Food sidestream opportunity study
From residue to resource
The global food industry is under growing pressure to move beyond the linear model of produce, consume and dispose. Across agriculture, processing, retail, food service and consumption, large volumes of sidestreams, by-products and losses arise. Many of them retain nutritional, functional and economic value. The Food Sidestream Opportunity Study, prepared by the Danish Technological Institute (DTI) and financed by empirical foods, examines how leading organizations understand and pursue sidestream valorization, and which conditions are needed for it to scale.
About the study
The study is based on 16 semi-structured research conversations with representatives from 12 organizations across the food ecosystem: Aldi Süd, Avery Dennison, Bayer, Empirical Foods, Kroger, Nestlé, Novolex, Novonesis, Oterra, RBI, Starbucks and Tyson Foods. The conversations followed an exploratory approach inspired by Design Thinking. The aim was not statistical representativeness, but to identify recurring patterns, mechanisms, barriers and opportunities across sectors. The findings should therefore be read as cross-case insights rather than measures of how widespread a given practice is.
The empirical material is supplemented by examples of established upcycling pathways, an overview of the emerging U.S. upcycling ecosystem and a dedicated chapter with DTI's organizational and technological perspectives.
Valorization is an ecosystem challenge
The central conclusion is that sidestream valorization is an ecosystem challenge rather than a company-specific one. Successful initiatives rarely rest on a single technical intervention. They emerge when mindset, material-flow visibility, technology, collaboration, economic viability and market acceptance come together. Valorization often begins with a shift in perspective, where materials once treated as disposal problems are recognized as resources. Mapping volumes, quality, timing and composition is a prerequisite for action, and technology is an essential enabler but never a standalone solution. Collaboration is necessary yet demanding, since it requires aligned incentives and shared risk, while economic value remains the decisive mechanism for scaling.
Four analytical lenses
Because no single framework captures the full complexity, the study applies four complementary perspectives. The Farm-to-Fork lens shows where opportunities arise and demonstrates that they exist at every stage of the value chain, each with its own character. The Material Stream lens asks what is being valorized and shows how volume, consistency, perishability, safety requirements and logistics shape the feasible pathways. The Barrier and Solution lens explains why opportunities succeed or fail, revealing that economic, informational, organizational and market barriers interact and therefore call for coordinated responses. The Strategic Intent lens examines why organizations pursue valorization, from loss avoidance and efficiency to new business models and ecosystem transformation.
A hierarchy of value creation
Across the cases, an implicit hierarchy of ambition emerges. It begins with avoiding disposal and reducing losses, moves through recovering value from existing materials and creating new products and ingredients, and extends to new business opportunities and, ultimately, broader ecosystem transformation. These levels are not mutually exclusive. The most mature approaches combine efficiency, sustainability, innovation and collaboration in a coherent strategic vision.
Upcycling is becoming an industry
The study also places its findings in a wider context. Established examples such as brewers' spent grain, whey proteins, okara, oilseed press cakes and surplus bread show that valorization is already commercial practice. In the United States, specialized upcycling companies, scale-up players, corporate ventures, industrial processors, certification systems and industry associations are forming an ecosystem. Upcycling is moving from a niche sustainability activity toward a recognizable industrial domain.
Danish Technological Institutes perspectives from laboratory to industrial scale
DTI's contribution adds organizational and technological depth. On the organizational side, the report highlights the value of broadly anchored sustainability leadership combined with decentralized execution, continuous reassessment of sidestream potential as technology, policy and markets evolve, and specialized partnerships with startups and technology providers through flexible models such as joint development, licensing and off-take agreements.
On the technology side, DTI draws on experience from material assessment through pilot-scale development and techno-economic evaluation. The report covers biorefining and fractionation for cascading recovery of proteins, fibers and functional components, as well as fermentation and enzymatic conversion, including the upgrading of animal-processing sidestreams and the production of prebiotic fibers. It also addresses downstream processing with separation, membrane filtration and spray drying, the foundational role of hygiene and pasteurization, insect bioconversion, digitalization and automation, life cycle assessment and techno-economic analysis, and biomaterials for packaging. Together, these capabilities help bridge the gap between laboratory feasibility, pilot demonstration and industrial implementation.
Looking ahead
The report concludes that leadership in this field will be defined by four commitments: reframing waste as strategic capital, anchoring technology in sound economics, pioneering ecosystem collaboration, and aligning scientific rigor and food safety with real market demand.
The future of valorization lies less in discovering new resources than in recognizing, processing, connecting, commercializing and scaling the resources that already exist within the food system.
Who is the report for?
The study is relevant for food manufacturers, ingredient and biotechnology companies, retailers and food-service operators, packaging and technology providers, investors, and sustainability and innovation leaders. It offers both a strategic framework and practical technological insight.
Download the full report or contact the authors to learn more:
Prepared by Iben Bolund Nielsen, Cathrine Lippert and Lars Leopold Hinrichsen, Danish Technological Institute, 15 September 2026. Financed by empirical foods.