Upcycled Beverage Ingredients (Spent Grain & Surplus) Market : Global Industry Analysis and Opportunity Assessment, 2036

How big is upcycled beverage ingredients (spent grain & surplus) Market in 2026?

USD 501.1 million in 2026 and USD 1,164.7 million by 2036 at an 8.8% CAGR.

Sales in upcycled beverage ingredients (spent grain & surplus) market are projected to expand at 8.8% CAGR from 2026 to 2036 and increase value from USD 501.1 million in 2026 to USD 1,164.7 million by 2036. The industry is benefiting from the substantial volumes of brewing byproducts generated by the beverage industry, which provide a consistent feedstock for upcycling applications. Eurostat reported in August 2025 that European Union producers made 34.7 billion liters of beer during 2024. The production figure confirms a large recurring brewing base that generates spent grain across established facilities. The figure does not establish food-grade availability without controlled collection and rapid stabilization at each production site. Companies converting these streams into upcycled food products must manage moisture and batch variation at each brewery. Coordinating malt supply with drying or fermentation preserves usable solids and reduces handling losses across commercial collection routes.

United Kingdom projects can commercialize surplus-bread beer through licensed breweries, whereas Belgian ingredient routes may require novel-food review for unfamiliar processes. Belgium’s Federal Public Service Health reported in January 2025 that applications must document production and composition information plus safety and intended use. The requirement explains why recovered inputs need product-specific evidence instead of relying on a general waste-diversion claim. British launches face a different constraint because bakery collection must preserve traceability and allergen information throughout brewing schedules. Across both countries, food companies should compare food waste management with functional food ingredients through technical performance and documented food status.

Key Takeaways

• Growing emphasis on sustainable food production and food waste reduction is driving demand for upcycled beverage ingredients derived from spent grain and surplus raw materials.
• Brewer's spent grain is projected to account for 57.9% share in 2026, supported by recurring brewery output and established collection points.
• Beer is anticipated to represent 50.2% share in 2026, reflecting direct use of surplus bread within commercial brewing formulations.
• Beverages are forecast to capture 43.3% share in 2026, aided by flexible formats spanning alcoholic and nonalcoholic product development.
• Microbial instability and inconsistent composition create material constraints by reducing food-grade value during transport and storage.
• Competition spans Upcycled Foods, Agrain, Biograin, Toast Brewing, CRUST Group, Local Brewing, Brew'dBites, and Beer Bites across ingredient and finished-product routes.

Analyst Perspective

"Processors create commercial value during the hours between grain discharge and food-grade stabilization at each brewery. Collection schedules must protect microbial quality for every recovered batch entering commercial food production at scale. Formulators also need consistent fiber and protein performance together with stable flavor and dispersibility under commercial processing conditions. Companies that control feedstock handling and application performance can secure recurring contracts instead of depending on isolated waste-reduction launches."

- Nandini Roy Choudhury, Principal Analyst, Future Market Insights

How is the upcycled beverage ingredients (spent grain & surplus) market segmented?

The upcycled beverage ingredients (spent grain & surplus) industry is segmented by source, product, application, and region.

Source analysis separates brewer's spent grain, surplus bread, and fruit waste according to collection timing, moisture, and preprocessing needs. Product analysis distinguishes beer, functional ingredients, and flour by the commercial form sold to food manufacturers. Application analysis covers beverages, bakery products, and snacks because each route requires different sensory, processing, and shelf-life performance. Regional assessment considers food status, brewery density, transport distance, and available stabilization capacity across each geography. Clear category boundaries help formulators compare bakery ingredients without confusing finished products with intermediate commercial materials.

How does brewer's spent grain shape demand within the source category?

Breweries generate wet grain in concentrated batches that require immediate collection or stabilization for food use. Wet material has a limited transport window and needs documented food-grade handling throughout normal production weeks. RISE reported in March 2025 that wet spent grain supports microbial growth and that its Swedish project is testing drying and fermentation at industrial scale. The source therefore suits processors located near breweries with dependable pickup schedules and controlled stabilization capacity.

