Raisio Invests €4.5M in Grain Side Stream Upcycling for Novel Fiber Ingredients

Helsinki, Finland — 01 June 2026

Raisio Oyj has committed €4.5 million to a four-year project focused on converting grain processing side streams into functional fibre ingredients. The initiative, partially funded by a €1.8 million grant from Business Finland, aims to enhance resource efficiency and address consumer demand for fibre-rich products. This investment underscores a broader industry trend towards extracting higher value from existing raw materials, transforming what was once classified as waste into commercially viable ingredients.

The project, titled 'Valorisation of Grain Sidestreams for Functional Fibres', seeks to develop new healthy food solutions by creating fibre ingredients with both nutritional and technological benefits. According to Reetta Andolin, Raisio’s Chief Innovation Officer, the focus is on high-volume grain side streams like hulls and outer layers, which historically presented limited functional applications. The programme will scale technologies at Raisio's new pilot plant in Raisionkaari, Finland, and validate commercial applications, accelerating market entry for these novel ingredients.

By transforming abundant grain by-products, the project aims to reduce reliance on raw materials from potentially volatile regions, thereby bolstering supply chain resilience. This aligns with a growing industry emphasis on circular economy principles and sustainable sourcing. Raisio's participation in the Global Centre for Sustainable Bioproducts network, encompassing universities and industry partners across Europe, North America, and Asia, is expected to fast-track innovation and market adoption.

The initiative also directly addresses the prevalent 'fibre gap' in Western diets, where insufficient fibre intake remains a significant nutritional concern despite the established health benefits of dietary fibre. Andolin highlights fibre as a critical area for future food innovation, forecasting substantial international potential for these high-value upcycled ingredients. The collaboration with Finnish academic institutions, including Åbo Akademi University, the University of Turku, and Aalto University, will strengthen Raisio's expertise in this segment.

What this means for the United Kingdom

UK supplement manufacturers and brand owners should prepare for the emergence of new, sustainably sourced fibre ingredients, potentially impacting market positioning and sourcing strategies post-2029. Reformulation windows for products targeting gut health, satiety, and digestive support will become available, offering clean-label and sustainability claims. Procurement leads must monitor developments to assess new MOQs, lead times, and pricing models for these upcycled components, which could offer cost advantages over existing fibre sources. Opportunities exist for brands to differentiate through enhanced sustainability credentials and improved nutritional profiles, potentially capturing market share from competitors relying on less novel ingredients. Regulatory approval for novel food ingredients will be a critical hurdle, requiring close attention to FSA guidance.

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