The utilization of side streams and by-products offers significant potential for creating value, reducing waste, and meeting sustainability goals across various industries. And the bio-based products offer is aligned with sustained consumer demand for more sustainable and natural ingredients in these industries.

The industrial processing of plant-derived raw materials generates significant amounts of by-products, which present both disposal challenges and opportunities. These by-products contain valuable compounds such as secondary plant metabolites and cell wall materials that can be recovered and used as functional ingredients in foods, replacing synthetic additives with natural alternatives. Although there have been numerous studies on the utilization of side streams, only a few processes have been implemented on an industrial scale for now.

There are many drivers for businesses to valorize these side streams:

  • Meeting corporate social responsibility and promoting green credentials.
  • Embracing the circular economy by reducing food waste and its negative impacts on the economy, food security, and available resources.
  • Reducing or offsetting waste processing costs.
  • Creating new products of value.
  • Increasing overall profitability, as demonstrated by the return on investment of companies engaged in waste valorization.

Successful examples of side-stream valorization include waste yeast from the brewery industry and whey from the cheese industry. Brewer’s yeast is now used to produce various fractions and compounds for different markets, such as food, feed, infant nutrition, supplements, biotechnology, and pharmaceuticals. Whey is processed to obtain demineralized or powdered whey, individual proteins, lactose, and fermentation metabolites, among other valuable products.

The food ingredients business is shifting from a single-ingredient approach to a biorefinery approach, where waste valorization is considered from the beginning of the value chain. This transition enables the creation of value-added products and aligns with sustainability goals. For example, Marmite, a popular spread in the UK made from the byproduct of yeast used in the brewing process, has become more valuable than the brewing industry itself.

However, there are costs associated with utilizing side streams, including transportation, storage, cleaning, and processing, that are reflected in the product’s final price. Locating the valorization unit near the waste-producing plant can therefore help companies mitigate transportation expenses, especially when dealing with food waste diluted in water.

When prioritizing side streams for valorization, several factors should be considered:

  • Pricing, as different markets may have varying price points for the same product.
  • Competition and the added value of the product compared to alternatives.
  • Volume and scalability of the process, as some markets require small volumes while others demand larger quantities.
  • Market shares and access to ensure market viability.
  • Customer needs and buying behavior, which may vary across different markets.
  • Regulatory status, including whether the ingredient falls under conventional ingredients, novel foods, traditional foods from a third country, or food additives (European regulations designations). Compliance with regulatory requirements can significantly impact commercialization timelines.

Valorizing side streams requires companies to explore markets beyond their core expertise and collaborate with partners from different industries and cross-fertilization between industries can lead to promising applications. Collaboration and a well-defined market access strategy are therefore crucial for success.