• Brewer's spent grain is likely to capture 57.9% share in 2026 attributable to recurring output from routine brewing and concentrated pickup points. Substantial fiber content supports processors that can maintain rapid collection and documented food-grade handling across commercial batches. Traceability separates controlled ingredient streams from animal-feed outlets that accept wet material with fewer processing requirements.
• Ingredient manufacturers favor stabilized grain powders or fractions that provide consistent moisture and particle size across repeat batches. Reliable specifications let formulators use dietary fiber benefits without accepting uncontrolled flavor or microbiological risk from fresh material. Documented shelf-life data supports wider distribution beyond nearby breweries and reduces uncertainty during commercial qualification.

What supports beer's position within the product category?

Commercial breweries can replace part of the malt bill with prepared surplus bread through familiar mashing and fermentation systems. Toast Brewing reported in July 2025 that its Breakfast Club collaboration with St Austell produced 30,000 liters of golden ale for 45 pubs. The launch demonstrates how licensed brewing capacity can convert segregated bakery bread into a repeat retail product without a dedicated brewery. Bread streams must remain clean and traceable so spoilage does not reduce fermentable carbohydrate content before scheduled production.

• In 2026, beer is expected to lead the product category with 50.2% share because licensed breweries can absorb prepared surplus bread through established mashing systems. The segment provides a visible retail route for measuring recipe consistency and replacement of conventional malted grain. Familiar excise and brewing controls support repeat production through established facilities with documented commercial responsibilities.
• Contract breweries can test bread inclusion through controlled recipes without committing additional capacity across a wider distribution network. Successful launches connect surplus collection with functional foods positioning and preserve alcohol compliance or consistent sensory quality. Retail expansion then depends on dependable bakery collection and licensed brewing capacity across each distribution territory.

Why are beverages central to the application category?

Beverage applications accommodate several upcycled formats including beer and protein-rich drink ingredients derived from brewing residues. Separation systems can create soluble proteins that fit established liquid mixing and filling operations at commercial scale. Alfa Laval reported in May 2025 that EverGrain produces EverPro from spent grain for sports shakes and coffee drinks. The commercial route shifts brewer residues beyond finished beer into formulation systems with defined protein and flavor requirements.

• The application category is forecast to be led by beverages at 43.3% share in 2026 due to flexible liquid-processing routes across alcoholic and nonalcoholic products. Beverage developers can commercialize fermented products or separated grain fractions without relying on one consumer proposition during scale-up. Shared processing equipment lowers the initial barrier for trials across several liquid formulations and commercial production settings.
• Drink formulators need controlled dispersibility and flavor since sediment or bitterness can undermine otherwise attractive nutrition claims. Application trials should compare plant-based protein performance across processing temperatures and shelf-life conditions during commercial scale-up. Technical teams also need measurable sediment and flavor limits that remain stable throughout extended storage and distribution.

What are the drivers, restraints, and opportunities in the upcycled beverage ingredients (spent grain & surplus) market?

Reliable side-stream access supports demand, while stability risks constrain adoption and broader applications create new value routes.

• Driver: Concentrated brewery and bakery side streams give ingredient processors recurring raw material for planned food-grade production.
• Restraint: High moisture and variable composition raise microbial or sensory risks during collection and stabilization.
• Opportunity: Broader ingredient portfolios can match recovered grain or fruit fractions with suitable beverage and bakery or snack formulations.

European food-waste targets strengthen the case for separating brewery and bakery side streams for controlled food production. The European Commission confirmed in October 2025 that member states must cut food waste from processing and manufacturing by 10% by 2030. The target gives large producers a clearer reason to separate usable side streams from mixed waste at the production site. Stable collection agreements can support dedicated drying or fermentation capacity near brewery and bakery clusters, improving feedstock consistency across planned ingredient runs.

High moisture makes fresh spent grain difficult to transport for food use without rapid microbial deterioration. Agrain reported in December 2025 that Nørrebro Bryghus releases hot spent grain for collection almost immediately. Agrain then presses and dries the material at its food-grade facility to limit unwanted bacterial growth. Commercial contracts must define holding times and transport conditions to reduce rejection risk and protect regional collection economics.

