Bioactives from
Australian agrifood
by-products
Preliminary opportunity assessment
2025
Citation and authorship
CSIRO Futures (2025) Bioactives from Australian
agrifood by-products. CSIRO, Canberra.
This report was authored by CSIRO Futures, with
support from AgriFutures, CSIRO Agriculture and
Food and CSIRO Health and Biosecurity.
CSIRO Futures
At CSIRO Futures we bring together science, technology
and economics to help governments and businesses
develop transformative strategies that tackle their biggest
challenges. As the strategic and economic advisory
arm of Australia’s national science agency, we are
uniquely positioned to transform complexity into clarity,
uncertainty into opportunity, and insights into action.
AgriFutures Australia
AgriFutures Australia is a statutory authority of the
Australian Government responsible for research and
development to support rural industries without a
dedicated Research & Development Corporation, new
and emerging rural industries, and is responsible
for cross-sectorial initiatives to benefit all of
agriculture. AgriFutures Australia proudly focuses
on building a rich future for Australian agriculture
and their vision is to grow the long-term prosperity
of Australian rural industries and communities.
Accessibility
CSIRO is committed to providing web accessible
content wherever possible. If you are having
difficulties with accessing this document,
please contact csiro.au/accessibility
Acknowledgements
CSIRO acknowledges the Traditional Owners of the
land, sea, and waters of the area that we live and
work on across Australia. We acknowledge their
continuing connection to their culture, and we pay
our respects to their Elders past and present.
The project team is grateful to the stakeholders
who generously gave their time to provide
input, advice and feedback on this report.
Copyright
© AgriFutures 2025. To the extent permitted by
law, all rights are reserved and no part of this
publication covered by copyright may be reproduced
or copied in any form or by any means except
with the written permission of AgriFutures.
Disclaimer
CSIRO advises that the information contained in this
publication comprises general statements based on
research. The reader is advised and needs to be aware
that such information may be incomplete or unable
to be used in any specific situation. No reliance or
actions must therefore be made on that information
without seeking prior expert professional, scientific
and technical advice. To the extent permitted by
law, CSIRO (including its employees and consultants)
excludes all liability to any person for any consequences,
including but not limited to all losses, damages, costs,
expenses and any other compensation, arising directly
or indirectly from using this publication (in part or in
whole) and any information or material contained in it.
Executive summary
This report
CSIRO Futures was commissioned by AgriFutures Australia to identify preliminary opportunities for Australia’s
agriculture and food industries to supply bioactive raw ingredients to the complementary medicines industry.
This involved developing a model that estimated the potential supply of bioactives within byproducts across the
Australian agrifood sector, with insights supplemented and validated through interviews with experts across
research, industry and government. The report aims to drive industry development by raising awareness around the
potential scale of the opportunities and mapping out important next steps around assessing commercial validity.
Agricultural and food processing industries
generate large volumes of by-products
currently directed to low value uses.
These by-products often do not generate profits for
farmers or producers. Given the resources used to
grow these by-products, and in some cases, the cost of
managing them, together with a challenging business
environment for agriculture and manufacturing
in Australia, value-adding to these by-products
could represent diversified revenue streams.
Australia’s complementary medicines
industry is currently reliant on international
imports for almost all raw ingredients.
A key challenge faced by complementary medicines
manufacturers is an under-developed sovereign raw
ingredients industry. It is estimated that Australian
manufacturers import around $1 billion of raw materials
annually, representing around 99% of their requirements.1
The industry would value more options to onshore its
supply chain, should these options remain competitive
in terms of supply, price and quality. Driving this is the
desire to reduce vulnerability from geopolitical and climate
threats, and support sustainability claims of products.
Working together, there is an opportunity for agriculture
and food processors to divert by-products towards
the Australian and international complementary
medicines manufacturing industries by extracting
and isolating high value bioactive compounds.
Bioactive extraction from agricultural and food
by-products is an early-stage emergent industry
with very few commercial examples in Australia.
However, appetite exists from both sectors should
key metrics around quality and cost be met.
By focussing on by-products currently allocated to lower
value uses, a quantitative model was developed to
identify 30 preliminary opportunities which represent
high volume and value by-product stream / bioactive
combinations. Qualitative research was then undertaken
to provide initial assessments of technical maturity
and Australian commercial investment (Figure 1).
Figure 1: Opportunity analysis methodology
TechnicalmaturityCurrent Australianinvestment
Figure 1: Opportunity analysis methodology
1 NICM (2023) Securing the future of complementary medicines manufacturing in Australia. A strategic business case. Health Research Institute. Western
Sydney university. DOI: 10.26183/kj2q-ee25
Five prospective opportunities wereidentified for commercial validation
Prospective opportunities of untapped potential were
selected from the top 30 by considering where technical
progress has been demonstrated in some capacity, but
where relatively limited investment has been observed
in Australia (Figure 2). While there are more mature
opportunity areas (e.g., beef bioactives), these five
represent areas where further commercial analysis would
be valuable rather than duplicating existing analyses.
Consulted stakeholders provided furtherinsights into the development of the emergentbioactive extraction industry, including:
•Prioritising scale of supply, quality and price
is important. Dedicated innovative businesses
and new business models may be needed.
•A staged approach to reaching complementary
medicines grade outputs may derisk the scale-up
Figure 2: Prospective opportunities
(e.g., targeting functional food markets while
developing complementary medicines ingredients).
•Avoid short lived trends when identifying
candidate bioactive ingredients.
•Identifying areas at risk of climate disruption
may be strategically valuable.
•Collaboration between industries, R&D,
and enabling policies is critical.
Next steps: A structured approach is needed tovalidate commercial feasibility prior to investment.
Vital to progressing any opportunity is collaborationbetween potential suppliers (agriculture and
food processors) and complementary medicinesmanufacturers to ensure both are working towards
a shared understanding of supply quantities, quality
and pricing. A structured and staged approach
for assessing the commercial validity of identified
opportunities is provided within the report (Figure 3).
Polyphenols from sugarcane,
trash, bagasse and molasses
Collagen from chickentrimmings, bones and offal
Polyphenols fromcanola meal
Polyphenols fromolive pomace
Polyphenols from barley viaspent brewers grain
Figure 3: Stage gate approach to determining the commercial viability of prospective bioactive extraction opportunities.
Figure 3: Stage gate approach to determining the commercial viability of prospective bioactive extraction opportunities.
Bioactives from Australian agrifood by-products
Contents
Executive summary....................................................................................................................................i
Glossary ........................................................................................................................................................iv1 Industry drivers for agrifood by-product management.....................................................12 The complementary medicines market....................................................................................22.1 Global complementary medicines..........................................................................................................................22.2 Australian complementary medicines....................................................................................................................43 Extraction of bioactives from agricultural and food by-products...............................53.1 Current state of bioactive extraction.....................................................................................................................63.2 Why now?.................................................................................................................................................................84 Opportunities for Australian agrifood.......................................................................................94.1 Opportunity identification methodology..............................................................................................................94.2 Key findings ...........................................................................................................................................................104.3 Prospective opportunities ....................................................................................................................................184.4 Other emerging opportunities ............................................................................................................................264.5 Industry development insights..............................................................................................................................285 Next steps............................................................................................................................................30Appendix A – Consulted organisations.........................................................................................31Appendix B – Supply value analysis methodology.................................................................32Overview...........................................................................................................................................................................32Prioritising bioactives......................................................................................................................................................33Selecting by-product streams..........................................................................................................................................34Estimating the potential value of bioactives in by-product streams............................................................................34Validating value assumptions..........................................................................................................................................36Data limitations and scope exclusions............................................................................................................................36
Glossary
Agrifood
Agricultural production and food manufacturing/processing industries.
Bioactives
Compounds that are naturally present in food and that could exert a beneficial or toxic biological effect when
ingested. These compounds often have antioxidant, anti-inflammation, or antimicrobial properties or are
used to enhance the growth of beneficial microbes.2
Bovine
Relating to cattle.
By-products
Secondary materials generated during agricultural and food production and processing, that are directed to
uses other than the primary purpose.
By-product stream
The by-products generated at a stage of production or processing.
CAGR
Compound Annual Growth Rate.
Carotenoids
Naturally occurring yellow, orange and red pigment compounds found within plants. Certain carotenoids are
sources can be converted to vitamin A i.e. beta carotene. Carotenoids include, retinol, α-carotene, β-carotene
and equivalents, cryptoxanthin, xanthophylls (lutein and zeaxanthin).
Collagen
Collagen is the most abundant protein in the body, constituting 30% of the body’s total protein and is the
primary component of the skin matrix. Collagen has mechanical strength and moisture retention properties,
helping maintain strength, flexibly and structure of body tissue. There are over 29 types of collagens that
differ based on length of the internal triple helix structure and structure of non-helical portions. Type I is the
most abundant.3
Commodities
Raw or primary agricultural products.
Complementary
medicine
Low risk non-prescription medicines that include a wide array of products and ingredients such as vitamins,
minerals and herbal materials.4 Generally used for low level health indications (e.g., health enhancement
and maintenance, prevention of dietary deficiency, and non-serious ailments). In Australia, complementary
medicines are regulated by the TGA and are known as Listed Medicines.5
CoQ10
Coenzyme Q10 (CoQ10), also known as ubiquinone, is a fat-soluble vitamin like compound required by all
living organisms. It is present in food products and synthesised in tissue.6
Creatine
Made up from 3 amino acids: arginine, glycine, and methionine. A natural substance that accelerates muscle
growth.7
Essential Amino
Acids
Nine of the 20 common amino acids cannot be synthesised by mammals are essential in the diet. These
essential amino acids include histidine, isoleucine, leucine, lysine, methionine, phenylalanine, threonine,
tryptophan, and valine.
Extract
A substance manufactured by isolating or removing part of a raw material, often by using a solvent such as
ethanol, oil or water.
Hyaluronic acid
A natural polysaccharide present in connective tissues which is used to assist mobility and hydration for joints
and other tissues.8
Melatonin
A naturally produced hormone that helps regulate circadian rhythms and sleep. It is available within dietary
supplements from organic sources or synthetically.9
Minerals
Inorganic elements essential for maintaining proper metabolism.
2 Facilitated Advancement of Australia’s Bioactives (2022) What are Bioactives (accessed 22 April 2025)
3 Nuñez SM, Guzmán F, Valencia P, Almonacid S, Cárdenas C. (2020). Collagen as a source of bioactive peptides: A bioinformatics approach. Electronic Journal
of Biotechnology, 48, 101-108.
4 Therapeutic Goods Administration (n.d.a) Complementary medicines. Department of Health and Aged Care. (accessed 22 April 2025)
5 Therapeutic Goods Administration (n.d.b) Listed medicines. Department of Health and Aged Care. (accessed 22 April 2025)
6 Frost & Sullivan (2023) Global Nutraceutical Growth Opportunities: Increasing Consumer Awareness and Changing Dietary Habits, Post Pandemic, Drive
Future Growth Potential.
7 Frost & Sullivan (2023)
8 Pereira H, Sousa DA, Cunha A, Andrade R, Espregueira-Mendes J, Oliveira JM, Reis RL (2018). Hyaluronic acid. Osteochondral Tissue Engineering: Challenges,
Current Strategies, and Technological Advances, 137-153.
9 National Center for Complementary and Integrative Health (n.d.) Melatonin: What You Need to Know. National institute of Health. (accessed 30 April 2025)
Nutraceutical
A term generally used for products consumed for specific medicinal, health, wellness and/or additional
nutritional benefits (usually food-derived). This includes vitamins, supplements and minerals; fortified foods
(enriched with nutrients); and functional foods and beverages (contain ingredients offering health benefits).
Nutraceuticals often result from the convergence of food and pharmaceutical technologies.
Ovine
Relating to lamb.
Polyphenols and
phenols
A family of naturally occurring compounds primary characterised by having multiple phenol units. They are
plant secondary metabolites, known for their antioxidant functions linked to various health benefits. Subtypes
of polyphenols include phenolic acids, flavonoids, stilbenes and lignans.
Porcine
Relating to pigs.
Prebiotics
A type of non-digestible fibre compound that are can be metabolised by gut bacteria to promote their growth
and activity. These include prebiotics includes fructans (such as fructo-oligosaccharides and inulin), galacto-
oligosaccharides, polydextrose, resistant dextrin/maltodextrin, resistant starch, and xylo-oligosaccharides.10
Primary production
The production of raw materials for industry including businesses for plant or animal cultivation, fishing or
pearling, or tree farming or felling.
Primary, secondary
and tertiary
processing
Food processing stages to turn fresh foods into food products.
Primary processing is the conversion of raw materials to food commodities (e.g., milling). Secondary
processing is the conversion of ingredients into edible products (e.g., baking). Tertiary food processing
involves the manufacturing of complex foods like convenience and ready-to-eat foods, canned soups or frozen
dinners.11
Protein Ingredients
Protein ingredients assessed were from plant or dairy sources. These included plant protein sources such as
soy, wheat, rice, pea, lentil and bean. Dairy protein ingredients include whey protein, milk protein, and casein
and caseinates.12
Raw ingredient
Inputs to processing, mainly food items.
