Building Business Resilience through New Value Chains from Side Streams
In September 2025, Arctic Food Arena visited Iceland to meet The Iceland Ocean Cluster and the greenhouse pioneer Fridheimar: two strong examples of how Iceland creates value from local resources through collaboration, innovation, and sustainable business models.
Diversifying products and developing new value chains from side streams, from fish to tomatoes, not only reduces waste but also creates stronger, more resilient businesses.
This approach reflects the principles of The Iceland Ocean Cluster’s 100% Fish concept, which aims to fully utilize every part of the catch – turning what was once waste into high-value products – and Fridheimar’s model of resource-efficient greenhouse production.
Photo: Oliver Ottvall, Project Lead Arctic Food Arena
Six examples of how these side streams unlock entirely new markets
Exploring the potential of fish eye fluid
As part of the 100% Fish vision, even the most unexpected parts of the catch are being explored for new applications. Researchers in Iceland have studied the properties of fluid from fish eyes to understand its composition and potential uses.
Experiments have examined aspects such as antiseptic properties and biochemical components like trace amounts of valuable oils.
Accelerating Healing with Fish Skin Wound Dressings
One promising application emerging from the circular innovation model, embodied by The Iceland Ocean Cluster’s 100% Fish concept, is the use of intact fish skin as advanced wound dressings. Icelandic biotech company Kerecis has pioneered this by transforming skin from wild Atlantic cod into clinically proven grafts used to treat complex wounds, including diabetic foot ulcers, burns, vascular lesions, and surgical wounds. These fish-skin grafts provide a natural, porous scaffold rich in beneficial components such as proteins, omega-3 fatty acids, elastin, and glycans. Together, these elements support tissue regeneration and help reduce scarring.
Did you know?
Did you know that there is little to no risk of viral transfer between cod and humans? This makes cod skin a uniquely safe and sustainable material for medical use. By turning what was once considered waste into life-changing healthcare products, Kerecis shows how circular innovation can create both environmental and medical value.
Tomato Salt – From Surplus to Specialty
At Fridheimar, nothing goes to waste. Dried tomatoes are blended with Icelandic sea salt to create tomato salt, a seasoning that captures the essence of Friðheimar’s greenhouse production.
Did you know that tomato salt is one of Fridheimar’s most popular products to take home? It is used in their greenhouse restaurant and sold in their farm shop, offering visitors a unique way to experience Icelandic flavors while reducing food waste.
Omega-3 Supplements from Fish Oil
For decades, Iceland has been a global leader in omega-3 production, turning fish oil into high-quality health products. Lýsi, one of Iceland’s most established companies, refines fish oil from sustainably harvested species such as cod and herring. Their products are used worldwide as dietary supplements, supporting heart, brain, and immune health.
By processing what was once a low-value by-product, Lýsi demonstrates how circular innovation can create long-term value for both consumers and the fishing industry. This approach aligns closely with the 100% Fish vision, where every part of the catch is utilized to its fullest potential.
Tomato Beer (Tómatbjór) – Innovation from the Greenhouse
At Fridheimar, innovation goes beyond growing fresh produce. Known for their high-tech greenhouses powered by geothermal energy and glacier water, the family-run company has also expanded into product development, creating unique offerings that reflect resource efficiency and circular thinking.
One example is their tomato beer, brewed using tomatoes from their greenhouse production. By turning excess produce into a specialty beverage, Fridheimar reduces waste while adding value to their harvest. The tomato beer is served in their greenhouse restaurant and sold in their farm shop, illustrating how side streams can become high-value products and create new opportunities for sustainable business growth.
Collagen Supplements from Cod Skin
Through the 100% Fish concept, even fish skin, traditionally seen as waste, is transformed into high-value products. Icelandic company Codland, founded within The Iceland Ocean Cluster, specializes in extracting marine collagen from wild Atlantic cod skin. This collagen is then used in dietary supplements, cosmetics, and functional foods, with applications ranging from joint and bone health to skin care.
Codland’s work has inspired a new wave of Icelandic innovations. Brands like Feel Iceland produce premium collagen powders and capsules, while COLLAB combines marine collagen with caffeine in a unique functional energy drink. By converting a side stream into these kinds of consumer goods, Codland and its partners show how circular innovation can unlock entirely new markets while reducing waste and increasing the overall value of each catch.
Further reading
This CBC feature from 2017 explores Iceland’s journey to fully utilize every part of the fish. The story highlights ideas that inspired the 100% Fish concept and continue to influence circular innovation today.