 10 Distillery
Hayman’s
o Low-ABV and Alternative Spirits:
Upcycled Foods, Inc.
Dog and Spoon Distillery
Market Segmentation:
The upcycled ingredients in the beverage market is segmented by ingredient type, beverage type, distribution channel, end user. By ingredient type, the market is segmented into spent grains, fruit byproducts, whey and dairy byproducts, vegetable byproducts, other byproducts. By beverage type, it is segmented into non-alcoholic beverages and alcoholic beverages.
Non-alcoholic beverages is sub segmented into functional drinks, plant-based milks, juices and smoothies, teas and infusions, flavored waters. Alcoholic beverages is sub segmented into beers, spirits, hard, seltzers. By distribution channel market is segmented into supermarkets/hypermarkets, online retail, specialty stores, foodservice. By Distribution Channel market is segmented into household consumers, commercial users, institutional users.
Spent Grains Segment is Expected to Drive the Upcycled Ingredients in Beverage Market
Spent grains, which are a byproduct of brewing, are readily available in the U.S., with more than 202 million barrels of beer being produced each year. Spent grains contain high protein (27%) and dietary fiber (47%) content, providing high nutritional value for beverage composition. Upcycling spent grains saves waste and environmental footprint by converting them from livestock feed to food ingredients of high value.
They can be milled into flours and protein isolates for application in plant-based beverages, protein shakes, and functional drinks. Increasing consumer interest in clean-label, sustainable products, coupled with industry investment from firms such as EverGrain and Upgrain, positions spent grains as a leading player in the upcycled beverage market.
Non-Alcoholic Beverages is Growing at the Highest Rate in the Upcycled Ingredients in Beverage Market
The non-alcoholic drinks category is quickly adopting upcycled ingredients, fueled by increasing consumer interest in health, wellness, and sustainability—especially among Millennials and Gen Z. Ingredients such as fruit peels, coffee grounds, and spent grains not only save food from waste but also provide additional nutritional benefits, such as fiber, protein, and antioxidants. As functional and plant-based drinks get more attention, upcycled ingredients fit into clean-label trends and add natural nutrients that promote mental health, digestion, and immunity. Brands also utilize these ingredients to make tasty, complex products like mocktails, spirit-free drinks, and fortified waters, and appeal to adults who want something new, alcohol-free.
Regionally, North America Led Upcycled Ingredients in Beverage Industry
North America, particularly the United States, is leading the upcycled ingredients market in the beverage sector due to high food waste and excess byproducts such as spent grains and dairy whey. The abundance of raw materials enables large-scale upcycling. Robust consumer interest in sustainable, environmentally friendly products has prompted the use of upcycled ingredients in functional beverages, spirits, and plant-based milks. Innovation and investment by large brands and startups, as well as certification by organizations such as the Upcycled Food Association, are further driving market growth. Also, regulations and transparency measures are facilitating adoption and sale of upcycled ingredients by companies, making the U.S. a leader in this area even stronger.
Upcycled Ingredients in Beverage Market Report Scope:
|
Report Attribute |
Specifications |
|
Growth Rate CAGR |
CAGR of 7.4% from 2025 to 2034 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2025 to 2034 |
|
Historic Year |
2021 to 2024 |
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Forecast Year |
2025-2034 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Ingredient Type, Beverage Type, Distribution Channel, and By Region |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
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Competitive Landscape |
The Spare Food Co., WAJU, Nestlé SA, Crust Group, Oisix ra Daichi, Green Bowl, Upcycled Foods, Inc., Discarded Spirits Co., Renewal Mill, Planetarians, Toast Ale, Crust Group, Upcycled Foods, Inc., Black Cow Vodka, Discarded Spirits Co., Misadventure Vodka, Hang 10 Distillery, Hayman’s, Upcycled Foods, Inc., Dog and Spoon Distillery |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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