Raw material
Inputs to processing, can include food items.
Therapeutic Goods
Administration
(TGA)
Australia's government authority responsible for evaluating, assessing and monitoring products that are
defined as therapeutic goods.
Upcycling
Value-adding to by-products along the agriculture and food value chain so that they re-enter the food chain as
part of a new product.
Valorisation
Adding value to a product or service.
Vitamin
Organic compounds that are essential for normal growth and nutrition and are required in small quantities
in the diet because they cannot be synthesised by the body. They are classified as water and fat-soluble.
Water-soluble vitamins include vitamins B and C. Fat-soluble vitamins include vitamins A, D, E, and K.
10 Frost & Sullivan (2023)
11 BulkInside (2025) Food processing (accessed 22 April 2025)
12 Frost & Sullivan (2023)
1 Industry drivers for agrifood
by-product management
Australia’s agriculture and food processing industries
generate large volumes of by-products. These
by-products include produce that does not meet the
requirements of consumer markets (off-specification)
and non-edible streams from food processing (e.g., peel,
seeds, husks, leaves, bone, offal, etc.) (see Table 1).
Volumes of by-products can be variable, with larger
volumes seen both when conditions are favourable
(resulting in larger crops) or environmental conditions are
unpredictable (bad weather or increased pests resulting
in larger percentages of off-specification produce).
Agricultural producers and food processors always seek
to fully utilise these by-products; however, they are
often destined for lower value uses such as animal feeds,
compost, waste-to-energy recovery, or in some cases,
disposal to landfill. As by-products are diverted away from
consumer markets towards lower value uses, the nutrients
in these foods and food products are underutilised
and potential value unrealised. Foregone nutrients
represent both an ineffective use of the environmental
and economic resources used to produce the foods, as
well as the associated greenhouse gases produced.13
Across Australia’s agriculture and food processing industry,
consultations to inform this report (see Appendix 1)
highlighted that there is enthusiasm to see food by-products
diverted to higher value uses where it makes commercial
sense. In addition to mitigating the challenges described
above around improving the utilisation of Australian
grown foods, this opportunity could also create diverse
income streams for the agricultural and food sectors.
Other drivers leading producers and processors to consider
alternative uses of their by-products include a challenging
operating environment and the costs of by-product
management. The agricultural operating environment
has seen increased input costs drive the need for greater
efficiency and productivity on farms and across supply chains.
For example, fertilisers, chemicals, fuel, and labour costs have
all increased over the past few years.14 In the grain industry,
it is estimated that the average spend on inputs has more
than doubled over the past 10 years.15 Further, management
of certain by-products has associated costs and logistics
to avoid environmental impacts such as land degradation,
water pollution and higher greenhouse gas emissions.16
For example, the acidic nature of citrus waste can negatively
impact soil conditions and present broader ecological risks,
necessitating specialised management and offsite disposal.17
Table 1: Types and volumes of agricultural by-products
SUB-SECTOR
EXAMPLE BY-PRODUCTS
APPROXIMATE ANNUAL
BY-PRODUCT VOLUMES (2021)18
Broadacre crops
Grains, pulses, oil crops,
sugarcane
Crop residues such as stalks, leaves, straw, chaff;
harvest losses and unused cover crops. Bran,
meal, malt, hominy, bagasse, molasses, husks.
Primary production – 0.65M tonnes
Processing – 1.96M tonnes
Horticulture
Fruits, vegetables, nuts
Fallen fruit, vegetable trimmings, peels, seeds,
discarded foliage, and unmarketable produce.
Primary production – 1.03M tonnes
Processing – 1.37M tonnes
Livestock
Bovine, ovine, porcine
and poultry
Trimmings, blood meal, offal such as bones,
heads, organs and skins.
Processing – 1.69M tonnes
Animal product
Milk, eggs
Production losses of commodities, milk whey,
eggshells, manufacturing losses.
Processing – 2.52M tonnes
Fisheries
Fish, crustaceans, molluscs
Offal such as bones, heads and skins.
Processing – 0.016M tonnes
13 Hetherington JB, Juliano P, Macmillan C, Locj AJ (2022), Circular economy opportunities and implementation barriers for Australia’s food, feed, and fibre
production, Australian Farm Institute.
14 Parliament of Australia (2023) Australian Food Story: Feeding the Nation and Beyond. Inquiry into food security in Australia. House of Representatives.
Standing Committee on Agriculture. Commonwealth of Australia. https://parlinfo.aph.gov.au/parlInfo/download/committees/reportrep/RB000221/toc_pdf/
AustralianFoodStoryFeedingtheNationandBeyond.pdf
15 Hogan B (2024) Are rising input costs the biggest threat to farm profitability. Grains Research and Development Corporation. Australian Government.
< https://grdc.com.au/resources-and-publications/grdc-update-papers/tab-content/grdc-update-papers/2024/02/are-rising-input-costs-the-biggest-threat-to-
farm-profitability> (accessed 22 April 2025)
16 Tonini D, Albizzati PF, Astrup TF (2018) Environmental impacts of food waste: Learnings and challenges from a case study on UK. Waste Management, 76, 744-766.
17 Suri S, Singh A, Nema PK. (2022) Current applications of citrus fruit processing waste: A scientific outlook. Applied Food Research, 2(1), 100050.
18 Adapted from the FIAL Food waste baseline data dashboard: FIAL (2021) National Food Waste Strategy Feasibility Study. – Final Report (accessed 1 April 2025); Livestock, animal products and fisheries do not contain data from the farming stages.
2 The complementary
medicines market
Complementary medicines are low risk, non-prescription medicines used for improved health and wellbeing. They include
a wide array of products such as vitamins, minerals and herbal materials.19 Complementary medicines utilise raw materials
and ingredients that are artificially synthesised and those that can be naturally extracted from organic materials.
2.1 Global complementary medicines
The global market for complementary medicines
is estimated at around US $222 billion (2022) and is
expanding.20 Minerals including calcium, iron, magnesium
and zinc are expected to reach global revenues of US
$7.9 billion by 2030, growing at a compound annual
growth rate (CAGR) of 5% (2023-30).21 Vitamin ingredients
are expected to reach global revenues of US $7.07
billion, growing at a CAGR of 4.7% (2023-30).22
Specialty ingredients are also a significant source of
growth and innovation globally, driven by an ageing
global population and growing interest in health, wellness
and sports nutrition. These ingredients include creatine,
hyaluronic acid, CoQ10, melatonin, collagen, omega-3
fatty acids, amino acids, prebiotics, lutein and zeaxanthin,
probiotics, and protein ingredients (dairy and plant).23
19 Therapeutic Goods Administration (n.d.a)
20 NICM (2023) Securing the future of complementary medicines manufacturing in Australia. A strategic business case. Health Research Institute. Western
Sydney university. DOI: 10.26183/kj2q-ee25; The value was converted to USD for ease of comparison using historic data for Q1 2023. AUD-USD conversion
rate (1 AUD = 0.6826 USD)
21 Frost & Sullivan (2024a) Growth Opportunities in Vitamin and Mineral Ingredients for Human Nutrition, Global, 2024–2030.
22 Frost & Sullivan (2024a)
23 Frost & Sullivan (2023)
Figure 4 and Figure 5 outline the 2023 global revenue for key vitamin, mineral and specialty ingredients.24
Figure 4: Global revenue for vitamins and mineral ingredients (US $Million), 2023Figure 4: Global revenue for vitamins and mineral ingredients (US $Million), 2023
Note: applications include food and beverages, dietary supplements, specialised nutrition, personal care, cosmetics and pharmaceuticals.
Source: Frost & Sullivan, 2024
Figure 5: Global revenue for select speciality ingredients (US $Million), 2023 Figure 5: Global revenue for select speciality ingredients (US $Million), 2023
Note: applications include dietary supplements; functional food; and functional beverages.
Source: Frost & Sullivan, 2023
24 Frost & Sullivan (2024a)
2.2 Australian complementary medicines
In 2024, Australia’s complementary medicine industry’s
annual revenue reached approximately $6.2 billion, with
vitamins and dietary supplements accounting for 42%
($2.65 billion). In the same year, there were 82 Therapeutic
Goods Administration (TGA) licensed manufacturing
facilities across Australia.25 Between 2024 and 2029,
the industry is expected to grow at 5.7% CAGR.26
Complementary Medicines Australia (CMA), the industry’s
peak body, describe a growing consumer demand for
products that are natural and sustainable. This includes
products packaged using sustainable materials and
formulated with natural and clean ingredients, which are
perceived as having fewer side effects when compared
to synthetic medicines.27 Natural and clean ingredients
include those inputs that are grown, rather than
synthesised, and would favourably include inputs from
Australia’s agricultural industry. Consultations noted
that incorporation of sustainably sourced ingredients
is a point of differentiation for brands on the global
market, enabling valuable storytelling for marketers and
in some cases, attracting modest premiums (10-20%28)
for demonstrated environmental sustainability.29
While the Australian market is small, Australian made
products perform well in international markets. Australian
made products benefit from premium branding, driven
by strict manufacturing standards and TGA regulations
that result in high quality and safety.30 Exports of
Australian made complementary medicines reached
$1.2 billion in 2024, with China accounting for 75%.31
While the Australian complementary medicine industry
has shown consistent growth and has cultivated a strong
international brand image, a key challenge faced by
manufacturers is an under-developed sovereign raw
ingredients industry, necessitating heavy reliance on
imported raw materials and ingredients.32 These inputs are
the single largest cost for Australian manufacturers.33 It is
estimated that Australian manufacturers import around $1
billion of raw materials annually,34 representing around
99% of their requirements.35 This introduces significant
supply chain vulnerability and quality control risks.36 Supply
disruptions can have high-cost impacts on the industry
through loss of sales when products are out of stock.37
25 Complementary Medicines Association (n.d.) Australian Complementary Medicine Business Explodes. (accessed 22 April 2025)
26 Complementary Medicines Australia (2024) 2024 Industry Snapshot.
27 Complementary Medicines Australia (2024)
28 As indicated in consultations.
29 Frost & Sullivan (2024b) Upcycled Ingredients Industry, Global, 2024-2030. Market report.
30 Complementary Medicines Australia (2022) Pre-Budget Submission 2022-23. (accessed 22 April 2025)
31 Complementary Medicines Australia (2024)
32 NICM (2023)
33 IBISWorld, (2024) Vitamin and Supplement Manufacturing in Australia – Market Research report (2014-2019).
34 Spencer A (2021) The algae and seaweed opportunity: An Australian prospect. AgriFutures.
35 NICM (2023)
36 Complementary Medicines Australia (2024)
37 NICM (2023)
3 Extraction of bioactives
from agricultural and food
by-products
There may be opportunities to build an Australian supply
of raw ingredients for the Australian and international
complementary medicines manufacturing industries
by extracting bioactive compounds from agricultural
and food processing by-products that are currently
destined for lower value uses. Bioactive compounds are
naturally occurring in foods and may benefit human
health and wellbeing when consumed.38 Extracting
these compounds can add value to currently low value
by-product streams (often referred to as upcycling or
valorisation), potentially creating diverse income streams
for the agricultural and food sectors and improving the
utilisation of Australian grown agricultural products.
For Australian complementary medicines manufacturers,
developing the domestic raw ingredients sector represents
an opportunity to help reinforce local supply chain
resilience,39 develop naturally sourced products and
strengthen ‘Australian Made’ claims. Industry stakeholders
noted the importance of each of these benefits, if
quality, price and supply thresholds can be met.
Table 2 lists example bioactive compounds that
are prevalent across various agricultural produce.
These bioactives were considered for this report’s
opportunity analysis presented in Chapter 4.
Table 2: Bioactives found in agricultural by-products
SUB-SECTOR
EXAMPLE BIOACTIVES
Broadacre crops
Grains, pulses, oil
crops, sugarcane
Prebiotics, proteins, essential amino acids, polyphenols, B vitamin complexes, vitamins
D and E, calcium, magnesium, zinc.
Horticulture
Fruits, vegetables, nuts
Prebiotics, proteins, polyphenols, carotenoids (including carotenes, lutein, lycopene),
glucosinolates, B vitamin complexes, vitamins A, C and E, melatonin.
Livestock
Bovine, ovine, porcine
and poultry
Proteins (including collagen), essential amino acids, conjugated linoleic acids, vitamin
B, vitamin D, omega-3 fatty acids, calcium, iron, magnesium, zinc, creatine, hyaluronic
acid, CoQ10.
Animal product
Milk, eggs
Proteins (including lactoferrin and casein), vitamin D, conjugated linoleic acids,
carotenoids (lutein and zeaxanthins), CoQ10, melatonin.
Fisheries
Fish, crustaceans,
molluscs
Proteins (including collagen), omega-3 fatty acids, carotenoids (astaxanthin, lutein),
vitamin D.
