From Cosmetic Standards to Circular Value: A Systematic Review of Business Strategies for Suboptimal Foods

Abstract

ABSTRACT Suboptimal foods, that is, safe and nutritious products that deviate from market standards because of cosmetic defects, packaging damage, or proximity to date labels, constitute a major source of avoidable food waste. Evidence on how firms can reduce this waste and capture value still remains fragmented across disciplines and supply‐chain stages. We conduct a PRISMA‐guided systematic literature review of empirical research on interventions addressing suboptimal foods, drawing on business strategy, marketing, operations, and sustainability studies. Using thematic synthesis, we classify interventions along the food waste hierarchy and map them across upstream and downstream supply‐chain stages. The literature concentrates on prevention‐oriented approaches (pricing, packaging and labeling, assortment and placement, communication, nudging, inventory and logistics, and coordination), while reuse strategies (reprocessing and redistribution) receive less attention and are rarely evaluated at scale. Across contexts, isolated interventions often underperform, and stronger outcomes emerge when marketing levers are aligned with operational practices and governance choices (e.g., procurement standards, forecasting, and channel design). Retailers act as pivotal gatekeepers by setting quality norms that shape both upstream production and downstream consumer expectations. We synthesize the main mechanisms, trade‐offs, and boundary conditions and outline an agenda for more field‐based, cost‐sensitive, and cross‐country research. Overall, managing suboptimal foods should be treated as a strategic capability to embed waste prevention into business models that jointly advance environmental performance and competitive advantage.