Okara Flour: Turning Trash into Sustainable Food Source

Just when you thought the world of food innovations couldn't get any weirder, along comes the latest exploding trend that's got a few eyebrows raising (mine certainly did): okara flour. That's right, the humble food waste is having its Cinderella momen and on its course of becoming a new IT of food. And well, as anyone who's ever suffered through a kale smoothie phase knows, sometimes potentially healthiest foods come from the most unlikely places. 

So let's take a closer look at the numbers and try to evaluate the potential here. 

_{Disclaimer: I discovered this and other trends using Exploding topics (I am an affiliate and a long-time fan of this tool), which has become my go-to resource for uncovering under-the-radar opportunities. While the tool doesn’t provide the research that comes with my newsletter If you're into finding even more trends in all the fields this tool is definitely worth a look.} 

Table of Contents

• Current state and financial opportunities

• Okara flour: key players

• Benefits and drawbacks

• How to navigate this trend and why should you care …

Current state and financial opportunities

And if you need any more proof that okara flour is having a moment, just take a look at these screenshots from Exploding Topics (with future forecasts of trend’s growth):

Searches for this fiber-packed wonder have skyrocketed recently, proving that consumers are suddenly very interested in getting their hands on some fancy bean dust.

So what's the deal with this okara flour? 

Okara is the pulp or fiber-rich byproduct that remains after extracting plant-based milk from legumes, grains, or nuts. This includes soybeans (the traditional source), almonds, oats, and other plant materials. It's the insoluble portion left behind after the liquid is strained, and it's packed with fiber, protein, and other nutrients.

I looked up some variations of this product on Amazon and found that okara flour on average serves up 20g of fiber and 7g of protein per serving, with only 3g of net carbs. It seems like a decent alternative to any gluten-free, keto-friendly flour.

The raw ingredients for this stuff? Dirt cheap. It’s basically garbage. 

There's a large amount of food waste in the United States, with high financial and environmental costs. Okara, which is produced in abundance by the plant-based milk industry, is often disposed of despite its high nutritional value. This means the raw ingredients for okara flour are potentially very cheap or even free for the taking. Which means the potential profit margins for okara products can be extremely lucrative.

A quick look at Amazon shows various okara products gaining traction.

While most of the variations of this product that are currently being sold on Amazon are imported from Japan there is one US-based contender, that seized an opportunity - Renewal Mill - company that feeds its client mostly garbage, turning “fibrous byproducts from food manufacturing into high value end-use goods,” as company’s founder and CEO Claire Schlemme diplomatically puts in on her LinkedIn profile.

The company just launched the product on Amazon in the beginning of September and already sold out at the moment of writing of this report.  

But before you rush off to buy a soybean farm, let's take a step back and consider the bigger picture. The rise of okara flour isn't just about making a quick buck (although, let's be honest, that's a nice perk). It's part of a larger trend towards sustainability in the food industry.

 As UNDP calculated/planned, shifting the way we produce and consume food to align with climate and nature targets requires an annual investment of $350 billion by 2030.

So, what's an aspiring food entrepreneur to do with this information? Well, if you're looking to get in on the ground floor of the next big thing in sustainable food, okara flour might just be your golden ticket. 

Okara flour: key players

The okara flour market in the United States is notably underdeveloped, presenting a significant opportunity for entrepreneurs and investors. As of now, there's only one company in the US that's venturing into this space, and they're not even specifically focused on okara: as mentioned above, it’s Renewal Mill. This company is on a mission to "fight climate change from your kitchen. While they work with okara, it's just one part of their broader focus on upcycling food byproducts. They've managed to turn okara into various products like flour, baking mixes, and cookies. Interestingly, they've gained enough traction that "okara flour renewal mill" has become a separate search term on Google.

The fact that Renewal Mill isn't exclusively dedicated to okara products proves the massive potential: there's room for a company to step in and specialize in okara-specific products like waffles, pancake mixes, cookies, muffins, and more.

This lack of specialized competition in the US market is practically begging for an entrepreneur to come in and claim the okara crown. 

While the US market is wide open, it's worth noting that okara has a longer history in some Asian countries, e.g. in Japan, a well-established blue zone.