38 Kussmann M, Abe Cunha DH, Berciano S (2023) Bioactive compounds for human and planetary health. Frontiers in nutrition, 10, 1193848.
39 Complementary Medicines Australia (2024)
3.1 Current state of bioactive extraction
Extraction technologies (see Box 1) are advancing the
opportunity for agricultural by-product upcycling to higher
value uses. There is currently a strong commercial focus on
extracting nutritional bioactives for supplying functional
food, with emerging research and development for their
use in complementary medicines. Generally, animal-based
by-product upcycling is more mature than plant-based.40
While there are emerging examples of bioactive extraction from
agricultural by-products in Australia, stakeholders note that
these processes are more advanced internationally, and despite
extensive research and interest, progress in supplying the
complementary medicines industry remains limited. Extraction
of bioactives requires specialised processes and equipment, and
in many cases, ongoing research is required to enable increased
efficiency, compound purity, sensitivity and scalability.
Box 1: Bioactive extraction technologies
The broader steps of the extraction process are
similar across commodities, with cleaning of the
by‑products through mechanical or chemical methods
(like grinding or hydrolysis), and extraction which
is used to isolate and refine the product.41
There are numerous emerging extraction techniques
and technologies including solvent extraction which
often uses water, ethanol, or supercritical CO₂;
ultrasound assisted extraction; microwave assisted
extraction; and solid phase micro extraction.42
Bioactives can also be generated and retrieved
through other production methods such as
biorefining and microbial fermentation, however
this is outside the scope of this report.
Case Study – Meat and Livestock
Australia: Industry development
for Australian bovine collagen and
nutraceuticals
With around 20% of the carcase delivering 80% of its
value, Meat & Livestock Australia (MLA), an Australian
Research and Development Corporation (RDC), are
investigating ways to fully utilise bovine and ovine
products to generate value from traditionally low
value by-products. This includes sourcing collagen
from red meat by-products to meet growing
demands within the nutraceutical industry. MLA has
explored high throughput processing technologies,
validated the market, and put forward a business
case for bovine collagen development.43
MLA collaborates with multiple organisations to
support industry development, including providing
seed funding to Freeze Dry Industries, a company
that has released an eco-friendly organic collagen
product range for the commercial market.44
Further, MLA has partnered with Kilcoy Nutrition to
develop a nutraceutical strategy and examine the
opportunities presented by harvesting bioactive
compounds from underutilised products such as
organs and glands. MLA reports that freeze dried
organ powders can achieve high margins, up to
100-400 times the margin from rendering.45
40 Frost & Sullivan (2024b)
41 Bhadange YA, Carpenter J, Saharan VK (2024) A comprehensive review on advanced extraction techniques for retrieving bioactive components from natural
sources. ACS omega, 9(29), 31274-31297.
42 Bhadange YA et al. (2024)
43 Meat & Livestock Australia (2024a) Finding high-value solutions to low-value meat cuts and co-products (accessed 7 May 2025)
44 Meat & Livestock Australia (2024b) Freeze dried collagen adds value and reduces waste. (accessed 7 May 2025)
45 Coleby C (2023) Final Report – Kilcoy Global Foods Nutraceutical Market Evaluation. Meat & Livestock Australia.
Case Study – Extracta: Pioneering the
recovery from agricultural by-products
Extracta is an Australian manufacturer transforming
nutrient-rich by-products from farming and beverage
production, such as sugarcane husk, citrus peel, and
grape marc—into premium plant-based ingredients
for food, nutraceutical, and cosmetic applications.46
With a strong focus on prebiotic dietary fibre,
Extracta partners with regional producers to capture
surplus, process locally and supply directly to
manufacturers through Australia’s first edible surplus
processing facility – supporting circular economy
principles and reducing carbon in supply chains.47
Case Study – Upcycled Certified fish oil
In 2024, New Chapter, a vitamin and supplement
company based within the United States, announced
its first Upcycled Certified products. The company’s
Wholemega Wild Alaskan Salmon Fish Oil line
uses materials sourced from Certified Responsible
Alaskan Fisheries, including nutrient-rich salmon
trim from products filleted for restaurants,
that would have been otherwise unused.48
Using ingredients that would otherwise not be
consumed by humans, upcycled foods can now be
certified through a program developed by the US-based
Upcycled Food Association,49 which provides credibility
for the sector and a recognisable mark for upcycled
products (including bioactive compounds used in
dietary supplements). There are calls for the upcycled
food certification to be expanded to Australia.50
46 Extracta (n.d.a) Food Waste? (accessed 7 May 2025)
47 Extracta (n.d.b) Powering Brands with Smarter Sourcing, Sustainability & Innovation. (accessed 7
May 2025)
48 New Chapter (2024) New Chapter launches First Upcycled Certified Products Including First to Market Upcycled Fish Oil. (accessed 22 April 2025)
49 Upcycled Food Association (2022) 2022 Impact Report. (accessed 22 April 2025)
50 Goodman-Smith F (2024) Upcycled Food. Winston Churchill Trust.
3.2 Why now?
The opportunity to build an Australian industry around
extraction of bioactives from Australian grown products
and by-products is not new, with several organisations
describing it in various forms.51 However, industries
that use and process agricultural production, including
food and complementary medicines, are approaching
turning points that are driving this opportunity:
• Post the COVID-19 pandemic, consumers have
become increasingly aware of the importance of
preventative health and overall wellbeing, driving
up demand for complementary medicines.
• Australian complementary medicines manufacturers
are motivated to source raw ingredients onshore
to improve supply chain resilience in the face
of ongoing climate and geopolitical risks.
• Pressures on agricultural producer profitability,
and consumer awareness around sustainability and
environmental impacts, are prompting producers
to further prioritise the identification of diversified
revenue streams and reduction of waste.52
Further, the Australian policy landscape also drives and
supports this opportunity, including the announced
Feeding Australia strategy that will identify opportunities
to improve supply chain resilience;53 the Future Made in
Australia agenda to maximise Australian manufacturing
opportunities; the 2024 National Waste Policy Action
Plan which aims to halve the amount of organic waste
sent to landfill by 2030;54 and the 2024 National Circular
Economy Framework which focuses on opportunities to
capture new markets, including ‘valorising agri-waste’.55
Stakeholder consultation suggests that despite a large
global industry and appetite for sovereign manufacturing,
there is a lack of awareness of the economic feasibility
and potential in Australia, which is holding back industry
growth. While individual companies have begun to
explore this opportunity, cross-sectoral national-scale
analysis is needed to identify and assess the most
attractive opportunities for national investment.
51 For example, Complementary Medicines Australia and the National Institute of Complementary Medicine Health Research Institute (NICM HRI)
52 Hassoun A, Cropotova J, Trif M, Rusu AV, Bobiş O, Nayik GA, Jagdale YD, Saeed F, Afzaal M, Mostashari P, Khaneghah AM (2022) Consumer acceptance of new
food trends resulting from the fourth industrial revolution technologies: A narrative review of literature and future perspectives. Frontiers in nutrition, 9,
972154.
53 Collins, J (2025) Feeding Australia: Albanese Labor Government's plan to secure our food future (accessed 07 May 2025)
54 DCCEEW (2024a) National Waste Policy Action Plan 2024. Department of Climate Change, Energy, the Environment and Water, Canberra.
55 DCCEEW (2024b) Australia’s Circular Economy Framework. Department of Climate Change, Energy, the Environment and Water, Canberra.
4 Opportunities for
Australian agrifood
4.1 Opportunity identification methodology
To identify the top 30 preliminary opportunities
(high volume and value by-product streams /
bioactive combinations) for further analysis, a
quantitative model was developed where:
• Data was drawn from the National Food Waste
Baseline,56 the Food Standards Australian
New Zealand (FSANZ) Food Composition
Database57 and other literature.
• 30 by-product streams (i.e., the combined range of
by-products generated at a single stage of production
or processing) were selected for analysis based on
their high volume or interest expressed from the
agricultural and complementary medicines industries.
• Bioactive volumes were estimated for 22
bioactives of high global market size for
each of the priority by-product streams (e.g.,
polyphenols in grape stems, marc and lees).
• Market wholesale prices were then applied to identify
the top 30 opportunities (by-product stream /
bioactive combination) by estimated supply value.
Each of the 30 opportunities were then explored further
qualitatively through consultation with industry (see
Appendix A) and desktop research to better understand
their maturity, practicality and potential within the
complementary medicines market (see Figure 6).
To prioritise prospective opportunities for potential
further commercial validation, the following three
preliminary opportunity analysis metrics were used:
• Supply value – the estimated Australian value of
the bioactive volume across the specific by-product
stream as determined by the quantitative analysis.
• Technical maturity – the current level of technical
development of extraction practices for the
opportunity across lab, pilot and commercial scales.
• Current Australian investment – the relative
investment already given to various opportunities
within Australia through research or commercial
analyses for the complementary medicines
industry or adjacent functional food industry.
This preliminary analysis was designed to take a data-
driven approach to identifying potential areas of
national strategic opportunity for further commercial
validation, investigation and analysis. Due to data
limitations, including the national level nature of the
database and the use of proxies where specific values
were not available, the analysis is not designed to
identify niche (low volume, high value) opportunities,
however examples of these opportunities were identified
during consultation and are noted in section 4.4.
Further detailed description of the scope and
methodology can be found in Appendix B.
Figure 6: Opportunity analysis methodologyFigure 6: Opportunity analysis methodology
TechnicalmaturityCurrent Australianinvestment
56 FIAL (2021) National Food Waste Strategy Feasibility Study. – Final Report (accessed 1 April 2025)
57 Food Standards Australia New Zealand (2022). Australian Food Composition Database – Release 2. Canberra: FSANZ.
4.2 Key findings
Table 3 outlines the top 30 opportunities identified
through this project. Key insights from this table include:
• The majority of the top 30 high-volume
opportunities occur at the post-farmgate food
processing stages. Only 5 identified opportunities
are related to pre-farmgate losses.
• Despite inclusion of some niche lower volume/high
bioactive concentration by-products streams, the top 30
were exclusively from high volume commodities. The
majority of which were broadacre crops (22), followed
by horticulture (5), livestock (2) and animal products (1).
• Numerous opportunities exist and are being
developed for the functional foods segment, including
protein, essential amino acids, or prebiotic (mainly
dietary fibre) ingredients. This commercial interest
contributes to strong global market sizes for these
ingredients, for example, protein ingredients has the
largest global market size of the bioactive categories
examined (AU $37B) and attracts significant research
and investment. In terms of expected future growth,
the amino acid market has the fastest expected
growth rate at 12.5% (CAGR 2022-2030), which may
be reflective of demand in the protein industry.58
• Polyphenols command high prices and interest, however,
may still require significant technical development
to reach large scale commercial opportunities.
• Traditional complementary medicine bioactives, such as
vitamins and essential minerals, have not demonstrated
significant supply value to justify a national focus on
extraction from agricultural by-product streams.
58 Frost & Sullivan (2023)
Value of bioactive supply within
agricultural by-product stream
Technical maturity
Current Australian investment
Greater than $100 Million
Bioactive extraction at pilot or commercial scale
Commercial research investment demonstrated for
complementary medicines
Between $20 - $100 Million
Technical extraction of bioactive demonstrated
and being optimised at laboratory scale
Commercial research investment demonstrated in
functional food industries.
<$20 million
Limited evidence of technical extraction
Limited commercial investment in Australia
Not assessed
Not assessed
Table 3: Summary of 30 preliminary opportunities (ordered by Australian supply value)
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Canola
Primary
processing
(crushing)
Essential
Amino Acids
$4,449
12.5%
$3,422
Technical extraction demonstrated and
undergoing optimisation. Extraction methods are
currently being developed through hydrolysing
canola meal proteins at the laboratory scale.60
Commercial investment into functional food
industries. Essential amino acid extraction
receiving investment within the plant-protein
efforts of the functional food segment.
Beef
Primary
processing
(slaughtering)
Collagen
$3,188
11.2%
$3,052
Commercial extraction demonstrated.61 Existing
industrial scale technology overseas and smaller
providers in Australia.
Commercial and technical elements well
established in global industry. Australian
commercial research is being undertaken by Meat
and Livestock Australia.62
Sugarcane
Primary
processing
(milling and
refining)
Polyphenols^
$3,996
6.4%
$1,482
Technical extraction demonstrated and
undergoing optimisation.63 The extraction and
benefits of sugarcane polyphenols has been widely
researched. Reports of extraction from bagasse and
molasses is limited to the research level. There are
isolated reports of commercial polyphenol extracts
from sugarcane being done internationally. This
may indicate pilot or commercial levels.
Limited commercial investment in Australia.
Stakeholders from agricultural and nutraceutical
industries indicated commercial interest in
ingredients from sugarcane/sugarcane products.
Indicating a novel opportunity for Australian
investment.
