Transforming Food Waste
Use of upcycled food ingredients is one way of improving sustainability and reducing waste within the bakery industry.
By Jonathan Thomas
Much of the growing interest in upcycled food ingredients can be attributed to rising concerns over food waste and its effects upon the environment. Traditionally, the bakery industry has been one of the main contributors towards food waste – according to data from the United Nations (UN), over 13% of all food produced worldwide is lost between harvest and retail, while around 19% is wasted in households and via industrial and foodservice channels. The bakery industry is one of the worst offenders, mostly due to the relatively short shelf-life of products such as bread and cakes, as well as overproduction by some leading operators.
It is estimated, for example, that although more than 100 million tonnes of bread are produced worldwide every year, more than 1 million tonnes are wasted. One of the worst culprits in the European region is the UK, where standard bread represents the second most wasted food in households and accounts for an 80% share of all annual wastage from the bakery industry. According to data from the Waste and Resources Action Programme (WRAP), around 900,000 tonnes of bread is wasted in the UK every year, equivalent to 24 million slices per day. The cost of this food waste within the UK bakery industry is estimated at GBP1.1bn per year.
Bakery companies with large-scale manufacturing operations are especially prone to generating food wastage due to the higher volumes involved in the production process, examples of which include dough trimmings and expired ingredients. Food waste within sectors such as bread also encompasses products that do not meet various cosmetic or aesthetic standards, although they remain perfectly edible. Typically, much of the waste generated by the bakery industry is disposed of via composting or landfill, the latter of which results in anaerobic decomposition and the production of methane. Some is also used in the manufacture of animal feedstuffs.
Legislative measures are now being introduced to try to reduce the amount of food waste being generated at the commercial level, which will impact upon many bakery operations. In the UK, new regulations covering England came into force during March 2025, which aim to improve waste management procedures and boost recycling rates. Under the terms of the new legislation, companies and other organisations that produce over 5kg of food waste per week must now separate food waste from other waste streams, by placing it in separate bins and arranging for its collection by licensed carriers. The government in the UK hopes to eliminate food waste from landfill by 2030, preferring it to go for anaerobic digestion treatment where it can be used in the manufacture of biofuels.
Over the last few years, some bakery companies have been making serious efforts to reduce food waste. One such example is Fazer Group of Finland, which aims to reduce the amount of food waste generated by half by 2030. Between 2020 and 2024, it achieved a reduction of 13%. One of its key initiatives within this area has been increased adoption of upcycling – for example, its Vantaa bakery facility has invested in a recycling machine that reuses surplus dough to make new bread, and which has reduced annual food waste by more than 300 tonnes. The company has also introduced its ‘Brewed with Fazer Rescued Bread’ concept in collaboration with Teerenpeli Brewery & Distillery. This includes the use of surplus rye bread as a raw material in the beer brewing process as a partial replacement for malt.
In the UK market, the company Earth & Wheat is committed to reducing waste in the bakery industry, mostly via the ‘rescue’ of high-quality bakery goods which otherwise would have been wasted. This includes bakery goods such as pancakes, crumpets and flatbreads, which are largely rejected by supermarkets and other retail outlets for cosmetic reasons. Since 2021, the company claims to have rescued over 600 tonnes of food, a significant portion of which is sold on to customers in the form of subscription boxes.
Elsewhere in the UK, market leader Warburtons claims not to have sent any food waste to landfill since 2015. The bakery chain Gail’s reuses surplus ingredients such as dough trimmings and cheese rinds, as well as offering a Waste Not range that uses unsold bread loaves to create new products for sale the next day. Examples from the Waste Not range include croissants (e.g. Almond and Ham & Cheese), sourdough bread, Cheddar Cheese crackers and Chocolate Babka. Meanwhile, Aldi UK has started using unsold bread to manufacture new eco-conscious beers, as part of its goal of reducing operational food waste by 50% by 2030.
Upcycled Food Ingredients
Using upcycled food ingredients represents a key area of opportunity for bakery industry operators, especially smaller firms needing to reduce their operational costs. Much of the current growth within the sector is being driven by greater consumer demand for products offering health claims such as clean-label and minimal processing, as well as concerns over sustainability within the food industry. Research from the French-based firm AIT Ingredients, for example, found that 57% of consumers expressed a strong interest in purchasing foods made using upcycled ingredients.
The growth of the sector can be illustrated by the formation of the Upcycled Food Association (UFA) in the US. Created in 2019, it has since expanded and now encompasses more than 200 member companies. The organisation, which offers a global certification scheme, defines upcycled foods as ‘foods that use ingredients that otherwise would not have gone to human consumption, are procured and produced using verifiable supply chains and have a positive impact upon the environment.’ In Europe, efforts are being made to develop the sector. During April 2025, the Federation of European Manufacturers and Suppliers of Ingredients unveiled a grant programme available to companies within the region’s bakery and patisserie industries to boost sustainable production, including using upcycled ingredients.