In an era marked by the need for sustainable food production, Hubcycle, a French upcycling scaleup, continues to set a compelling example in transforming food industry by-products into valuable, eco-friendly ingredients. Recently, the company reached a significant milestone, announcing its third funding round and securing €15 million. This funding is pivotal in helping Hubcycle expand its operations globally and solidify its leadership in the food upcycling sector.
Creating Value from Waste: The Hubcycle Approach
Food waste is a major contributor to greenhouse gas emissions, responsible for around 10% of emissions globally, with a financial toll of $2.6 trillion each year. In France alone, 10 million tons of food are wasted annually, valued at €16 billion. Hubcycle’s mission to transform food by-products into marketable ingredients tackles this issue directly, turning what would otherwise be waste into valuable resources. This transformation of waste into functional ingredients highlights the potential of upcycling to reshape supply chains, cut costs, and reduce environmental impacts.
Founded in 2016 by Julien Lesage, Hubcycle initially began as a marketplace linking by-product suppliers with potential buyers. Over time, it evolved into a full-fledged ingredient provider with a catalog of over 300 upcycled ingredients. By transforming food industry side-streams—currently estimated to make up 50% of all food inputs—Hubcycle creates sustainable solutions and helps offset the rising costs associated with conventional ingredients.
Leveraging Technology to Drive Innovation in Upcycling
With €15 million in new funding, Hubcycle is expanding its technological capabilities to refine its ingredient development processes. Each by-product has specific attributes that Hubcycle analyzes through data-driven methods, processing over 800 data points for each waste source to determine its potential as an upcycled ingredient. This use of data not only improves the quality of the final product but also aligns with the demand for more sustainable supply chains—an increasingly urgent issue as global food production must increase by 70% to feed a projected 9 billion people by 2050.
By equipping its labs with sophisticated testing and analytical tools, Hubcycle aims to develop 400 additional ingredients while identifying 4,000 new waste sources. These advancements help establish a standardized upcycling approach that meets the highest industry certifications.
“Hubcycle’s innovative approach to upcycling food by-products is not just a significant business opportunity, but a crucial step towards addressing the global challenges of food waste and climate change. Their technology has the potential to transform the food industry, creating a more sustainable and efficient supply chain. — Remy de Tonnac, Senior Partner, ETF Partners
A Growing Market for Food Upcycling
As food waste accounts for nearly 30% of cultivated land and 20% of industrial waste alone, upcycling represents a critical area for growth and environmental impact. A recent study estimated that by-product use generated $46.7 billion globally in 2019, illustrating both the economic opportunity and sustainability impact of upcycling initiatives. With 39% of consumers now looking for foods containing upcycled ingredients—and 57% planning to buy more in the future—upcycling is rapidly gaining traction as a viable solution to the food waste problem.
Hubcycle’s business model addresses these demands, providing cost-effective ingredients that compete with traditional options while contributing to reduced waste across the food supply chain.
Expanding Internationally: Strategies and Challenges
Hubcycle’s ambition to become a global leader in agro-industrial upcycling is a logical next step given the rising demand for sustainable solutions. Establishing a global footprint, however, involves navigating regulatory standards that vary by country. Each market brings unique compliance requirements, and Hubcycle plans to form local partnerships to adapt its operations accordingly. With its international expansion, Hubcycle aims to surpass 10,000 tons of CO2 emissions avoided, aligning with its clients’ sustainability goals while helping to address the environmental costs of food production.
“This new fundraising will enable us to accelerate Hubcycle’s R&D capabilities, positioning us as an international reference in food upcycling.” — Julien Lesage, President and Founder of Hubcycle
Examples of Upcycled Ingredients and Their Impact
Hubcycle’s catalog spans ingredients such as black pepper, coriander seeds, and natural thickeners—each sourced from plant-based side-streams. These ingredients not only match the quality of traditional ones but often come at a 20–30% lower cost, making them competitive alternatives for companies looking to optimize their operations and reduce costs.
Hubcycle’s approach is also highly flexible, capable of tailoring ingredients to meet specific functional needs, such as natural flavor extracts or texturizers for food applications. These examples underscore Hubcycle’s role in making high-quality, sustainable ingredients more accessible across industries.
Hubcycle’s upcycled ingredients enable clients to meet sustainability targets while reducing costs.
Traditional supply chains often rely on raw materials that are resource-intensive and susceptible to price volatility. In contrast, Hubcycle’s ingredients are derived from existing by-products, providing a 20% cost reduction on average compared to conventional ingredients. For companies aiming to decrease their environmental footprint, Hubcycle offers an effective way to reduce waste and lower emissions while meeting consumer demand for sustainable products.
A Vision for the Future of Upcycling in Food
Hubcycle’s long-term vision is to integrate food industry by-products as primary sources of sustainable ingredients. Founder Julien Lesage sums up this mission: “This new fundraising will enable us to accelerate Hubcycle’s R&D capabilities, positioning us as an international reference in food upcycling.” By advancing its upcycling methods and expanding internationally, Hubcycle is laying the groundwork for more circular, efficient supply chains that can meet the demands of a growing global population.
As Hubcycle scales, it aims to support global food supply chains in reducing their reliance on new resources, minimizing waste, and embracing circular economy principles. In doing so, Hubcycle hopes to set a model for the future of food upcycling and help drive industry-wide transformation towards more sustainable practices.
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