59 Frost & Sullivan (2023)
60 Warnakulasuriya SN, Tanaka T, Wanasundara JP (2024) Canola meal valorization via acid hydrolysis to generate free amino acids. Journal of the American Oil Chemists' Society, 101(1), 41-57.
61 Dobbrick F, Buckley M, Hendra A (2022) Hides to Riches Milestone 8 – Final Report Public. Meat and Livestock Australia. Prepared by Freeze dried industries.
62 As noted during consultations; Meat and Livestock Australia (2024) – see case study
63 Azlan A, Sultana S, Mahmod II (2023) Effect of different extraction methods on the total phenolics of sugar cane products. Molecules, 28(11), 4403; Hewawansa UH, Houghton MJ, Barber E, Costa RJ, Kitchen B, Williamson G (2024)
Flavonoids and phenolic acids from sugarcane: Distribution in the plant, changes during processing, and potential benefits to industry and health. Comprehensive reviews in food science and food safety, 23(2), e13307
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Wheat
Secondary
processing
(milling)
Essential
Amino Acids
$4,449
12.5%
$1,235
Technical extraction demonstrated and
undergoing optimisation. Targeted extraction of
amino acids from bran for the purposes of use in
biotechnology have been explored.64
Commercial investment into functional food
industries. Essential amino acid extraction
receiving investment within the protein efforts of
functional food segment.
Chicken
Primary
processing
(slaughtering)
Collagen
$3,188
11.2%
$1,147
Commercial extraction demonstrated. Well
established commercial scale internationally.65
Limited commercial investment in Australia.
Existing commercial interest and products.
However, there are no reported chicken collagen
extraction facilities in Australia. Indicating an
opportunity for Australian investment.
Canola
Primary
processing
(crushing)
Protein
Ingredients
$36,940
6.6%
$825
Pilot scale extraction. Commercial scale extraction
from canola seeds demonstrated for the functional
food industry.66
Commercial investment into functional food
industries. Significant investment into plant
protein opportunities from canola sources already
underway in Australia.67
Sugarcane
Primary
production
Polyphenols^
$3,996
6.4%
$757
Technical extraction demonstrated and
undergoing optimisation.68 The extraction and
benefits of sugarcane polyphenols has been
widely researched. Reports of extraction from
tops and trash is limited to the research level.
There are isolated reports of commercial scale
extraction of polyphenol from sugarcane being
done internationally.
Limited commercial investment in Australia.
Stakeholders from agricultural and nutraceutical
industries indicated commercial interest in
ingredients from sugarcane/sugarcane products.
Indicating a novel opportunity for Australian
investment.
Wheat
Primary
production
Essential
Amino Acids
$4,449
12.5%
$674
Laboratory characterisation only. Targeted
characterisation and quantification at laboratory
level. Characterisation research noted wheat lacks
certain essential amino acids like lysine, threonine,
and methionine.69
64 Hanstein, S (2024) Wheat bran extract as a source of amino compounds and sugar for biotech processes. Chemie Ingenieur Technik, 96(4), 440-445.
65 Technavio (2025) Global Collagen market 2025-2029. Market report.
66 Burcon (2024) Burcon Achieves First Run of Canola Protein isolate.< https://burcon.ca/2024/07/burcon-achieves-first-commercial-run-of-canola-protein-isolate/> (accessed 1 May 2025); Watson E (2022) ‘A highly soluble, complete
protein, with functional properties very close to whey protein…’ DSM gears up to launch upcycled canola protein isolate. (accessed 01 May 2025)
67 Simons J (2022) GrainCorp, CSIRO and v2food partner on $4.4 million plant-based protein research. GrainCorp. (accessed
30 April 2025)
68 Azlan A et al. (2023); Hewawansa UH et al.(2024)
69 Khan MS, Ali E, Ali S, Khan WM, Sajjad MA, Hussain F (2014). Assessment of essential amino acids in wheat proteins: A case study. J. Biodivers. Environ. Sci, 4, 185-189.
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Wheat
Tertiary
processing
(Bakery
and other
manufacturing)
Essential
Amino Acids
$4,449
12.5%
$400
Laboratory characterisation only. Targeted
characterisation and quantification at laboratory
level.70 Characterisation lacks certain essential
amino acids like lysine, threonine, and methionine.
Barley
Primary
production
Prebiotics
$3,405
7.3%
$317
Technical extraction demonstrated and
undergoing optimisation. Extraction of prebiotic
opportunities is occurring but is predominantly at
low scale. Commercial extraction demonstrated
for the functional food industry.71
Commercial investment into functional food
industries. High dietary fibre/prebiotic barley
is being developed and utilised to supplement
foods.72 However, consultations report limited
interest in alternative plant prebiotic ingredients
within complementary medicines industry.
Canola
Primary
processing
(crushing)
Polyphenols^
$3,996
6.4%
$309
Technical extraction demonstrated and
undergoing optimisation.73 Polyphenol
extraction from canola meal limited to laboratory
optimisation.
Limited commercial investment in Australia.
Limited canola based complementary medicine
products on the market. Indicating a novel
opportunity for Australian investment.
Barley
Secondary
processing
(malting)
Essential
Amino Acids
$4,449
12.5%
$289
Laboratory characterisation only.74 Targeted
extraction of amino acids is limited to protein
extraction and characterisation.
Wheat
Secondary
processing
(milling)
Protein
Ingredients
$36,940
6.6%
$274
Technical extraction demonstrated and
undergoing optimisation. Wheat germ protein
peptides have been extracted, characterised and
tested for physiochemical properties.75
Commercial investment into functional food
industries. Commercial and technical elements of
plant-based protein opportunity already receiving
significant investment.
Barley
Tertiary
processing
(brewing)
Essential
Amino Acids
$4,449
12.5%
$234
Technical extraction demonstrated and
undergoing optimisation.76 Extraction methods
are currently being optimised at the laboratory
scale engineering at the lab or pilot scale.
Commercial investment into functional food
industries. Essential amino acid extraction
receiving investment within the functional food
segment.
70 Kowalska S, Szłyk E, Jastrzębska A (2022) Simple extraction procedure for free amino acids determination in selected gluten-free flour samples. European Food Research and Technology, 1-11.
71 CSIRO (2023) BARELYmax. (accessed 22 April 2025)
72 Kovačević Z, Strgačić S, Bischof S (2023) Barley straw fiber extraction in the context of a circular economy. Fibers, 11(12), 108.
73 Hussain S, Rehman AU, Luckett DJ, Blanchard CL, Obied HK, Strappe P (2019). Phenolic compounds with antioxidant properties from canola meal extracts inhibit adipogenesis. International journal of molecular sciences, 21(1), 1.
74 Neylon E, Arendt EK, Lynch KM, Zannini E, Bazzoli P, Monin T, Sahin AW (2020) Rootlets, a malting by-product with great potential. Fermentation, 6(4), 117.
75 Chin YL, Keppler JK, Dinani ST, Chen WN, Boom R. (2024). Brewers' spent grain proteins: The extraction method determines the functional properties. Innovative Food Science & Emerging Technologies, 94, 103666.
76 Jaeger A, Zannini E, Sahin AW, Arendt EK (2021)
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Wheat
Primary
production
Protein
Ingredients
$36,940
6.6%
$155
Commercial extraction demonstrated for the
functional food industry. Wheat proteins are well
known, ongoing research is being undertaken to
characterise targeted proteins.77
Commercial investment into functional food
industries. Commercial and technical elements of
plant-based protein opportunity already receiving
significant investment.
Wheat
Tertiary
processing
(Bakery
and other
manufacturing)
Protein
Ingredients
$36,940
6.6%
$109
Laboratory characterisation only. Low volume
extraction methods explored, for the purpose of
characterisation.78 Bread waste research focussing
on use for fermentation or industrial feedstock.79
Almonds
Primary
process
(hulling)
Prebiotics
$3,405
7.3%
$97
Laboratory characterisation only.80 There is
limited research into prebiotic extraction.
Wine grapes
Secondary
processing
(Wine making)
Polyphenols^
$3,996
6.4%
$85
Pilot-level extraction demonstrated.81 Technology
for broader grapeseed oil extraction is being
utilised.
Commercial Australian investment is already
occurring. Stakeholders indicate commercial and
technical research is already being undertaken in
developing polyphenol extracts from viniculture
wastes.82
Barley
Secondary
processing
(malting)
Prebiotics
$3,405
7.3%
$81
Technical extraction demonstrated and
undergoing optimisation.83 There is ongoing
research into optimising extraction of prebiotics
from malted barley residues.84 Existing high
prebiotic content barley products indicate
commercial scale extraction in the functional food
industry.85
Commercial investment into functional
food industries. Commercial and technical
development of plant-based prebiotics/
dietary fibre products have received significant
investment for functional foods. However,
consultations report limited interest in alternative
plant prebiotic ingredients.
77 Szerszunowicz I, Kozicki S (2023). Plant-Derived Proteins and Peptides as Potential Immunomodulators. Molecules, 29(1), 209.
78 Kowalska S et al. (2022)
79 Dymchenko A, Geršl M, Gregor T (2023) Trends in bread waste utilisation. Trends in food science & technology, 132, 93-102.
80 Alasalvar C, Huang G, Bolling BW, Jantip PA, Pegg RB, Wong XK, Chang SK, Pelvan E, de Camargo AC, Mandalari G, Hossain A (2024) Upcycling commercial nut byproducts for food, nutraceutical, and pharmaceutical applications: A
comprehensive review. Food Chemistry, 142222.
81 End Food Waste Australia (n.d.) From wine waste to high-value nutrient extracts. (accessed 22 April 2025)
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Barley
Primary
production
Protein
Ingredients
$36,940
6.6%
$72
Technical extraction demonstrated and
undergoing optimisation.86 Barley-based protein
supplements, protein concentrates, and other
fortified food products indicate commercial
extraction for the functional food segment.87
Commercial investment into functional food
industries. Commercial and technical elements of
plant-based protein opportunity already receiving
significant investment.
Barley
Secondary
processing
(malting)
Protein
Ingredients
$36,940
6.6%
$71
Laboratory characterisation only.88 Malt barley
characterisation and analysis for protein limited to
use in brewing preparation.
Almonds
Primary
processing
(hulling)
Essential
Amino Acids
$4,449
12.5%
$61
Laboratory characterisation only. Focus on
fortified food and animal feed.89 Almond hull
upcycling research in Australia currently focussed
on bioenergy.90
Milk
Secondary
processing
(cheese
making)
Protein
Ingredients
$36,940
6.6%
$57
Commercial extraction demonstrated.91 Technical
extraction is already established across broader
proteins hydrolysates and for specialised targeted
proteins (i.e. Lactalbumin).
Commercial Australian investment already
occurring. Whey protein extracts and products
are well established in global industry.
Stakeholders indicate detailed protein
characterisation and extraction has already
been done, as such there is reduced commercial
appetite for broader protein products.
Corn (Maize)
Secondary
processing
(milling)
Polyphenols^
$3,996
6.4%
$48
Laboratory characterisation only.92 Most research
is directed at improving the quality for animal
feed, biomaterials or bioethanol manufacturing.93
86 Houde M, Khodaei N, Benkerroum N, Karboune S (2018) Barley protein concentrates: Extraction, structural and functional properties. Food chemistry, 254, 367-376.
87 Emerging companies with barley protein products include AB InBev by Evergrain Ingredients. , Goodness Booster Flour by Grainstone , Protein concentrates
by Montana Microbial
88 Devnani B, Moran GC, Grossmann L. (2023) Extraction, composition, functionality, and utilization of brewer’s spent grain protein in food formulations. Foods, 12(7), 1543.
89 Alasalvar C et al. (2024); Ollani S, Peano C, Sottile F (2024) Recent innovations on the reuse of almond and hazelnut by-products: A review. Sustainability, 16(6), 2577.
90 Circular Economy Business Innovation Centre (2023) Funded project – Innovative almond waste digestion systems for nutritional fertilizer production. (accessed 22 April 2025)
91 Mehra R, Kumar H, Kumar N, Ranvir S, Jana A, Buttar HS, Telessy IG, Awuchi CG, Okpala CO, Korzeniowska M, Guiné RP (2021). Whey proteins processing and emergent derivatives: An insight perspective from constituents, bioactivities,
functionalities to therapeutic applications. Journal of Functional Foods, 87, 104760.
92 Blandino M, Alfieri M, Giordano D, Vanara F, Redaelli R (2017). Distribution of bioactive compounds in maize fractions obtained in two different types of large -scale milling processes. Journal of cereal science, 77, 251-258. Alahmed A,
Simsek S (2024) Enhancing Mechanical Properties of Corn Bran Arabinoxylan Films for Sustainable Food Packaging. Foods, 13(9), 1314.
93 Papageorgiou M, Skendi A 2018). Introduction to cereal processing and by-products. In Sustainable recovery and reutilization of cereal processing by-products (pp. 1-25). Woodhead Publishing.
