The upcycled food industry is emerging as a sustainable solution to global food waste, transforming unused by-products into valuable, eco-friendly food ingredients. India, with its vast agricultural base and increasing awareness of sustainability, holds strong potential in this sector. While North America currently leads the market, India?s growing focus on ESG goals, supportive startup ecosystem, and availability of raw materials position it for rapid growth. Tamil Nadu, in particular, shows high promise due to its robust agri-processing industry and innovation-driven startups. However, the sector still faces challenges such as varying raw material quality, limited consumer awareness, and the absence of clear regulations. With new policies from FSSAI, rising investments, and increased consumer interest in sustainable food choices, India is steadily moving toward a circular economy. The upcycled food market thus represents both an economic opportunity and a crucial step toward a more sustainable food system.