Paying More for Scraps? Understanding The True Value of Upcycled Pet Ingredients

The pet food industry is starting to confront the dual challenge of minimizing environmental impact while advancing animal health, and upcycled ingredients are emerging as a game-changing solution.  

These ingredients, sourced from by-products of food production such as spent barley from breweries, eggshells from food processing facilities, and fish trimmings from seafood operations, are helping manufacturers address food waste while also delivering functional nutritional benefits. Once destined for landfills or low-value applications like compost or biofuel, these materials are now being upcycled into premium pet nutrition components, unlocking hidden value from existing supply chains and helping build a more circular, sustainable food system. 

From Waste to Wellness: What Are Upcycled Ingredients? 

Upcycled ingredients are defined as repurposed ingredients that would otherwise be waste. The only distinction between them and traditional feed ingredients is their origin: rather than being grown or harvested explicitly for pet food, they are secondary products (also called by-products) from animal parts not consumed by humans, surplus produce, and leftover foodstuff from industries such as juicing and brewing.  

Traditionally regarded as by-products and often viewed negatively as cheap ingredients for pet food, their nutritional potential has often been underestimated. We are now recognizing the benefits of using these waste products. This practice not only reduces waste but also cuts down on the environmental burden associated with sourcing virgin ingredients.  

Upcycling helps extract every bit of value from food resources that are already in use, potentially leading to outcomes such as reducing greenhouse gas emissions, minimizing water use, and enhancing land efficiency by extracting every last bit of nutrition from the ingredient—rather than letting those nutrients waste away in a landfill. 

The Upcycled Paradox: Why Pay More for Waste?  

Upcycled ingredients often carry a higher price tag, which can seem surprising and off-putting considering they are food by-products or surplus materials. This added cost reflects the multifaceted complexity of transforming upcycled materials into safe, consistent, and nutritionally valuable ingredients. Unlike traditional waste disposal, upcycling requires a series of additional steps, such as stabilization, quality testing, and specialized processing, to meet safety and nutritional standards. These processes demand dedicated equipment, skilled labor, and ongoing research, all of which significantly increase production costs.  

Further compounding these expenses are small batch sizes and more frequent transportation needs, manufacturing modifications to accommodate non-traditional inputs, and the implementation of standardized procedures to ensure quality control. Meaningful investment in innovation, marketing, and consumer education is necessary to build awareness, drive acceptance, and communicate the value of these upcycled ingredients to both retailers and end consumers.  

Additionally, many upcycled ingredient suppliers are smaller, innovative companies operating at a limited scale, which means they do not yet benefit from the cost efficiencies that come with mass production. This often results in higher per-unit costs and more complicated logistics. Further, many upcycled products are certified through third-party organizations, which requires money, documentation, and audits to ensure that the product’s sustainability claims are legitimate. 

Despite the higher cost, purchasing products that use upcycled ingredients offers meaningful benefits for both the environment and pet health. Environmentally, upcycling diverts valuable food materials from landfills, reducing methane emissions and conserving the resources used to produce that food, such as land, water, and energy. It supports a more circular economy where waste is minimized and resources are used efficiently.  

Nutritionally, many upcycled ingredients provide real value, including high fiber, protein, or bioactive compounds. For example, fruit pomace can support digestive health, and spent brewer’s yeast is often used as a palatability enhancer or as prebiotic fiber. Choosing products with upcycled ingredients also supports innovation in sustainability and signals to the industry that consumers care about reducing waste. While they may be more expensive today, these purchases may help scale the market and drive long-term affordability.  

While the promise of upcycled ingredients is compelling, their inclusion in pet food products must also be supported by careful formulation and regulatory oversight. Ingredients must still meet rigorous safety standards, including those outlined by the Association of American Feed Control Officials (AAFCO) and the US Food and Drug Administration (FDA). Nutrient variability, shelf stability, and palatability are among the challenges that formulators must address. For instance, while spent grains can add valuable fiber and protein, they may also introduce variability in moisture content or require stabilization to prevent spoilage. Similarly, fish trimmings must be handled carefully to avoid rancidity and off-flavors that could deter pets from consuming the food. 