Broader ingredient portfolios create an opportunity to spread development costs across several feedstocks and applications. Upcycled Foods introduced commercial wine raisins in March 2025 through a partnership with The Wine RayZyn Company. The launch extended the company's offering from brewing residues into fruit-derived ingredients for bakery and snack formulations. A broader portfolio lets food manufacturers match recovered fractions with different texture and nutrition requirements across several product categories. Commercial gains require application tests that confirm stable performance beyond the original feedstock and launch campaign.

Which country CAGRs are profiled in the upcycled beverage ingredients (spent grain & surplus) market?

Country	CAGR
UK	8.1%
Germany	7.3%
USA	8.5%
Belgium	7.7%
Denmark	8.9%

How do country-level CAGRs compare in the upcycled beverage ingredients (spent grain & surplus) market?

The country comparison spans 1.6 percentage points and reflects a closely grouped growth outlook across the upcycled beverage ingredients (spent grain & surplus) market. Denmark, the USA and the UK create an upper group with limited separation between their forecasts, indicating broadly similar momentum in upcycled ingredient commercialization. Belgium remains close to this group while Germany follows within the same overall range. The modest spread across all five countries suggests that interest in beverage by-product valorization is expanding across multiple markets rather than being concentrated in a single geography. This pattern reflects growing efforts to reduce food waste, improve resource efficiency and develop value-added ingredients from spent grain and surplus beverage streams.

• Denmark shows a notable position within the comparison as sustainability-focused food innovation and circular economy initiatives continue to support the development of upcycled ingredient applications.
• The USA benefits from a growing ecosystem of food manufacturers and ingredient companies that are incorporating spent grain and surplus-derived ingredients into product development strategies.
• The UK maintains a strong position as demand for sustainable food ingredients encourages greater commercialization of brewery and beverage processing by-products.
• Belgium reflects increasing interest in converting brewing industry side streams into functional and nutritional ingredients for food and beverage applications.
• Germany continues to advance the market through its established brewing sector and increasing focus on resource optimization across food production value chains.

Comparable CAGRs do not create identical market conditions across countries. Differences in raw material availability, processing infrastructure, food industry participation and regulatory frameworks can influence commercialization pathways and adoption rates. Similar growth forecasts may therefore reflect different approaches to scaling upcycled ingredient production and market development. The full report provides country-level CAGR analysis across North America, Latin America, Europe, East Asia, South Asia, Oceania and the Middle East and Africa.

Country-wise Analysis

• English workplaces with at least ten employees must separate food waste from residual waste under rules effective since March 2025. Upcycled beverage ingredient demand in the UK is forecast to rise at 8.1% CAGR over the forecast period, supported by stronger source separation and established surplus-bread brewing. The Department for Environment, Food and Rural Affairs confirmed that affected workplaces must arrange separate food-waste collection. Separate collection improves visibility for bakery side streams but does not establish food-grade condition or allergen control. Ingredient producers need short collection routes and documented handling standards for surplus bread entering beverage or flour production. Service agreements must address missed collections and rejected loads that occur during bakery production peaks.
• German processors operate beside a large brewing system that concentrates spent grain near established industrial production sites. In Germany, demand for upcycled beverage ingredients is predicted to advance at 7.3% CAGR through 2036 due to feedstock scale and strict food-quality requirements. Destatis reported in February 2026 that German establishments sold roughly 7.8 billion liters of beer during 2025. Brewery scale supports efficient collection near major plants, although declining beer sales can limit growth in available residue. Food ingredient manufacturers must stabilize wet grain quickly and prove consistent specifications across different brewing recipes. Regional economics improve through predictable pickup schedules and clearly assigned responsibility for wet-material handling at each facility.
• United States ingredient developers must coordinate brewery records with federal food-safety and labeling requirements across commercial applications. Adoption of upcycled beverage ingredients in the USA is estimated to expand at 8.5% CAGR through 2036, enabled by broad product-development capacity and retailer testing channels. TTB stated in June 2026 that its beer statistics derive from Brewer's Reports and now show taxable removals by total volume. Federal reporting improves production visibility but does not establish food status for recovered grain across commercial applications. Regional logistics and preventive controls remain essential for programs expanding beyond nearby brewery partnerships into several states. Multi-state distribution increases freight exposure and requires clear chain-of-custody responsibility across every contracted commercial handoff.
• Belgian developers must determine whether a recovered material follows ordinary food rules or requires novel-food authorization for its intended use. Belgium's upcycled beverage ingredients market is estimated to post 7.7% CAGR over the forecast period, shaped by brewery density and formal authorization pathways. Belgian Brewers reported in June 2026 that the national brewery count fell from 411 to 395 during 2025. The remaining brewery base provides varied feedstock sources, although contraction reduces diversification across local collection routes. Wet grain also competes with established animal-feed outlets that accept material without additional food-grade processing steps. Cross-border sourcing adds documentation whenever the same material changes its process or intended food application.
• Danish operators can connect breweries with food processors through short transport routes and established side-stream handling relationships. Denmark's upcycled beverage ingredients market outlook is anticipated to advance at 8.9% CAGR over the assessment period, reinforced by compact collection routes and active ingredient development. Statistics Denmark reported in June 2026 that beer sales reached 354 million liters in 2025 and declined 2.6% annually. Available volume supports regular collection, although slower sales can limit residue growth across established brewery networks. High drying energy can erase the value recovered from grain, so food processors must control operating costs. Denmark's limited domestic scale restricts feedstock diversification beyond regional brewing partners and established collection relationships.