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Lentils
Primary
processing
Prebiotics
$3,405
7.3%
$44
Technical extraction demonstrated and
undergoing optimisation. Extraction methods are
being explored.94
Commercial investment into functional
food industries. Commercial and technical
development of plant-based prebiotics/
dietary fibre products have received significant
investment for functional foods. However,
consultations report limited interest in alternative
plant prebiotic ingredients.
Olives
Secondary
processing
(crushing)
Polyphenols^
$3,996
6.4%
$38
Commercial extraction demonstrated. Olive
pomace extracts are available at the commercial
scale for nutraceuticals. Emerging technologies
used in the olive oil industry. Ultrasound Assisted
Extraction are now being piloted.95
Opportunities for Australian investment.
Limited current investment. Existing commercial
interest and products. However there has been
limited investment into olive pomace sourced
nutraceuticals. Indicating a novel opportunity for
Australian investment.
Barley
Tertiary
processing
(brewing)
Protein
Ingredients
$36,940
6.6%
$32
Technical extraction demonstrated undergoing
optimisation. Research is focussing on
optimisation of protein extraction methods for
specific functional proteins and protein isolates.96
Protein extraction from BSG (Brewers Spent
Grain) for food grade protein products is at the
commercial scale.97
Commercial investment into functional food
industries.98 Commercial and technical elements
of plant-based protein opportunity already
receiving significant investment. BSG-based
upcycling into food products is a practice
emerging in Australia.
Barley
Tertiary
processing
(brewing)
Polyphenols^
$3,996
6.4%
$31
Technical extraction demonstrated and
undergoing optimisation.
Limited commercial investment in Australia.
Indicating a novel opportunity for Australian
investment.
94 Bautista-Expósito S, Vandenberg A, Dueñas M, Peñas E, Frias J, Martínez-Villaluenga C (2022). Selection of enzymatic treatments for upcycling lentil hulls into ingredients rich in oligosaccharides and free phenolics. Molecules, 27(23),
8458.
95 Rodríguez Ó, Bona S, Stäbler A, Rodríguez-Turienzo L (2022). Ultrasound-assisted extraction of polyphenols from olive pomace: Scale up from laboratory to pilot scenario. Processes, 10(12), 2481
96 Chin YL et al. (2024).
97 Jaegar A et al. (2021). Shoup ME (2022) EveryGrain starts commercial production of upcycled barley protein: ‘The timing of us reaching scale couldn’t be better’ (accessed 23 April 2025)
98 Burnett C (2020) Grainstone turns spent grain into flour. (accessed 22 April 2025)
COMMODITY
PRODUCTION
OR PROCESSING
STAGE
BIOACTIVES
GLOBAL BIOACTIVE
MARKET 59
AUSTRALIAN
SUPPLY VALUE
(AU $
MILLION)
TECHNICAL MATURITY
CURRENT AUSTRALIAN INVESTMENT
MARKET
SIZE
(AU $M
2030)
CAGR
(2022-
2030)
Almonds
Primary
processing
(hulling)
Protein
Ingredients
$36,940
6.6%
$30
Laboratory characterisation only.99 Focus on
fortified food and animal feed.100 Almond hull
upcycling research in Australia currently focussed
on bioenergy.101
Barley
Tertiary
processing
(brewing)
Prebiotics
$3,405
7.3%
$11
Notes: Preliminary opportunities were assessed against the three metrics in the order of value of supply, technical maturity and current Australian investment. Opportunities with a supply
value of <$20 million or technical maturity limited to laboratory characterisation, were filtered and further qualitative assessment was not undertaken. These opportunities will require greater
supply, higher prices or further technological development for future consideration as a national-scale opportunity. All supply values should be considered as indicative only.
^Polyphenol content used the Total Phenolic Content of the by-products as sourced from public literature. Market size (2030) and (CAGR 2025-2035) sourced from Skyquest, Global Polyphenols Market102
99 Alasalvar C et al. (2025)
100 Ollani S et al. (2024)
101 Circular Economy Business Innovation Centre (2023)
102 Skyquest (2025)
4.3 Prospective opportunities
While all commodities highlighted in Table 3 represent
potential opportunities to service the complementary
medicine industry, AgriFutures Australia were interested in
identifying those with comparatively untapped potential.
Five were selected for profiling in this section (see
Figure 7) which all have a high value in terms of potential
bioactive supply (>$20 million), have demonstrated
technical extraction in some capacity, and have had limited
commercial investment within Australia. Priority was
given to those where further commercial analysis would
be valuable rather than duplicate existing analyses.
Figure 7: Five prospective opportunities selected for further profiling and potential commercial viability analysisFigure 7: Five prospective opportunities selected for further profiling and potential commercial viability analysis
Polyphenols from
canola mealPolyphenols from
olive pomacePolyphenols from barley viaspent brewers grainPolyphenols from sugarcane,
trash, bagasse and molassesCollagen from chicken
trimmings, bones and offal
Prospective opportunities with pilot or commercial
level extraction are closer to potential Australian
commercialisation and may present nearer term
opportunities. These include collagen from chicken
trimmings, bones and offal and polyphenols from olive
pomace. Alternatively, polyphenols from sugarcane
by-products, canola meal and barley spent brewers
grain all present potential longer-term opportunities
due to lower levels of technical development.
Polyphenols from sugarcane trash, bagasse and molasses
Australian bioactive
supply value
Primary production: $757M
Primary processing: $1,482M
Commodity
by-product types
Trash, bagasse and molasses
Key growing regions
Coastal QLD (95%) and Northern NSW (5%).103
Description
Mechanised harvesting of sugarcane produces billets
that are transported to local sugar mills. Sugarcane
trash is a by-product of harvesting consisting of dry
leaves (60%) and green tops (40%) and is either used as
a trash blanket (mulch) or in some cases burnt before
harvest.104 Primary processing of sugarcane involves
milling billets to produce sugar, which produces by-
products including fibrous bagasse and molasses.
These by-products contain a variety of polyphenolic
compounds such as flavonoids (e.g., catechin and
quercetin), phenolic acids (e.g., ferulic acid and gallic
acid), and lignin-derived polyphenols.105 These can be
used within the complementary medicines industry
for their antioxidant functionality. Further, research
reports that polyphenols from sugarcane bagasse exhibit
activity that may support blood sugar management.106
Australian institutions are researching and conducting
clinical trials to investigate the medicinal benefits of
sugarcane polyphenols, with emerging clinical research
indicating prebiotic benefits of sugarcane extracts.107
Technical considerations
Extensive research has already characterised the
composition and phenolic content of sugarcane by-
products, with emerging research assessing and
optimising efficiency of extraction techniques.108 While
pilot plants for sugarcane bagasse processing exist in
Queensland, the function is directed at the generation of
bioenergy products and bioplastics.109 There are limited
reported commercial or pilot scale plants for nutrient
or bioactive extraction of sugarcane by-products.
Scaling bioactive extraction from bagasse and molasses
to a commercial level will likely require integration of new
technology into existing milling facilities and sugarcane
networks to optimise existing assets and operations.
Stakeholders highlighted the importance of ensuring future
equipment is installed alongside existing infrastructure
which are long standing investments from the sugarcane
industry, such as rail supply systems designed to handle
high volumes. There would be a preference for onsite
bioactive processing, however it would be constrained to
size limitations based on the footprint of the mill itself.
103 Department of Agriculture Fisheries and Forestry (n.d.) Sugar. Australian Government. (accessed 22 April 2025)
104 Sukphun P, Wongarmat W, Imai T, Sittijunda S, Chaiprapat S, Reungsang A (2023) Two-stage biohydrogen and methane production from sugarcane-based
sugar and ethanol industrial wastes: a comprehensive review. Bioresource Technology, 386, 129519.
105 Vijayalaxmi S, Jayalakshmi SK, Sreeramulu K (2015) Polyphenols from different agricultural residues: extraction, identification and their antioxidant
properties. Journal of Food Science and Technology, 52, 2761-2769.
106 Zheng R, Su S, Zhou H, Yan H, Ye J, Zhao Z, You L, Fu X (2017) Antioxidant/antihyperglycemic activity of phenolics from sugarcane (Saccharum officinarum L.)
bagasse and identification by UHPLC-HR-TOFMS. Industrial Crops and Products, 101, 104-114.
107 CASS Food Research Centre (n.d.) Power of Polyphenol Rich Sugarcane Extracts on improving the gut microbiome, mood and blood work. Deakin University.
(Accessed 22 April 2025); Tang C, Montoya JC, Fritzlar S, Flavel M, Londrigan SL, Mackenzie JM (2024) Polyphenol rich sugarcane extract (PRSE) has
potential antiviral activity against influenza a virus in vitro. Virology, 590, 109969.
108 Azlan A, Sultana S, Mahmod II (2023) Effect of different extraction methods on the total phenolics of sugar cane products. Molecules, 28(11), 4403.
109 Groves M (2021) Pilot plant turning sugarcane waste into jet fuel, diesel, plastics prepares to flick switch. ABC news. (accessed 22 April 2025)
Preliminary commercial considerations
There are niche players within the market who are
promoting polyphenol-rich sugarcane extract products,
which may indicate a growing interest and potential for
utilisation in the complementary medicines sector.110
However, there are limited reports of the use of
sugarcane by-products to create supplement products.
For primary production by-products, cost effective
collection of trash is an important consideration. One
study found that the lowest cost option is to collect trash
during harvesting and separate it from cane prior to
milling.111 Further, any commercial opportunity would
need to outweigh the benefits to farmers of retaining
trash residues on the field, which include reducing
losses of water, sediment, nutrients and pesticides,
weed management and improving soil health.112
There is already substantial cross-sectoral interest
for sugarcane by-products to be used for alternative
functions which may compete with bioactive extraction
opportunities. Bagasse reportedly has negligible waste
management cost, as the sugarcane industry currently
utilises 100% of the bagasse by-products to fuel boilers
to generate power for mills, with excess electricity
returned to the grid. There are also emerging competing
options to use bagasse for the industrial production
of construction materials, bioethanol and sustainable
aviation fuel.113 Availability of molasses for extraction
will be determined by how much goes to new food
production compared to the surplus volume being utilised
as animal feed or into industrial chemical manufacturing.
110 NutraShure (n.d.) The Antioxidant Powerhouse Polynol . (accessed 22 April 2025); The Product Makers (n.d.) Polynol.
(accessed 22 April 2025).
111 O’Hara I, Kaparaju P, Paulose P, Plaza F, Henderson C, Latif A, Zhang Z, Doherty W, Moghaddam L, Baker A, Renouf M, Mirskaya K, Ketsub N, Asad H. (2020)
Biogas from sugarcane – Project results and lessons learnt. Queensland University of Technology. (accessed 22 April 2025)
112 Queensland government (2018) Cropping – sugarcane trash. Australian Biomass for Bioenergy Assessment. (24 April 2025)
113 Singh SP, Jawaid M, Chandrasekar M, Senthilkumar K, Yadav B, Saba N, Siengchin S (2021) Sugarcane wastes into commercial products: Processing methods,
production optimization and challenges. Journal of Cleaner Production, 328, 129453.
Collagen from chicken trimmings, bones and offal
Australian bioactive
supply value
$1,147M
Commodity
by-product types
Trimmings, bones, skin, feet, offal,
rendering products (i.e. protein meal)
Key growing regions
Outer areas of Sydney, Brisbane, Melbourne, Adelaide and Perth114
Description
The broiler chicken industry reports that 30% of its output
from chicken processing plants are by-products such as
trimmings, feathers, skin and offal, which are used for
other products like pet foods.115 Chicken is a commercial
source of undenatured Type II collagen and hydrolysed
collagen peptides which are increasingly popular in the
complementary medicines industry. Further, chicken is
also a rich source of types I-V collagens across various
connective tissues such bone, cartilage, tendon and
skin, especially around the neck, sternum and feet.116
Technical considerations
Chicken-derived collagen extraction methods are well-
established, primarily using acid-solubilised and enzyme-
assisted processes. While commercial scale techniques
are available, extraction is still varied across collagen
quality, extraction efficiency and scalability. Key challenges
include improving yield and lowering processing costs.117
Preliminary commercial considerations
The global collagen market is well-established, with major
international suppliers operating within the United States,
Japan, China, United Kington and across the European
Union. Market reports note that poultry collagen faces
slower projected growth compared to other sources
and remains the smallest source segment.118 It competes
directly with more dominant sources including porcine,
bovine, and marine collagen, alongside growing consumer
demand for halal and plant-based alternatives.119
Despite limited reports of Australian-made chicken
collagen, an Australian Chicken Meat Federation
submission to the Productivity Commission highlights
an emerging industry focus on collagen extraction
using rendering technologies.120 The submission
notes that the conversion of by-products into high
value products can improve industry sustainability
through the utilisation of existing systems.