As for the broader context, major food corporations, companies like Danone, PepsiCo, Cargill, and Nestlé, while not specializing in okara, have made commitments to scale up regenerative agriculture practices as part of the COP28 Action Agenda on Regenerative Landscapes. So while they haven't directly entered the okara flour market, their focus on sustainability suggests they might be keeping an eye on innovative ingredients like okara (or at the very least invest in it).

So if you put aside some real moral dilemmas and choices like seriously saying that grass-fed meat that has all aminoacids and almost all vitamins that humans need is going to kill you and hyper-processed plant based food is somehow a healthier choice - the opportunities like okara flour is massive. 

And there are tons of agriculture VCs focused on sustainability. Some of them can be found here, here, or here, but well a simple google search will do.

Benefits and drawbacks

On the plus side, okara flour isn't just another trendy superfood that promises to cure all your ailments while making you look 10 years younger (yes, I am looking at you, acai berries). No, this humble leftover actually has some science backing it up.

For starters, a 12-week study on Japanese adults found that chowing down on soymilk-okara powder led to a significant reduction in body fat (0.9% on average) and an increase in muscle mass (0.6 kg). It's like hitting the gym, but with less sweat and more soy.

It's also proven to be a prebiotic powerhouse, promoting the growth of good gut bacteria and potentially helping prevent a laundry list of various health conditions including diabetes, hyperlipidemia, and obesity. 

And if you're worried about your liver and kidneys (because who isn't these days?), okara's got your back there too. It may help improve liver and kidney function, which is great news for anyone who enjoyed their college years a little too much.

But let's not put okara on too high a pedestal. It's got its quirks. For starters, let's talk about taste and texture. Okara with a slightly gritty texture and a bean-like flavor that might not win any culinary awards. It's the beige wallpaper of the food world – functional, but not exactly thrilling. 

If you're allergic to soy or nuts, okara flour sometimes won’t be your friend. Oh, and did I mention that okara has been used as silkworm food and in ceramic production? Because nothing says "versatile" quite like being equally at home in a smoothie bowl or a silk factory.

How to navigate this trend and why should you care?

The global food market is projected to hit $9.09 trillion in 2024. And with sustainability on everyone's mind (or at least on their Instagram feeds), products like okara flour are perfectly positioned to carve out their own slice of this massive pie, since okara flour is riding the wave of several major trends:

1. Sustainability: Big players like Barilla, Heineken, and Mars are falling over themselves to prove their eco-credentials. Okara flour turns waste into gold - it's the sustainability equivalent of pulling a rabbit out of a hat.

2. Health and wellness: With studies showing okara can help manage blood glucose levels in diabetics and combat obesity, it's ticking all the right boxes for health-conscious consumers.

3. Plant-based boom: As more people jump on the plant-based bandwagon, okara flour offers a protein-packed, fiber-rich alternative that doesn't involve pretending tofu tastes like chicken.

4. Anti-aging: Japan, where okara is a dietary staple, is a well-established blue zone. Coincidence? Maybe. A great marketing angle? Absolutely.

But with prices ranging from $8-15 per pound and limited availability, should you jump on this trendy flour alternative?

Here's how to navigate this trend:

Know if okara flour might be right for you:

• You're looking for high-fiber, low-carb alternatives

• You follow a gluten-free or keto diet

• You're interested in sustainable food choices

• You want to increase protein in baked goods

• You're looking to support gut health

What to look for when buying:

• Source of okara (soy, almond, or other legumes)

• Processing method (should be clearly stated)

• Proper storage instructions

• Certification for gluten-free if needed

• Manufacturing location (impacts freshness)

Save money while exploring okara:

• Start with small quantities to test recipes

• Mix with regular flour for better texture

• Look for bulk buying options

• Store properly to prevent spoilage

• Consider making your own from soymilk pulp

Smart usage tips:

• Start with tested recipes specifically for okara flour

• Use in combination with other flours (usually 1:3 ratio)

• Add extra liquid to recipes (it's very absorbent)

• Expect a slightly beany taste in some applications

Will okara flour become the next quinoa, taking over health food stores and confusing pronunciation everywhere? Can we find even more uses for it, perhaps as a renewable energy source or a replacement for cement?
One thing's certain - while okara flour is an exciting addition to the alternative flour scene, it's not a magic ingredient. Start small, experiment with recipes, and see if it fits your lifestyle and taste preferences.