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Top 5 startups turning food byproducts into circular economy success stories.

  • April 3, 2025
  • Blog

Unlocking the hidden value of waste in the agrifood system

As the agrifood industry faces mounting pressure to become more sustainable, the conversation around food waste is shifting. Instead of seeing byproducts as residues to be discarded, a growing number of innovators are treating them as valuable raw materials for the next generation of food, ingredients, packaging, and more.

According to the FAO, nearly one-third of all food produced globally is lost or wasted. Beyond the environmental footprint, this also means a massive underutilization of resources—water, land, labor, and energy. Governments and institutions are responding: in the EU, for example, the Waste Framework Directive encourages member states to prioritize waste prevention, reuse, and recycling, while the Farm to Fork Strategy reinforces the goal of a circular and resource-efficient food system.

In this context, food byproducts are gaining recognition not as waste, but as a springboard for circular innovation—and startups are leading the way.

Here are 5 companies redefining what food “waste” can become:

Kaffe Bueno |Denmark| – upcycles spent coffee grounds into high-performance ingredients for cosmetics, nutraceuticals, and functional foods. Using green chemistry and biotechnology, they extract natural lipids, antioxidants, and fibers—maximizing the value of one of the world’s most consumed commodities.

Outlander Materials |Netherlands| – transforms brewers’ spent grain into plastic-free, compostable materials. Their technology repurposes one of the beer industry’s largest waste streams into eco-friendly alternatives for single-use plastics, reducing both food and packaging waste.

Impact Food  |Spain| -develops plant-based seafood alternatives using novel protein structuring technologies. Their flagship product, vegan tuna, mimics the taste and texture of fish while promoting ocean sustainability and reducing reliance on overfished marine species.

Koorvi |Germany| – offers a SaaS platform enabling consumer goods companies to easily implement circular trade-in programs. By providing full transparency across the product lifecycle and connecting businesses with a network of recovery partners—including resellers, refurbishers, and recyclers— simplifies the management of returns, refurbishment, resale, and recycling.

Circularr develops blockchain-powered solutions to track and verify plastic waste throughout the recycling process. Their platform incentivizes responsible disposal and supports the creation of closed-loop recycling systems for a circular plastic economy.

These startups are proof that circularity isn’t limited to a single material or industry—it’s a mindset that can be embedded across all production lines. Whether through biotechnology, digital platforms, or material science, innovative solutions are unlocking the hidden value of byproducts and turning waste into new opportunities. As technology continues to evolve, the potential to reimagine food system residues as high-value resources will only grow—paving the way for a truly circular and resource-efficient agrifood economy.

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