An Australian industry for chicken collagen supply
and additional upcycling of chicken by-products in
Australia may benefit from the vertically integrated
poultry industry across breeders and processers.121
114 Poultry Hub Australia (n.d) Meat Chicken (Broiler) Industry. (accessed 22 April 2025)
115 Australian Chicken Meat Federation (n.d) What makes chicken Australian’s favourite meat?
(accessed 22 April 2025)
116 Abedin MZ, Riemschneider R. Chicken skin collagen. Molecular diversity and susceptibility to neutral proteinases. Pharmazeutische Industrie. 1984;46(5):532-
5; Jayaprakash S, Razeen ZM, Kumar RN, He J, Milky MG, Renuka R, Sanskrithi MV (2024). Enriched characteristics of poultry collagen over other sources of
collagen and its extraction methods: A review. International Journal of Biological Macromolecules, 133004.
117 Kıyak BD, Çınkır Nİ, Çelebi Y, Malçok SD, Koç GÇ, Adal S, Yüksel AN, Süfer Ö, Karabacak AÖ, Ramniwas S, Pandiselvam R (2024) Advanced technologies for the
collagen extraction from food waste–A review on recent progress. Microchemical Journal, 201, 110404.
118 Technavio (2023) Global Collagen Market 2025-2029. Market Report.
119 Gunn B (2025) Recombinant Human Collagen: Plant-Based Production Addresses Growing Demand for a Vegan Option. BioProcess International. (accessed 22 April 2025)
120 Australian Chicken Meat Federation (2024) Opportunities in circular economy. Letter to the Productivity Commission. (accessed 22 April 2025)
121 Australian Chicken Meat Federation (2024) Our industry. (accessed 22 April 2025)
Polyphenols from canola meal
Australian bioactive
supply value
$308M
Commodity
by-product types
Canola meal (traditional extraction
by-product), Canola cake (mechanical extraction only)
Key growing and
processing regions
Wheat belt and southern WA, Eyre Peninsula SA, Wheat belt VIC-NSW122
Processing in VIC and NSW.
Description
Canola meal is the solid by-product from the oil extraction
process of the canola rapeseed variety (which is specifically
low-glucosinolate and low-erucic acid). It is produced
at the end of the extraction process, alongside crude
canola oil, and is predominantly used for animal feed.
Canola meal contains several antioxidant polyphenols, with
the main compounds being sinapic acid (and its derivatives
such as, canolol and sinapine), ferulic acid, caffeic acid and
kaempferol derivatives.123 While there is limited research
for using canola-based polyphenols in complementary
medicines, analysis of canola meal extracts report strong
antioxidative properties and emerging research suggests
potential anti-inflammatory and anti-diabetic activity.124
Technical considerations
Effective extraction of polyphenols from canola
meal will be impacted by oil processing methods
and variable content of residues. Different oil
production methods result in canola meal with
different residual oil content ranging from 1-20%.125
The most common method (traditional) involves heat
treatment (toasting), crushing, mechanical pressing
and chemical solvents for oil extraction, resulting in
low oil content, defatted meal. The toasting step is
used to remove anti-nutritional compounds such as
glucosinolates and erucic acid, but will also degrade
thermally sensitive polyphenols, and chemical solvent
extraction may also lower the availability of lipophilic
polyphenols.126 Stakeholders suggest polyphenols
may potentially be extracted from canola cake (the
solid residue left after mechanical extraction that has
not undergone solvent extraction), but would require
amending industry standard production methods.
122 Australian Bureau of Statistics (2022) Canola, experimental regional estimates using new data sources and methods. First Release. Reference period 2019-20
financial year. (accessed 30 April 2025)
123 Hussain S, Rehman AU, Luckett DJ, Blanchard CL, Obied HK, Strappe P (2019) Phenolic compounds with antioxidant properties from canola meal extracts
inhibit adipogenesis. International journal of molecular sciences, 21(1), 1.
124 Hussain S, et al. (2019); Hussain S, Rehman AU, Obied HK, Luckett DJ, Blanchard CL. (2022). Extraction, chemical characterization, in vitro antioxidant, and
antidiabetic activity of canola (Brassica napus L.) meal. Separations, 9(2), 38.
125 Australian Export Grains Innovation Centre (n.d.) Australian canola meal for dairy cattle. < https://www.aegic.org.au/wp-content/uploads/2024/11/07-AEGIC-
Australian-canola-meal-for-dairy-cattle.pdf> (accessed 30 April 2025)
126 Ye Z, Liu Y (2023). Polyphenolic compounds from rapeseeds (Brassica napus L.): The major types, biofunctional roles, bioavailability, and the influences of
rapeseed oil processing technologies on the content. Food Research International, 163, 112282.
Canola meal from alternative processes that do not use
heat treatment (such as cold press) or use chemical solvents
(such as expeller press) may have higher polyphenol content
as less polyphenols are degraded or extracted within
the crude oil.127 However, these processes are much less
common in Australia, which may limit available feedstock.
Preliminary commercial onsiderations
Canola meal supply may be constrained by numerous
factors including strong demand from animal feed
industries across dairy, livestock and aquaculture, as
well as growing interest for canola meal as an industrial
biotechnology feedstock.128 Furthermore, most of
Australia’s canola production is exported, with only
a fraction directed to Australia’s relatively small local
canola crushing industry. Canola meal supply will also
be susceptible to environmental changes, as well as
pest and diseases that affect canola production.129
Stakeholders suggest efforts to extract bioactives
from canola by-products could also include unrefined
crude oil as a feedstock, which also contains high
levels of polyphenols, tocopherols and phytosterols.
There is increasing investment into improving Australia’s
canola crushing industry which may improve canola
meal availability.130 Furthermore, increased research into
the use of canola by-products as an alternative protein
source and development of high long chain omega-3
cultivars suggest there is a strong appetite to add and
diversify value streams for canola in Australia. However,
these efforts are in early development which may pull
focus from other bioactive extraction research.
127 Chew, SC (2020) Cold-pressed rapeseed (Brassica napus) oil: Chemistry and functionality. Food Research International, 131, 108997.
128 CSIRO (2023) Future Canola. (accessed 30 April 2025).
Wongsirichot P, Gonzalez-Miquel M, Winterburn J (2022). Recent advances in rapeseed meal as alternative feedstock for industrial biotechnology.
Biochemical Engineering Journal, 180, 108373.
129 CSIRO (2023) Future Canola. (accessed 30 April 2025).
130 Alsop E (2024) Crushing investments point to confidence in canola. Grain Central. (accessed 30 April 2025)
Polyphenols from olive pomace
Australian bioactive
supply value
$38M
Commodity
by-product types
Solid pomace
(olive pulp, may include skin and stones)
Key growing regions
North-Central VIC, Perth, WA131
Description
During olive oil production, large volumes of
olive pomace are produced as a by-product. While
pomace is often reprocessed to maximise oil yield,
sizeable nutrient rich portions are still disposed.
Olive pomace contains significant amounts of antioxidant
polyphenols, notably oleuropein, hydroxytyrosol and
tyrosol, as well as other flavonoids and phenolic acids.132
Studies report that olive pomace may yield higher
polyphenol content than the refined olive oils, with 98% of
the phenolic content going into byproduct streams during
production.133 Pomace is so high in phenolic content that it
is considered phytotoxic and is an environmental burden.134
Technical considerations
Polyphenol extraction yield from olive oil production
is highly influenced by the production method, with
research reporting that modern 2 phase extraction
of olive oil yields pomace with higher total phenolic
content than the traditional 3 phase extraction.135
Furthermore, research reports that the phenolic content
found within the milling wastewater is higher than that
of the solid pomace content, as such producers can
also consider co-extraction to maximise polyphenol
yield. The scale-up and viability of commercial olive
pomace polyphenol extraction will also need to consider
other factors including how to reduce high polyphenol
degradation rates, and how to reduce reliance on using
environmentally harmful solvents at large volumes.136
Preliminary commercial considerations
Extensive clinical research supports the health benefits
of olive-based products, strengthening potential health
claims that will support uptake in the complementary
medicines industry.137 There is a large existing market
for olive leaf extracts, which may suggest consumer
appetite for future olive-based supplements, however
this will require further market testing. There is also
existing interest and investment into olive oil by-
product upcycling, such as into other food products,
biofilms, soil additives and bioenergy.138, 139 In
Victoria, Boundary Bend Olives is undertaking research
into the development of an olive waste processing
facility to develop circular economy products.140
131 Australian Olive Association (2019) Australian Olive Oil – an overview 2019.
(accessed 24 April 2025)
132 Selim S, Albqmi M, Al-Sanea MM, Alnusaire TS, Almuhayawi MS, AbdElgawad H, Al Jaouni SK, Elkelish A, Hussein S, Warrad M, El-Saadony MT (2022)
Valorizing the usage of olive leaves, bioactive compounds, biological activities, and food applications: A comprehensive review. Frontiers in Nutrition, 9,
1008349.
133 Nunes MA, Costa AS, Bessada S, Santos J, Puga H, Alves RC, Freitas V, Oliveira MB (2018) Olive pomace as a valuable source of bioactive compounds: A study
regarding its lipid-and water-soluble components. Science of the total environment, 644, 229-236
134 Nunes MA et al. (2018)
135 Obied HK, Bedgood Jr DR, Prenzler PD, Robards K (2008) Effect of processing conditions, prestorage treatment, and storage conditions on the phenol
content and antioxidant activity of olive mill waste. Journal of Agricultural and Food Chemistry, 56(11), 3925-3932.
136 Nunes, M. A., Pimentel, F. B., Costa, A. S., Alves, R. C., & Oliveira, M. B. P (2016) Olive by-products for functional and food applications: Challenging
opportunities to face environmental constraints. Innovative Food Science & Emerging Technologies, 35, 139-148.
137 Mantzioris E (2025) Olive oil is healthy. Turns out olive leaf extract may be good for us too. The Conversation. (accessed 22 April 2025)
138 Barton J (n.d) Recycling Solid Waste from the Olive Oil Extraction Process. RIRDC Pub . No. 08/165. (accessed 22 April 2025) https://insights.figlobal.com/startups/making-
clean-label-preservatives-from-olive-oil-pomace
139 Michail N (2022) Making clean label preservatives from olive oil pomace. Fi Global Insights. Informa markets. (accessed 22 April 2025)
140 Circular Economy Business Innovation Centre (2023b) Funded project – Building Australia’s first zero waste hub for olive growers. (accessed 7 May 2025)
Polyphenols from barley spent brewers grain
Description
Spent Brewers Grain (SBG) is the primary by-product of the
beer brewing process. It is a solid residue remaining after the
fermentable sugars are separated from malted barley, and
typically consists of the husk, pericarp and seed coat of barley
grains. SBG accounts for 80-85% of the brewing industry’s
generated by‑products.141 Unprocessed SBG is occasionally
used for low value applications such as for animal feed,
composting or burning, but is often sent to landfill.142
SBG is nutritionally dense with high levels of functional
protein, dietary fibres, lipids, vitamins and minerals.143
Further, SBG also contains considerable levels of
antioxidant polyphenols. These include ferulic acid,
p-coumaric acid, caffeic acid, and sinapic acid.144
Technical considerations
SBG’s high moisture content (up to 80%) makes it
susceptible to spoilage and degradation of the bioactive
compounds prior to extraction, posing challenges for
storage and transportation.145 Further, the polyphenolic
compounds are usually encapsulated within the solid
lignocellulosic material, which requires pretreatment
to release phenolics for extraction, such as mechanical,
chemical, thermal or enzymatic pretreatment.
Research notes that development of new or optimising
pretreatment techniques will be required.146
Traditional chemical or thermal extraction methods
can produce high levels of polyphenols but are
highly variable in efficiency, are high cost and are
associated with negative environmental impacts.147
Green extraction methods are emerging, however
still require greater research and optimisation.148
Preliminary commercial considerations
There are ongoing efforts to repurpose SBG across
industries; this includes as a source of nutrients for
food and feed products, as well as further industrial
processing converting SBG into biofuel, bioplastic
production, construction additives, and biosorbents.
This may present competition for supply.149
Beer consumption in Australia is declining, however, there
is an increase in smaller breweries as consumer preferences
move towards higher quality craft beers.150 This trend
may impact the sourcing of SBG as feedstock, requiring
processors to aggregate supply from multiple dispersed
sources to achieve volumes required for large extractions.
Australian bioactive
supply value
$31M
Commodity
by-product types
Spent brewers grain
Key growing regions
VIC, NSW, QLD
141 Singh SP, Jawaid M, Chandrasekar M, Senthilkumar K, Yadav B, Saba N, Siengchin S (2021) Sugarcane wastes into commercial products: Processing
methods, production optimization and challenges. Journal of Cleaner Production, 328, 129453.
142 End Food Waste Australia (n.d.) SME Solutions Centre – Prioritisation of value-adding opportunities to upcycle brewing by-products. (accessed 22 April 2025)
143 Fărcaș AC, Socaci SA, Chiș MS, Martínez-Monzó J, García-Segovia P, Becze A, Török AI, Cadar O, Coldea TE, Igual M (2022) In vitro digestibility of minerals
and B group vitamins from different brewers’ spent grains. Nutrients, 14(17), 3512. Chetrariu A, Dabija A (2023) Spent grain: A functional ingredient for
food applications. Foods, 12(7), 1533.