Transparency is essential for building trust in upcycled pet food ingredients. As sustainability-minded consumers grow more open to novel inputs, brands must clearly communicate the origin, processing, and purpose of these materials. Certification programs like the Upcycled Food Association’s (UFA) help validate these claims by setting clear standards for sourcing, safety, and quality, giving both consumers and retailers confidence in the products. UFA certification also supports consistent messaging, strengthens marketing, and simplifies ingredient evaluation for manufacturers, making it a critical tool for scaling innovation while ensuring transparency and accountability. 

Nutritional Comparisons: Traditional vs. Upcycled Ingredients 

Upcycled ingredients are not only environmentally responsible but can also offer nutritional benefits. For instance, spent barley, a by-product of beer production, is highly nutritious. The brewing process extracts sugars from the grain for fermentation, leaving behind material that is rich in protein, insoluble fiber, and B vitamins. The fiber content of spent barley can promote gastrointestinal health and support satiety, which is beneficial for overweight pets. Additionally, it can help maintain acceptable levels of crude protein, making it a valuable component in weight management or digestive support formulas. 

Eggshells provide another example. Traditionally, calcium in pet food has been sourced from limestone or calcium carbonate. However, finely ground eggshell powder offers a bioavailable form of calcium that also contains trace minerals such as magnesium, strontium, and fluoride. These minerals may support bone mineralization and skeletal health. Some studies suggest that calcium from eggshells may be absorbed more efficiently than synthetic sources, especially when paired with appropriate levels of vitamin D. 

Fish trimmings, often discarded, are the leftover parts of fish after the filleting process in seafood manufacturing plants. These trimmings can be a valuable source of long-chain Omega-3 fatty acids eicosapentaenoic acid (EPA), and docosahexaenoic acid (DHA), which are beneficial for skin and coat health, anti-inflammatory support, and cognitive development in puppies. While fish oil has long been used in pet diets, incorporating upcycled fish trimmings allows formulators to retain protein content along with beneficial fats.  

BSM Partners: Driving Innovation Through Upcycled Ingredients 

BSM Partners is at the forefront of this movement, supporting pet food brands that want to incorporate upcycled ingredients into their product lines. Our Nutriton and Innovation team assists companies in researching, evaluating, and formulating diets using a wide range of upcycled ingredients. Their expertise spans every stage of development, from feasibility assessments and nutrient analysis to full-scale formulation tailored to life stage, breed, and functional health targets. 

In addition, BSM Partners’ Veterinary Services team provides extensive regulatory and scientific expertise to assist clients in navigating the complex pathway of new ingredient approvals. Whether it involves working with AAFCO, submitting GRAS notifications, or compiling safety dossiers, BSM Partners is uniquely equipped to help introduce novel upcycled ingredients to market in a compliant and scientifically robust manner. 

For those interested in learning more, BSM Partners’ Media team is gearing up to release a new episode of the Barking Mad podcast that explores the real-world application of upcycled ingredients in pet food, featuring insights from ingredient developers, nutritionists, and product formulators. The episode sheds light on practical considerations such as sourcing, palatability, shelf stability, and regulatory hurdles, making it a must-listen for industry professionals looking to stay ahead of the curve and for curious pet parents looking to make a positive impact on pet health and the planet. Tune in today!

More Than a Trend—A Transformative Opportunity 

Upcycled ingredients represent a rare win-win in the pet food industry: a meaningful way to reduce environmental impact while enhancing the nutritional value of pet diets. With thoughtful formulation, robust science, and transparent communication, they provide an opportunity to reshape pet nutrition for the better.  

BSM Partners continues to lead the way, empowering pet food brands to embrace sustainability without compromising product performance or pet wellness. As pressure mounts to feed more animals with fewer resources, the ability to transform what was once waste into wellness is not just an innovation; it’s a necessity. 

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About the Author

Dr. Katy Miller works as the Director of Veterinary Services at BSM Partners. She earned her veterinary degree at Ross University and completed her clinical year at Louisiana State University. She previously served for 11 years as the Director of Dog and Cat Health and Nutrition for Mud Bay where she earned multiple certifications and specialized in pet food nutriton, prior to which she practiced general and emergency medicine for seven years. She is also a competitive three-day eventer, licensed falconer, and claims only two (Golden and Mini Doxie) of their nine dogs.