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The food and beverage sector (F&B), including processing, is responsible for approximately 15-20% of global GHG emissions[1]. In general, food processing involves converting raw materials (normally agricultural products) into consumer-ready products, requiring energy intensive processes, packaging, distribution and generating significant amounts of by-products, normally disposed and treated as waste. Around 100 million tonnes of food waste and residues are generated each year in the EU, with approximately 38% occurring at the processing stage[2].

The demand for food is expected to rise significantly by 2050 due to the growing global population, which is projected to reach approximately 9.7 billion people by that time. To meet the nutritional needs of this larger population, global food production is projected to rise by around 60-70% by 2050[3]. This means that food systems must adapt to feed an additional 2-3 billion people.

Therefore, there is a clear need to transform the food and beverage industry towards sustainability to handle the growing food demand while remaining within the ecological planetary boundaries.

How circular economy can transform Food and Beverage industry towards sustainability

Circular economy arises as a discipline where resources never become waste and nature is regenerated. In the Food & Beverage (F&B) industry, applying circular economy principles can reduce environmental impact while increasing yields and productivity.

Circular Economy Principles (Source: RECAPP)

3 ways to apply circular economy principles in the Food & Beverage (F&B) industry are outlined below:

By-products revalorisation

Food by-products such as fruit and vegetable peels, spent grains, husks, skins, seeds, etc. are rich in valuable bioactive compounds, including proteins, fibres, polyphenols and antioxidants among others. These compounds offer a wealth of potential for various applications, from enhancing food products to creating sustainable materials.

Revalorizing these by-products creates value across various industries, including agriculture, packaging, biofuels, cosmetics, and textiles. This process holds significant potential for both economic growth and positive environmental impact as the global upcycled food products market is expected to reach $97 billion by 2031[4] and food waste contributes about 8–10% of global GHG emissions[5] and significant water savings (e.g., roughly 250 km³ of freshwater is wasted annually due to discarded food, including at the processing stage[6]).

Sustainable Packaging

Organic food and beverage waste, like food scraps and by-products, can be converted into energy through biogas production or composting, with the potential to be used to power production facilities and energy production, reducing reliance on fossil fuels like oil. On average, 1 ton of food waste can generate about 100 to 150 cubic meters of biogas, depending on the type of and this volume of biogas can produce 2.5 to 3.5 MWh of electricity[9].

Efficient Resource Utilization

Food waste and packaging waste from the food and beverage industry have significant potential for upcycling into new, sustainable products. For example, food scraps and leftovers can be transformed into biodegradable packaging materials, creating a circular system that minimizes waste and reduces environmental impact. Materials such as rice husks, mushroom roots, fruit peels, and corn starch are prime examples of food by-products that can be upcycled into eco-friendly packaging alternatives. This approach could significantly reduce the environmental impact of food and beverage industry as plastic packaging alone accounts for about 3.8% of global GHG emissions[7]. Moreover, switching to biodegradable alternatives—especially those derived from food waste—can lead to a reduction in emissions by up to 30–60% compared to conventional plastic packaging, contributing significantly to lowering overall carbon footprints.[8]

About CHEERS project

The CHEERS project (GA No. 101060814) funded by the European Union under the topic “HORIZON-CL6-2021-CIRCBIO-01” aim to develop a new biorefinery concept inspired on nature biodiversity (insect and microbial platforms), to sustainably and efficiently upgrade underused or waste side-streams such as bagasse, wastewater, CO2 and CH4 from bio-based industries into innovative bio-based products: insect protein, disinfectant, microbial protein, ectoine and caproic acid.

The beer company Mahou San Miguel is project coordinator and exploitation leader jointly with 11 partners of 5 European countries, including technology suppliers, end-users and research entities.

[1] FAO. (2019). The state of food and agriculture: Moving forward on food loss and waste reduction. Food and Agriculture Organization of the United Nations. https://www.fao.org/state-of-food-agriculture/en/

[2] Funding Aid Strategies Investments (2016). BBI-2016-F01: Valorisation of by-products or waste-streams from the food processing industry into high added-value products for market applications. https://fasi.eu/en/grants/064b8e54-5133-3fca-9c22-d4511e01f3f8?utm

[3] FAO (Food and Agriculture Organization). (2017). The future of food and agriculture: Trends and challenges. Food and Agriculture Organization of the United Nations. https://doi.org/10.18356/c84c735b-en

[4] Allied Markey Research (2023). Upcycled food products Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, By Source, By Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2021-2031. https://www.alliedmarketresearch.com/upcycled-food-products-market-A53592?

[5] UNFCCC (2024) Food loss and waste account for 8-10% of annual global greenhouse gas emissions; cost USD 1 trillion annually. https://unfccc.int/news/food-loss-and-waste-account-for-8-10-of-annual-global-greenhouse-gas-emissions-cost-usd-1-trillion?utm

[6] UN Environmental Programe (2013). Food waste harms climate, water, land and biodiversity – new FAO report. https://www.unep.org/sw/node/6225

[7] Knowplastics. Plastic is responsible for 3.8% of global greenhouse gas emissions. https://knowplastics.org/plastic-is-responsible-for-3-8-of-global-greenhouse-gas-emissions/

[8] Mosomi, E.K., Olanrewaju, O.A. and Adeosun, S.O., 2024. Pivotal role of polylactide in carbon emission reduction: A comprehensive review. Engineering Reports, p.e12909.

[9] Wikipedia contributors. (n.d.). Biogas. Wikipedia. Retrieved February 17, 2025, from https://en.wikipedia.org/wiki/Biogas