144 Verni M, Pontonio E, Krona A, Jacob S, Pinto D, Rinaldi F, Verardo V, Díaz-de-Cerio E, Coda R, Rizzello CG (2020) Bioprocessing of brewers’ spent grain
enhances its antioxidant activity: Characterization of phenolic compounds and bioactive peptides. Frontiers in Microbiology, 11, 1831.
145 Terefe G (2022) Preservation techniques and their effect on nutritional values and microbial population of brewer’s spent grain: a review. CABI
Agriculture and Bioscience, 3, 51.
146 Lech M, Labus K (2022) The methods of brewers’ spent grain treatment towards the recovery of valuable ingredients contained therein and
comprehensive management of its residues. Chemical Engineering Research and Design, 183, 494-511.
147 Qazanfarzadeh Z, Ramu Ganesan A, Mariniello L, Conterno L, Kumaravel V (2023) Valorization of brewer's spent grain for sustainable food packaging.
Journal of Cleaner Production, 385, 135726.
148 Macias-Garbett R, Serna-Hernández SO, Sosa-Hernández JE, Parra-Saldívar R (2021) Phenolic compounds from brewer's spent grains: Toward green
recovery methods and applications in the cosmetic industry. Frontiers in Sustainable Food Systems, 5, 681684.
149 Lech M, Labus K (2022)
150 Wynne T (n.d.) Craft beer – Bucking the trend in Australia. The Agribusiness Bulletin. Delloite. (accessed 22 April 2025)
4.4 Other emerging opportunities
While quantitative modelling deliberately biased high-
volume opportunities, niche commodities and bioactives
could also present attractive opportunities at the
individual company level. Table 4 lists examples of such
opportunities that arose during the consultation process.
Furthermore, Table 5 lists emerging agricultural sources
highlighted during consultation as they may also be
bioactive sources but would most likely be grown for a
separate purpose and so not be considered by-products.
Aggregating high purity bioactives at lower volumes
from various sources may present opportunities to
consolidate lower volume by-products from within
a region. However, stakeholders note the technical
complexity required may greatly affect the capital
expenditure required to establish infrastructure.
Table 4: Potential niche opportunities
COMMODITY
POTENTIAL OPPORTUNITIES FOR BIOACTIVES FROM BY-PRODUCTS
Farmed
crocodile
Research is being undertaken to isolate and characterise collagen peptides from farmed crocodile by-products
including cartilaginous material around the ribs and tail.151 There is a growing farmed crocodile industry in the
Northern Territory and north Queensland supplying a significant amount of the world’s supply of crocodile skin and
meat.152
Orange
Orange peel by-products are a rich source of bioactives which have been extensively characterised by research. These
include phenolic acids (ferulic acid, caffeic acid, and p-coumaric acid), flavonoids (hesperidin, narirutin, eriocitrin),
and over 20 types of carotenoids.153, 154 There are large growing regions of oranges in the Murray Valley in Victoria,
Riverina region of New South Wales, and the Swan Hill Riverland in South Australia.
Dragonfruit
While the bioactive composition of dragonfruit has been broadly characterised, there is limited research on
Australian grown varieties. Dragonfruit skin is currently being explored for its polyphenols (flavonoids, phenolic acids
and anthocyanins) and betalains.155 Australian dragonfruit are predominantly grown in the Northern Territory and
Queensland.156
Mango
Mango by-products include the peel and kernel. Mango peel contains phenolic acids (gallic acid, caffeic acid, and
ferulic acid), flavonoids (quercetin, kaempferol, and mangiferin), and carotenoids like β-carotene. Mango kernels
are a notable source of polyphenols, including rutin and penta-o-galloyl-glucoside, as well as tocopherols and
phytosterols. Mango key growing regions are tropical and subtropical Northern Territory and Queensland, with
varieties also grown in Western Australia and New South Wales.
Tomato
Ripe tomatoes are currently being used as a source for lycopene in the complementary medicines manufacturing
industry.157 Lycopene is the bright red pigment found primarily within the skin of the tomato.158 Tomato peels and
seeds are also abundant in phenolic compounds such as chlorogenic acid, rutin and naringenin. Seeds are also a
notable source for phytosterols and tocopherols.159 The majority of tomatoes are grown within Queensland (57%)
and Victoria (28%).160
Capsicum
Capsicum skin and seeds are a valuable source of lycopene, other carotenoids, tocopherols and capsaicinoids.161
Most capsicum is produced in tropical and sub-tropical areas, within Queensland, South Australia and Victoria.162
151 Strappe P, Wong R (2024) Isolation and characterisation of crocodile collagen peptides from farmed Australian saltwater crocodiles (Crocodylus porosus).
AgriFutures Australia.
152 Crocodile Farmers Association of the Northern Territory (2024) Crocodile farming industry strategic plan 2024 to 2033
153 Addi M, Elbouzidi A, Abid M, Tungmunnithum D, Elamrani A, Hano C (2022) An overview of bioactive flavonoids from citrus fruits. Applied Sciences, 12(1),
29. https://link.springer.com/article/10.1007/s11694-024-02779-1#Sec2
154 Nayana P, Wani KM (2024) Unlocking the green potential: sustainable extraction of bioactives from orange peel waste for environmental and health
benefits. Journal of Food Measurement and Characterization, 18, 8145–8162.
155 Cheok A, Xu Y, Zhang Z, Caton PW, Rodriguez-Mateos A (2022) Betalain-rich dragon fruit (pitaya) consumption improves vascular function in men and
women: a double-blind, randomized controlled crossover trial. The American Journal of Clinical Nutrition, 115(5), 1418-1431.
156 Northern Territory Government of Australia (n.d.) Pitaya: dragon fruit. (accessed 22 April 2025)
157 Boulaajine S, Hajjaj H (2024) Lycopene extracted from tomato - A review. Food Science and Technology, 12(1), 1-14.
158 Agarwal S, Rao AV (2000) Tomato lycopene and its role in human health and chronic diseases. CMAJ, 163(6), 739-744.
159 Szabo K, Dulf FV, Teleky B-E, Eleni P, Boukouvalas C, Krokida M, Kapsalis N, Rusu AV, Socol CT, Vodnar DC (2021) Evaluation of the bioactive compounds found
in tomato seed oil and tomato peels influenced by industrial heat treatments. Foods, 10(1), 110.
160 Hort Innovation (2019) Australian horticulture Statistics Handbook - Vegetables 2017/18. (accessed 22 April 2025)
161 Imran M, Butt MS, Suleria HAR (2018) Capsicum annuum bioactive compounds: health promotion perspectives. Bioactive Molecules in Food, Reference
Series in Phytochemistry. Springer, Cham.
162 Capsicum case study from: Rural Industries Research and Development Corporation (2010) Pollination Aware. The Real Value of Pollination in Australia.
(accessed 22 April 2025)
Table 5: Emerging bioactive sources
COMMODITY
POTENTIAL BIOACTIVES
Algae
Fish oil, containing omega-3 fatty acids
Cod
Cod liver oil and other fish oils, containing omega-3 fatty acids, vitamins A and D.
Australian native flora
Native plant extracts, containing phenolic compounds and vitamins.163
163 Mani JS, Johnson JB, Hosking H, Ashwath N, Walsh KB, Neilsen PM, Broszczak DA, Naiker M (2021) Antioxidative and therapeutic potential of selected
Australian plants: A review. Journal of Ethnopharmacology, 268, 113580.
4.5 Industry development insights
Bioactive extraction from agricultural and food by-products is an early-stage emergent industry with very few commercial
examples in Australia. The following section summarises industry development considerations and insights that were
identified through consultation.
Any development needs to prioritise
scale of supply, quality and price
While there is strong desire to source more
complementary medicines ingredients locally, industry
stakeholders have noted that the most important
factors regarding any new Australian supply chains
are that they are able to compete with incumbent
international suppliers in terms of supply volumes
and availability, as well as price and quality.
A staged approach may derisk scale-up
Industry stakeholders noted that a staged approach to
reaching extraction and isolation of pharmaceutical-
grade ingredients could help lower the risk and cost of
specialised facilities and equipment. Early stages of the
business model could focus on lower grade extracts
for use in the functional and fortified food industry as
a stepping stone towards higher value, higher purity
extracts for complementary medicines. This could allow
infrastructure and technical methodologies to develop
over time and may derisk the long-term business case.
Market trends can be short lived but
scaling-up production is a long game
While the complementary medicines market is
experiencing broader growth, specific bioactive
products are influenced by unpredictable market
trends and can often follow short-lived hype cycles,
which can make long-term investment challenging.
Collaboration is required across the
future supply chain
Complementary medicines manufacturers require
products made to specification and at appropriate scale
before entering into offtake agreements. Bioactive
extraction companies (e.g., vertically integrated
primary production or processing, or new businesses
established for purpose) need to understand these
specifications and future demand before investing in
building supply. Collaboration is essential to catalysing
these activities and driving industry development.
Enabling policy considerations can drive
development
Government can play a supportive role in enabling
industry development. Stakeholders noted areas
of focus include upskilling, financial incentives
for sending by-products to circular uses (e.g., tax
benefits), and developing a ‘Brand Australia’ presence
in complementary medicine export markets to drive
further growth.
Research and development is a priority
R&D is needed to ensure bioavailability of natural
extracted forms of bioactives, as well as to support
shelf-life claims for ingredients extracted from
by-products. Alongside this, R&D is critical to
informing the technical feasibility of extraction.
New businesses and business models
may be needed
Farmers, food processors and complementary
medicines manufacturers generally express a strong
enthusiasm for an innovative Australian bioactive
extraction industry. However, they are hesitant to take
leading roles where this is not their core business, and
they lack expertise and established capacity. While
dedicated innovation business units are one option
for larger companies, there may also be opportunities
for new players, including cooperatives and grower
groups, to establish themselves as bioactive extractors
and drive industry growth in value-added supply chains.
Nature-based risk assessments of supply
chains may yield valuable opportunities
Industry stakeholders noted that climate-related
disruptions are introducing supply chain vulnerabilities.
For example, ocean warming and El Niño events are
severely impacting the Peruvian anchovy industry,164
a major source of fish oil, and threatening the stability
of global fish oil supplies. The development of an
Australian fish oil production industry utilising fishery
by-products or sourcing from invasive cod species
may be a valuable opportunity to adapt supply chains
and minimise disruptions. Assessing supply chains
for climate change vulnerabilities is important both
in increasing industry resilience and in identifying
potential opportunities for Australian production.
Vitamins and essential minerals are
readily available in cost effective
synthetic forms
While important to the industry, commoditised
ingredients generally do not represent valuable
opportunities for Australia’s food and agricultural
sectors, as there is limited opportunity for a
viable premium.
164 Mollinari C (2024) Peruvian anchovy executive warns about problems in a country’s south fishing zone. Supply & Trade. Seafood Source.
(accessed 22 April 2025)
5 Next steps
While 30 preliminary opportunities were identified in
this report and five profiled, further analysis is required
to validate commercial feasibility prior to investment.
Critical to understanding commercial feasibility is
collaboration within industries (for example, grower
groups) and across supply chains. Conversations are
required between suppliers and complementary medicine
manufacturers to establish clear understandings around
product specifications, scale of supply and regulatory
requirements. Opportunity-specific analysis should
also include the development of priority actions to
unlock the new industry at the required scale.
Table 6 outlines the required activities and research
questions that need to be explored to inform
industry and government investment across a
staged process. Many of these considerations
have been informed by industry consultation.
Table 6: Next step activities and research questions
RESEARCH QUESTIONS
Preliminary
viability
1. Practicality – What practical considerations are relevant to the by-products and bioactives reported within this
analysis and how do they impact commercial feasibility?
For example, efficiencies from local clusters of by-products or growing regions, trade-offs from current by-
product use pathways (e.g., animal feed or ground cover), considerations around the physical collection and
aggregation of by-products (e.g., unharvested produce might require more labour or equipment, sanitation
considerations), or technical isolation efficiency.
2. Supply – What are the preliminary estimates on extraction efficiency? What are the estimates on the volumes
of supply of a bioactive each year? What is the minimum viable volume required to justify producing bioactives
from this feedstock? How does this volume compare with the volume required by Australian complementary
medicine manufacturers? How sensitive is pricing and supply to other external factors? Is this price competitive
with other industries looking to utilise these by-products as feedstock?
3. Price – What is the pricing goal? Based on discussions with buyers, and preliminary data on supply and
technology options, when might an ingredient reach price parity with incumbent suppliers?
4. Quality – What specification is required by the buyer? What extraction methodology is most suitable for the by-
product streams proposed? What equipment is required to facilitate this?
STAGE GATE 1: PRELIMINARY VIABILITY
Ecosystem
analysis
5. Partners – What organisations already have relevant technical equipment, and can they be partnered with?
What other organisations could be involved, either in supplying by-product streams or provision of services?