Who are the notable companies in the upcycled beverage ingredients (spent grain & surplus) market?

Upcycled Foods, Agrain, Biograin, Toast Brewing, CRUST Group, Local Brewing, Brew'dBites, and Beer Bites shape the competitive field.

The competitive field spans ingredient processors and finished-product developers with different control over side-stream collection. Upcycled Foods and Agrain sell standardized grain ingredients across several food applications and commercial formats. Biograin focuses on wet-grain stabilization through direct brewery partnerships and its patented method for preparing food-grade spent grain. Toast Brewing and Local Brewing convert surplus bread or produce directly into retail beer through licensed production routes. CRUST Group applies surplus inputs across alcoholic and nonalcoholic drinks through partnerships in Asian markets. Brew'dBites and Beer Bites collect brewing grain for regional snack products linked to named breweries. Food manufacturers should compare protein ingredients through feedstock control and application support rather than company size.

• Upcycled Foods and Agrain offer ingredient portfolios that support bakery or beverage development beyond one finished-product category. Their strength depends on technical documentation and repeatable batch specifications across several manufacturing applications and customer production settings. Multiple formats let food companies select flour or protein functions without changing the underlying recovered source.
• Biograin and Brew'dBites maintain direct brewery relationships that reduce collection uncertainty for wet spent grain. Their regional focus can improve service response but limits immediate coverage across multinational food networks. Direct collection improves feedstock visibility and clarifies responsibility for wet-material handling across every participating brewery relationship.
• Toast Brewing and CRUST Group join Local Brewing and Beer Bites in using finished products to test consumer applications. Their models provide visible retail routes but offer limited ingredient customization for external food manufacturers. Finished products can demonstrate consumer acceptance without proving performance across unrelated commercial formulations or manufacturing systems.

Competitive Benchmarking: Upcycled Beverage Ingredients (Spent Grain & Surplus) Market

Company	Feedstock Control	Ingredient and Product Breadth	Commercialization Support	Geographic Reach
Upcycled Foods, Inc.	Medium	High	High	United States
Agrain	High	High	Medium	Europe
Biograin ApS	High	Medium	Medium	Denmark
Toast Brewing	Medium	Low	Medium	United Kingdom
CRUST Group	Medium	Medium	Medium	Singapore and Japan
Local Brewing Co.	Low	Low	Low	Australia
Brew'dBites	Medium	Low	Low	Netherlands
Beer Bites	Medium	Low	Low	Ecuador

Scoring basis: Feedstock Control is High for direct collection supported by documented stabilization or traceability across commercial batches. Medium reflects defined sourcing partnerships that provide regular access without direct control over every collection point. Low reflects one narrow local stream with limited evidence of repeatable sourcing across commercial batches. Ingredient and Product Breadth is High for several formats used across multiple applications and customer channels. Medium covers one platform serving several uses, whereas Low identifies one finished-product category with limited external customization. Commercialization Support is High for dedicated formulation or scale-up services across several project stages and production settings. Medium reflects documented commercial partnerships, whereas Low covers local product sales without technical support or scale-up evidence. Missing evidence does not qualify as Low, and ratings do not infer capability from company size or reputation.

