According to the report published by Virtue Market Research in The Surplus Food Market was valued at USD 56.8 billion in 2025 and is expected to grow at a CAGR of 7.8% over the forecast period, reaching an estimated USD 82.69 billion by 2030.
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The surplus food market is growing because people and businesses no longer want good food to go to waste. Around the world, farms, factories, grocery stores, hotels, and restaurants often have extra food that is safe to eat but cannot be sold in the usual way. This may happen due to packaging changes, seasonal demand shifts, or small cosmetic flaws. Instead of throwing this food away, companies are finding ways to redirect it to food banks, discount retailers, processing units, and online resale platforms. A strong long-term driver for this market is the global push to reduce food waste and improve sustainability. Governments are setting stricter waste rules, and many companies have public goals to cut waste and carbon emissions. Surplus food recovery helps lower landfill use and reduces methane emissions. It also supports food security for low-income families. During the COVID-19 pandemic, the market faced a sudden disruption. Lockdowns closed restaurants and hotels, causing large volumes of fresh produce and dairy products to lose their main buyers. At the same time, demand from grocery stores and food banks increased sharply. Supply chains had to adjust very quickly. Many producers turned to surplus food channels to avoid total losses. Digital platforms and local redistribution networks became more active. While the early months of the pandemic created confusion and waste, they also showed the importance of flexible surplus systems. After the crisis phase, more structured partnerships were formed between suppliers and redistribution groups.
In the short term, inflation and rising food prices are acting as a key driver for the surplus food market. As household budgets become tighter, more consumers are willing to buy discounted surplus food. These products are often sold at lower prices even though they remain safe and high in quality. This shift in buying behavior supports the growth of surplus grocery stores and online flash-sale platforms.
Segmentation Analysis:
By Type: Prepared Food, Unprepared Food, Packaged Food
The surplus food market by type shows clear variation in how extra food moves across the system. Prepared food holds the largest share in this segment because restaurants, catering units, and quick service outlets often produce meals in bulk, and not all portions are sold within the same day. These ready-to-eat items are quickly redirected through discount counters, donation groups, or food rescue apps. Unprepared food, which includes fresh fruits, vegetables, grains, and raw meat, forms a steady portion of the market as farms and wholesale markets regularly face excess supply due to weather shifts or demand gaps.
By End-User: Food Service Providers, Retailers, Households
The surplus food market by end-user reflects how different groups handle extra stock in unique ways. Retailers account for the largest share in this segment because supermarkets and hypermarkets manage wide product ranges and high daily footfall. Unsold bakery items, near-expiry dairy, and seasonal goods are commonly redirected to secondary shelves or community partners. Food service providers, including hotels and institutional kitchens, contribute a significant volume as well, especially after large events or buffet services, where demand can shift suddenly. Households represent the fastest growing during the forecast period as awareness campaigns and mobile platforms encourage families to resell or donate excess groceries.
By Distribution Channel: Online, Offline
The surplus food market by distribution channel shows a balance between traditional systems and digital pathways. Offline channels hold the largest share in this segment because physical discount stores, warehouse outlets, and food banks remain the primary points where surplus goods are collected and redistributed. Many buyers prefer to inspect food quality in person before purchasing, especially for fresh produce. Trucks and local depots continue to serve as central hubs for sorting and reallocation. Online channels are the fastest-growing during the forecast period as technology reshapes how surplus is discovered and claimed. Mobile apps send alerts about unsold meals, flash deals, or bulk surplus lots available within a short radius. Digital payment systems and location tracking make transactions smoother and quicker. Small vendors can now upload surplus inventory in real time, reaching buyers who might not visit physical outlets. This blend of convenience and speed is pushing online participation upward across urban centers.
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Regional Analysis:
The surplus food market across regions displays different levels of structure and maturity. Europe is the largest in this segment due to strong policy frameworks that support waste reduction and organized redistribution networks. Many countries in this region have formal agreements between retailers and food charities, which increases consistent supply flow. North America follows with advanced logistics systems and growing consumer participation in surplus purchasing programs. Asia-Pacific is the fastest growing during the forecast period as urban expansion, rising food consumption, and improved cold storage facilities create both surplus generation and recovery capacity. The rapid growth of digital marketplaces in major cities supports this expansion. South America shows gradual development with community-based redistribution efforts gaining ground. The Middle East & Africa region is witnessing emerging initiatives focused on food security, particularly during religious gatherings and seasonal events where surplus volumes can rise sharply.
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Latest Industry Developments:
- Companies Are Expanding Market Share Through Collaborative Digital Matching Systems: The surplus food market is seeing a trend where digital matching systems connect excess food suppliers with buyers, charities, and communities using real-time apps. These platforms improve efficiency by showing available surplus within minutes, allowing foodservice outlets, retailers, and households to quickly list items and connect with local demand. Real-time inventory updates, integrated payments, and geolocation tools make these systems increasingly attractive to participants. This trend not only strengthens redistribution networks but also increases participation by younger consumers who prefer convenient, app-based solutions for surplus food access and sustainability engagement.
- Strategic Use of Advanced Waste-Tracking Technologies to Optimize Redistribution: Another trend focuses on deploying advanced waste-tracking technologies across supply chains to enhance market share. Sensors, AI tools, and IoT devices are being used to monitor quality, shelf life, and spoilage risk in real time. These technologies support decision-making on when to move food into surplus channels or repurpose products before spoilage. By integrating analytics with logistics, stakeholders can reduce losses and efficiently allocate surplus to redistribution partners or secondary markets. This data-driven approach helps attract new partners and improves the reputation for sustainability performance.
- Partnerships With Logistics and Circular Reuse Networks to Broaden Reach: A growing strategic trend involves forming partnerships with logistics providers and circular reuse networks to expand how surplus flows through the system. Collaborations between surplus platforms, transportation companies, and food recovery organizations enable faster pickup and delivery, especially for perishable items. In addition, alliances with upcycling initiatives and community groups help turn surplus into value-added products. These multi-sector connections increase market visibility and participation by offering diverse channels for surplus food, reinforcing both redistribution capacity and long-term engagement across stakeholders.