6. Value chains – What would new value chains need to look like? Are the logistics of aggregation viable? What
relevant infrastructure (storage, processing, extraction, etc.) is already available in the applicable region and
is additional infrastructure required for scaled operation? What (if any) new organisations would be required?
Who are the key buyers/off-takers?
7. International landscape – Who is involved in similar extraction, in terms of input crops, output bioactives, and
technical equipment requirements? What learning can be ascertained from their experiences?
STAGE GATE 2: ECOSYSTEM VIABILITY
Business
model
innovation
8. Scale-up – What pilot and scale up studies are required to demonstrate technical feasibility? Are there lower
value products (e.g., lower purity) along the same production trajectory that could be produced as a stepping
stone towards high value ingredients to derisk scale up?
9. Profitability – is the modelled volume of output and supply price economically viable considering the projected
costs of development? Where the opportunity used by-product streams from processing, are there mechanisms
to ensure primary producers capture value?
10. Regulatory considerations – What regulations are applicable to the development of the opportunity and how
does this impact feasibility?
Research
priorities
11. Research – Is research required to build the clinical evidence base and support demand (e.g., bioavailability
studies)? How can the research sector help industry develop new products (including shelf stability studies) and
establish cost-effective scale-up?
STAGE GATE 3: BUSINESS MODEL VIABILITY AND SUPPORTING RESEARCH
Appendix A –
Consulted organisations
CSIRO would like to thank all consulted organisations for
their contributions to this project through one-on-one
videoconference interviews and document reviews.
Tailored interview plans were developed for each interview,
which sought to gather views on opportunities of
untapped potential, key limitations, existing commercial
examples of bioactive extraction, broader business
impacts that bioactive extraction could pose on the
organisation, and quantitative model assumptions.
The insights expressed throughout this report were
developed by considering the collective views obtained
alongside independent economic and qualitative research
and may not always align with the specific views of one of
the consulted individuals or organisations. Listed below
are those organisations that consented to being named.
• Alkiira Therapeutics
• Australian Meat Processor Corporation (AMPC)
• AusVeg
• Avocados Australia
• Bega Group
• Blackmores
• Bowen Gumlu Growers Association (BGGA)
• CANEGROWERS
• Charles Darwin University
• Curtin University
• Extracta
• Grains Research and Development Corporation (GRDC)
• KPMG Australia
• Meat and Livestock Australia (MLA)
• Northern Territory Government - Department
of Agriculture and Fisheries
• Queensland Government - Department
of Primary Industries
• Sanitarium
• Swisse Wellness
• Vitex Pharmaceuticals
Appendix B – Supply value
analysis methodology
Overview
The objective of this analysis was to identify high-value
sources of bioactives from agricultural by-product streams
that may present significant market opportunities for
an Australian raw ingredients extraction industry.
Given the wide range of agricultural by-product
streams and bioactives in Australia, the analysis was
conducted in multiple stages to narrow the focus and
identify key opportunities. The process involved:
1. Prioritising bioactives
2. Selecting by-products streams
3. Estimating potential value of bioactives
in by-product streams
4. Validating value assumptions
The resulting validated opportunities were then
assessed and filtered based on their supply value,
technical development and level of Australian
investment. This process resulted in the development
of Table 3: Summary of preliminary 30 opportunities
which is intended to help identify opportunities for
future commercial research and investment.
Figure 8: Supply value model methodology overviewFigure 8: Supply value model methodology overview
Prioritising bioactives
The top 20 bioactives by global market size, reported
in Frost & Sullivan’s Global Nutraceutical Growth
Opportunity (2023), were selected for analysis, excluding
herbs and botanical ingredients (Table 7). This approach
helped ensure that only bioactives with clear market
demand and established applications were considered,
providing greater confidence that any value derived from
agricultural by-products would be commercially viable.
Stakeholders expressed strong interest in certain bioactives
during consultations. These were added to the analysis,
including: polyphenols, linoleic acid and broader carotenoids.
Some bioactives of similar nature were also grouped
together to assess whether their combined potential
value could be greater. This included grouping vitamins
by solubility (water soluble vitamins B and C, and lipid
soluble vitamins A, D, E), and grouping carotenoids
(retinol, Alpha-carotene, Beta-carotene, Cryptoxanthin,
Beta-carotene equivalents, and Xanthophyl).
Probiotics were excluded from analysis due to
their live nature and requirements for further
fermentation to reach ingredient volume needed
for complementary medicines manufacturing.
Table 7: Top 20 bioactives by global market size, excluding herbal and botanical ingredients
BIOACTIVE INGREDIENTS
2030 ($AU MILLIONS)165
2022-2030 (CAGR %)
Protein Ingredients (Dairy and Plant)
36,940
6.60%
Vitamin C
8,559
7.30%
B Vitamins
8,286
8.79%
Lutein & Zeaxanthin
6,158
11.10%
Vitamin E
5,728
4.10%
Probiotics
4,802
5.80%
Amino Acids
4,449
12.50%
Calcium
4,252
4.30%
Iron
3,678
8.30%
Prebiotics
3,405
7.30%
Collagen Peptide
3,188
11.20%
Vitamin A
2,888
5.80%
Vitamin D
2,349
4.80%
Magnesium
2,343
6.09%
Zinc
2,034
8.10%
CoQ1O
1,989
8.20%
Omega-3 Fatty Acids
1,982
2.50%
Melatonin
1,715
13.59%
Creatine
681
6.60%
Hyaluronic Acid
661
5.60%
Source: Frost & Sullivan, 2023
165 Converted using the average AUD/USD exchange rate for Q1 2023, as published by the RBA.
Selecting by-product streams
By-product streams represent the combine by-products
generated at a single stage of production or processing.
For example, the by-products of wine grape secondary
processing (wine making) are stalks, marc, and lees;
together constituting a single by-product stream.
The top 30 by-product streams by volume of low-value
by-products were selected for analysis (Table 8). This step
ensured that the by-product streams had sufficient volume
to support the potential scaling up of the identified
bioactive extraction opportunities.
Data was sourced and filtered from the Food Innovation
Australia’s National Food Waste Baseline (NFWB)
database,166 which includes information on nearly 500
agricultural by-products. The volume of low-value
by-products was calculated by multiplying the total
volume of a by-product stream (metric tonne) by the
percentage that went to low-value destinations.167
Avocados, blueberries, broccoli/baby broccoli, coffee,
and corn (maize) were included in the analysis due to
special interest raised during stakeholder consultations.
Estimating the potential value of
bioactives in by-product streams
This stage developed an estimate of the supply value of
bioactives within each shortlisted by-product stream.
This was approximated using the corresponding
whole food168 data in the Food Standards Australia
New Zealand’s (FSANZ) Nutrient database.169 This was
used to filter out bioactives which would be absent
from the commodity or were found in trace amounts;
too low to present a significant opportunity.
Further desktop research was conducted for bioactives not
available in the FSANZ database, including linoleic acid,
phenolic compounds, creatine, melatonin, CoQ10, and
collagen. These bioactive amounts were then multiplied by
the market price of each respective bioactive to generate an
initial value estimate. The top 30 were selected for further
validation of value estimates through desktop research.
166 FIAL (2021) National Food Waste Strategy Feasibility Study. – Final Report (accessed 1 April 2025)
167 Both the total by-product volume and the proportions directed to low-value destinations were taken directly from assumptions in the NFWB database.
168 e.g., using whole potato as a proxy for potato skin.
169 Food Standards Australia New Zealand (2022).
Table 8: Shortlisted by-product streams
COMMODITY
STAGE
BY-PRODUCTS
TOTAL VOLUME OF LOW-VALUE
BY-PRODUCTS (MT)
Almonds
Primary process
Hull
178,750.00
Avocados
Primary production
Field losses
670.57
Avocados
Primary process
Off-spec products
8,906.92
Avocados
Secondary processing
Skins and nuts
1,362.69
Barley
Primary production
Primary production losses
88,189.45
Barley
Secondary processing
Malt combinings
198,934.26
Barley
Tertiary processing
Manufacturing losses
175,314.62
Beef
Primary process
Protein meal, Trimmings
1,020,039.11
Blueberries
Primary production
Field losses
216.00
Blueberries
Primary process
Off-spec products
2,148.18
Blueberries
Secondary processing
Offcuts
181.62
Broccoli
Primary production
Field losses
6,400.79
Broccoli
Primary process
Off-spec products
2,627.62
Broccoli
Secondary processing
Stalks, offcuts
671.92
Canola
Primary process
Meal
212,178.04
Cauliflower
Primary production
Field losses
52,809.47
Chicken
Primary process
Protein meal, Trimmings
450,895.84
Coffee
Primary production
Field losses
0.00
Coffee
Primary process
Hull
2,828.57
Coffee
Secondary processing
Chaff
3,860.21
Corn (Maize)
Primary production
Primary production losses
3,272.07
Corn (Maize)
Primary process
Lost grain
1,117.01
Corn (Maize)
Secondary processing
Hominy feed
38,704.37
Cottonseed
Primary process
Meal
249,664.51
Cucumbers
Primary production
Field losses
75,013.60
Lamb
Primary process
Protein meal, Trimmings
92,481.68
Lentils
Primary process
Leave, stems, empty pods, broken or
discoloured bean
53,897.25
Mangoes
Primary production
Field losses
59,935.20
Milk
Secondary processing
Cheese scraps, Whey, Butter, Buttermilk
powder, Processing loss, other
manufacturing losses
2,547,903.15
Oats
Secondary processing
Oat husks
78,434.16
Olives
Secondary processing
Pomace
100,995.09
Oranges
Secondary processing
Pomace
107,524.94
Pork
Primary process
Trimmings, Protein meal
97,880.51
Potatoes
Primary production
Field losses
64,204.00
Potatoes
Primary process
Off-spec products
53,689.71
Potatoes
Secondary processing
Skins, offcuts, etc
207,827.77
Sugarcane
Primary production
Primary production losses
285,857.69
Sugarcane
Primary process
Bagasse, molasses
9,148,743.72
Sweet potatoes
Primary production
Field losses
53,171.31
Tomatoes
Primary production
Field losses
201,084.86
Watermelons
Primary production
Field losses
114,904.00
Wheat
Primary production
Primary production losses
175,904.52
Wheat
Secondary processing
Bran, Germ
406,396.78
Wheat
Tertiary processing
Bakery waste
187,751.44
Wine grapes
Secondary processing
Stalks, Marc, Lees
102,249.01
Validating value assumptions
This stage focused on refining the initial value estimates
for the top 30 by-product streams and bioactive
combinations with the highest potential bioactive value.
Some production data was updated using more recent
sources,170 such as ABS and ABARES, and averaged
across three years to provide a more reliable forecast
of potential production. Waste data continued to be
based on assumptions from the NFWB, with some
exceptions where specific assumptions were updated
to reflect more current or relevant information.
A literature review was also conducted to assess the specific
bioactive content of each by-product, replacing earlier
estimates that used whole food proxies. Where available,
bioactive content was cross-checked across multiple
sources to improve accuracy. In cases of wide variation,
the most reliable source with values aligned to the most
frequently reported range in the literature was used.
The pricing data used to determine supply value was
based on wholesale prices sourced from the public
domain. Pricing will be greatly influenced by intrinsic
product properties such as the chemical form and
formulation, purity level, manufacturing method and
source, external economic factors, and geopolitical
trends. While prices were cross-checked with key
industry users of these ingredients and found to be
within reasonable ranges, exact figures could not
be provided due to commercial confidentiality. As
such, all values should be considered as indicative.
Data limitations and
scope exclusions
Commodities and by-products excluded
from the analysis include:
• non-food agricultural commodities such as
forestry products and industrial hemp;
• potential bioactive sources that were grown for
use such as some algae and seaweeds; and
• those with limited characterisation or volume
data availability. For these, it is recommended
that future research and modelling be
undertaken when data is made available.
Opportunities were based on potential extraction
directly from a by-product. Where by-products could
be used as feedstock for the generation of bioactives
through alternative methods such as microbial
fermentation, these were not included for analysis.
Bioactive content can vary based on growing region,
seasons, environmental conditions, and agricultural
practices. While Australian research was used where
available, most data was sourced from international
publications due to limited local studies.
Bioactive content was expressed as the total amount
present in each by-product, which may differ from the
amount that can be extracted, as extraction efficiency
depends on the specific technology and methods used.
170 The NFWB used data from pre-2021 and may still reflect the impacts of COVID-related disruptions.
For further information
CSIRO Futures
Greg Williams
Associate Director
+61 3 9545 2138
greg.williams@csiro.au
csiro.au/futures
As Australia’s national science agency,
CSIRO is solving the greatest
challenges through innovative
science and technology.
CSIRO. Creating a better future
for everyone.
AgriFutures Australia
Building 007, Tooma Way
Charles Sturt University
Locked Bag 588
Wagga Wagga NSW 2650
+61 2 6923 6900
info@agrifutures.com.au
www.agrifutures.com.au