Key Developments in the Upcycled Beverage Ingredients (Spent Grain & Surplus) Market

• In March 2025, Upcycled Foods and Misfits Market launched two private-label breads using ReGrained SuperGrain+ and Puratos sourdough. The partners developed Multigrain and Honey Wheat products for the Odds & Ends brand and online grocery customers. The launch connected spent-grain ingredient processing with formulation and direct grocery distribution through two named commercial products. Two commercial bread formats also provided a practical route for assessing repeat purchases beyond a limited product trial.
• In March 2025, Toast Brewing signed a licensing agreement that gave Freedom Brewery exclusive production and sales rights from May. Toast retained brand ownership, and both businesses remained separate throughout the new commercial production arrangement. The agreement expanded production certainty for beers that replace part of their malted barley with surplus bread. National brewing capacity also reduced the capital required for Toast to maintain wider commercial distribution.
• In April 2026, Klüh Catering served Brew Bites across 80 company restaurants during a two-week menu program. The company reported more than 21,000 meals and an overall satisfaction score of 4.29 out of 5. The rollout tested an upcycled spent-grain protein across several dishes and operating sites rather than one limited institutional trial. Continued menu placement also showed that the ingredient could progress from pilot use into recurring foodservice demand.
• In August 2025, CRUST Group began selling Breaking Bread Ale through four foodservice locations in Tokyo's Shimbashi and Toranomon area. The commercial beer uses surplus bread and fruit peels within a defined pale-ale formulation sold through participating venues. The launch expanded CRUST's Japanese route through several restaurant and retail settings rather than one promotional venue. Multiple locations provided broader evidence of distribution readiness across distinct foodservice conditions and customer service formats.

Key Players in the Upcycled Beverage Ingredients (Spent Grain & Surplus) Market

Ingredient Processing and Application Platforms

• Upcycled Foods, Inc.
• Agrain
• Biograin ApS

Upcycled Beverage Developers

• Toast Brewing
• CRUST Group
• Local Brewing Co.

Regional Snack and Grain Specialists

• Brew'dBites
• Beer Bites

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market - Report Scope

Coverage field	Report scope
Market breakdown	Source, product, application, and region.
Quantitative Units	USD Million
Market Definition	Food and beverage ingredients or finished beverages produced from brewer's spent grain, surplus bread, and fruit-processing residues through controlled collection and food-grade conversion.
Regions Covered	North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East and Africa.
Countries Covered	UK, Germany, USA, Belgium, and Denmark, with additional country coverage in the full report.
Key Companies Profiled	Upcycled Foods, Agrain, Biograin, Toast Brewing, CRUST Group, Local Brewing, Brew'dBites, and Beer Bites.
Forecast Period	2026 to 2036.
Approach	Hybrid bottom-up and top-down market sizing supported by primary interviews and official desk research.

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market - Research Methodology

Method	Approach
Primary Research	FMI analysts gathered input from manufacturers, service providers, technology developers, distributors, end users, procurement teams, and subject-matter experts. Interviews examined purchasing decisions, product or service evaluation, adoption barriers, approval requirements, pricing considerations, and expectations for technical or commercial support. Respondents were also asked what evidence is required before a trial, pilot, or initial order develops into regular purchasing.
Desk Research	Desk research covered government statistics, regulatory publications, trade data, industry associations, technical literature, standards, company filings, product information, and official corporate announcements. Sources were reviewed for relevance, publication date, geographic coverage, and consistency with the defined market scope. Claims relating to performance, applications, approvals, capacity, investment, and commercial activity were retained only when supported by credible public evidence.
Market Sizing and Forecasting	The market model combined the baseline value with historical performance, segment structure, pricing and volume indicators, adoption levels, company participation, and country-level demand conditions. Forecast assumptions considered economic activity, investment trends, regulatory developments, technology adoption, purchasing cycles, supply availability, and barriers to wider market use. Segment and regional estimates were reconciled before the final market total was calculated.
Data Validation	Estimates were checked against multiple independent indicators, including public data, company activity, trade patterns, industry developments, and findings from primary interviews. Validation also tested whether products, services, applications, and company revenues fell within the defined market boundaries. Adjacent categories, unsupported claims, overlapping revenues, and activities without direct market relevance were excluded to reduce double counting and maintain consistency across segments and countries.

