Broken Rice and Tuna Broth Find New Markets: Food Companies Experiment with By-Products
A Shift in Approach Brings Cost Savings and New Revenue Streams
The perception of "waste" is changing in the food industry. Byproducts, once seen as symbols of disposal costs and regulatory burdens, are now being re-evaluated as new sources of revenue. This shift goes beyond ESG (Environmental, Social, and Governance) activities, as more companies are improving their cost structures and connecting byproduct utilization to new business opportunities.
The food industry generates large amounts of byproducts such as peels, scraps, and residues during the processing of raw materials. Traditionally, companies have either sold these byproducts as animal feed or classified them as waste to be handled by external contractors. Recently, the approach has shifted from "how to dispose of them" to "how to utilize them." Strategies now focus on reusing byproducts as raw materials or converting them into products, ingredients, or energy sources, aiming to reduce costs and generate revenue at the same time.
According to a recent resource circulation casebook published by the Korea Food Industry Association on December 19, CJ CheilJedang is expanding upcycling of food byproducts into a new business. In October 2021, the company approved the commercialization of food upcycling snacks and, through its in-house venture program "inno100," launched its first product, "Excycle Crispy Chips," in April 2022. This product utilizes broken rice generated during the Hetbahn production process and features a non-fried process for a crispy texture, as well as high protein content equivalent to one egg, setting it apart as a healthy snack. Within just 10 months of its launch, cumulative sales reached 200,000 bags, gaining traction in the domestic market. Since December 2023, exports have expanded to the United States, Malaysia, and Hong Kong. Last year, the product was also introduced at Costco in Australia.
A CJ CheilJedang representative stated, "There is a rapidly growing trend in the global market that values sustainability and health," adding, "We see upcycling not just as an environmental choice but as a business opportunity." In addition, CJ CheilJedang invested in the upcycling food startup "Reharvest" in 2021 and developed "Re:nergy Flour," an alternative flour using wheat bran generated during the milling process. This flour has been applied to Reharvest's healthy bread brand "Rebake." The representative also said, "We are systematically analyzing resources discarded during the food manufacturing process to review their technical and economic potential for utilization. We will continue to expand the structure of converting food byproducts into high-value-added resources through upcycling."
Dongwon F&B is also expanding its resource circulation business by converting byproducts from tuna processing into high-value-added food ingredients. The broth generated during canned tuna production was previously treated mostly as wastewater, incurring disposal costs. Dongwon F&B, however, recognized that this broth contains beneficial components such as omega-3, calcium, and anserine, as well as rich flavor compounds, and has been processing it into tuna concentrate and tuna sauce.
A Dongwon F&B representative explained, "Only 30-40% of tuna is used for canning or sashimi, with the remainder discarded as byproducts. The broth accounts for about 15% of the raw material, but most of it has been discarded." He continued, "We standardized the process of heating and concentrating the broth and have commercialized the concentrate since 1997. Since last year, we have also developed tuna sauce using this broth." As of last year, the Changwon plant generated approximately 700 tons of tuna broth annually. By turning this into a resource, Dongwon F&B reduced the amount of wastewater by more than 100 tons and significantly cut waste disposal costs.
Changes are also taking place in the agricultural sector. KGC Ginseng Corporation has addressed the issue of waste shade nets generated during ginseng cultivation. These nets, which are difficult to separate for recycling and costly to dispose of, were often left unattended or illegally incinerated. The company collaborated with farmers to collect the waste nets and upcycled them into ginseng support poles through recycling companies. It supported collection costs and worked with the Ginseng Agricultural Cooperative to encourage farmer participation.
As a result, approximately 793 tons of agricultural waste were processed last year, reducing carbon emissions and easing the waste disposal cost burden for farmers. The company stated, "We plan to continue expanding models that turn various byproducts generated in the agricultural field into resources."
Park Jinseon, Chairman of the Korea Food Industry Association, said, "Resource circulation is no longer a choice but a core competitiveness that determines the sustainable growth of the food industry. Companies taking the initiative in resource reduction and transitioning to a circular economy are setting industry standards, which is driving resource circulation policies and the industry as a whole."
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