Around one-third of all food produced globally is lost or wasted each year, representing an estimated US$1 trillion in value, according to the FAO. A substantial portion of this waste occurs at the retail level, where large quantities of edible food are discarded despite remaining safe for consumption. This disconnect highlights a persistent inefficiency in food systems, where surplus products are not effectively redirected before they become waste.
Food waste is not only environmentally unsustainable but also financially burdensome for retailers. When products go unsold, businesses lose potential revenue, and they must also bear the additional costs associated with disposal, including transport and waste handling. These combined pressures make surplus food management an important economic issue, not just a sustainability concern.
A recent analysis from the University of Copenhagen sheds light on how retailers can approach this challenge more strategically. Focusing on Danish supermarkets, the study finds that at least half of all surplus food is currently discarded. Although part of the analysis draws on data from a limited number of retail chains, the overall findings point clearly to more efficient alternatives that can reduce both waste and costs.
The research challenges the common assumption that donating surplus food is primarily a charitable act with little financial return. In reality, once retailers determine that products are unlikely to sell at full price, donation often becomes the more economically rational choice. In many cases, it is simply cheaper to give food away than to throw it out, suggesting that financial and social benefits can align more closely than often assumed.
Timing plays a critical role in maximising value from surplus food. The analysis shows that early price reductions are typically the most profitable strategy. When retailers discount products a few days before their expiry date, they can significantly increase the likelihood of sale. Even modest reductions, such as around 15%, are often enough to convert potential losses into gains, as more items are sold instead of being discarded.
The financial returns from these strategies can be substantial. Across most product categories, discounted sales generate net gains of approximately €0.3 to €0.8 per kilogram, with even higher returns—sometimes exceeding €1.3 per kilogram—for fresh meat, fish, and processed meat products. However, not all items respond equally; liquid dairy products and dry goods are less likely to generate surplus value through price reductions, indicating the need for tailored approaches across product types.
When products are too close to expiry to be sold, donation emerges as the next most cost-effective option. Disposal typically costs retailers between €0.27 and €0.36 per kilogram, while donation costs average €0.14 to €0.23 per kilogram, resulting in meaningful savings. Beyond these direct financial benefits, donation also creates significant social value, with redistributed food contributing an estimated €1 to €5 per kilogram to support vulnerable populations. Overall, the findings demonstrate that reducing food waste and improving profitability are not opposing goals but can, in fact, reinforce one another when managed effectively.
More information: Jørgen Dejgård Jensen, Food Waste Prevention and Economic Incentives to Redistribute Surplus Foods from Food Retailing, Journal of Food Products Marketing. DOI: 10.1080/10454446.2025.2584844
Journal information: Journal of Food Products Marketing Provided by University of Copenhagen