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market by Segments

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market segmented by Source:

• Brewer's Spent Grain
• Surplus Bread
• Fruit Waste

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market segmented by Product:

• Beer
• Functional Ingredient
• Flour

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market segmented by Application:

• Beverages
• Bakery
• Snacks

Upcycled Beverage Ingredients (Spent Grain & Surplus) Market by Region:

• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• Western Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Benelux
  • Nordics
• Eastern Europe
  • Poland
  • Czech Republic
  • Romania
  • Hungary
• East Asia
  • China
  • Japan
  • South Korea
• South Asia and Pacific
  • India
  • ASEAN
  • Australia and New Zealand
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Türkiye
  • Israel

Research Sources and Bibliography

• Eurostat. (2025, August 1). Beer production increases to 34.7 billion litres.
• Federal Public Service Health, Food Chain Safety and Environment. (2025, January 31). Nouvelles lignes directrices pour les nouveaux aliments.
• RISE Research Institutes of Sweden. (2025, March 25). New project investigates how by-products from beer brewing can be used in food on a large scale.
• Toast Brewing. (2025, July 18). Breakfast Club with St Austell.
• Alfa Laval. (2025, May 19). Here for the beer: upcycling sustainable protein from brewer’s spent grain.
• European Commission, Directorate-General for Environment. (2025, October 16). Revised Waste Framework Directive enters into force to boost circularity of textile sector and slash food waste.
• Agrain. (2025, December 12). ‘A very good idea’: A brewmaster’s perspective on upcycling spent grain.
• Upcycled Foods, Inc. (2025, March 27). Upcycled Foods, Inc. diversifies ingredient portfolio with first line of upcycled whole raisins for commercial market.
• Department for Environment, Food & Rural Affairs. (2025, March 31). New rules simplifying recycling for workplaces in England come into force.
• Federal Statistical Office of Germany. (2026, February 2). Beer sales down in 2025.
• Alcohol and Tobacco Tax and Trade Bureau. (2026, June 29). Beer Reports.
• Belgian Brewers. (2026, June 22). Belgische Brouwers vragen ademruimte om te kunnen blijven ondernemen en innoveren.
• Statistics Denmark. (2026, June 19). Der blev solgt lidt mindre øl, vin og spiritus i 2025.
• Upcycled Foods, Inc. (2025, March 3). Upcycled Foods, Inc. and Misfits Market launch first upcycled breads for grocer’s private label.
• Toast Brewing. (2025, March 12). Taste Freedom and raise a Toast.
• Klüh Service Management. (2026, May 21). Smarte Proteine im Betriebsrestaurant: Erfolgreiche Aktionswochen mit Brew Bites.
• CRUST Group. (2025, August 28). 〖TORANOMON JUST RIGHT NEW FOOD〗新橋・虎ノ門エリアでCRUST Japan(株)のアップサイクルビールを販売します！
• Upcycled Foods, Inc. (n.d.). Scaling Food’s Circular Economy.

This bibliography is provided for reader reference and is not exhaustive. The full report contains the complete reference list and detailed citations.

This Report Answers

• How large is the upcycled beverage ingredients market in 2026 and 2036?
• Which collection and stabilization conditions convert brewery or bakery side streams into food-grade ingredients?
• Why does brewer's spent grain hold the leading source position in 2026?
• How does beer influence commercial demand within the product category?
• Why do beverages represent the leading application share in 2026?
• How do growth rates differ across the UK, Germany, USA, Belgium, and Denmark?
• Which companies provide ingredient processing or finished-product commercialization routes?
• How do microbial stability and variable composition limit broader market adoption?
• What should product developers evaluate before contracting an upcycled ingredient source?