America’s produce aisles gleam with perfectly shaped fruits and vegetables, but this cosmetic perfection comes at a staggering cost. Behind the scenes, approximately 40% of food produced in the United States goes uneaten, with much of this waste occurring before products even reach consumers. The culprit? Often, it’s nothing more than appearance.
I’ve spent the past week investigating how innovative companies are transforming this problem into profit, revealing a rapidly expanding market that’s projected to reach $10.8 billion by 2028, according to Fortune Business Insights. What was once discarded as “ugly” produce is now fueling a revolution in sustainable business models that promises to reshape our relationship with food by 2025.
“We’re seeing a fundamental shift in how consumers and businesses value food,” explains Dr. Emma Richardson, agricultural economist at Cornell University. “The ugly produce movement isn’t just about reducing waste—it’s creating entirely new market segments and supply chains.”
This transformation is happening through multiple channels. Companies like Imperfect Foods and Misfits Market have built subscription services delivering cosmetically challenged produce directly to consumers at reduced prices. Their business model creates a win-win scenario: consumers save money, farmers find buyers for previously unsellable crops, and perfectly edible food stays out of landfills.
The economic opportunity is substantial. According to ReFED, a national nonprofit dedicated to ending food waste, redirecting cosmetically imperfect produce could unlock over $2.1 billion in annual economic value while diverting millions of tons of food from waste streams.
During a recent visit to Baldor Specialty Foods in the Bronx, I witnessed firsthand how established food distributors are embracing this trend. Their “SparCs” program (that’s “scraps” spelled backward) transforms trim, peel and imperfect produce into value-added products rather than sending them to composting facilities or landfills.
Thomas McQuillan, Baldor’s former sustainability director who pioneered the program, told me: “The business case became clear very quickly. What was once considered waste now generates revenue while significantly reducing our disposal costs.”
Major retailers are taking notice. Walmart, Kroger, and Whole Foods have all experimented with selling imperfect produce sections in select stores. Although consumer reception has been mixed, early indicators suggest the approach is gaining traction, particularly among younger, environmentally conscious shoppers.
The Natural Resources Defense Council reports that food waste is responsible for approximately 8% of global greenhouse gas emissions. If food waste were a country, it would be the third-largest emitter after China and the United States. This environmental impact provides additional motivation for companies seeking to reduce their carbon footprint while improving their bottom line.
Beyond retail, the food service industry is finding creative applications for imperfect produce. Restaurant chains like Sweetgreen and Chipotle have incorporated these ingredients into prepared foods where appearance matters less than taste and nutritional value.
Technology is accelerating this transition. Artificial intelligence and machine learning algorithms now help companies better predict demand, reduce overordering, and identify alternative uses for products that would otherwise go to waste.
Full Harvest, a B2B marketplace connecting farms with food and beverage companies, uses digital platforms to create efficient markets for cosmetically imperfect and surplus produce. “We’re creating transparency and efficiency in what has historically been an opaque, relationship-based market,” explains Christine Moseley, the company’s founder and CEO.
The COVID-19 pandemic unexpectedly accelerated consumer acceptance of imperfect produce. When supply chains faltered and grocery store shelves emptied, many shoppers became less concerned with appearance and more focused on availability and value.
Despite this progress, significant challenges remain. Traditional supply chains aren’t optimized for handling cosmetically imperfect produce. Farmers lack incentives to harvest crops that don’t meet conventional appearance standards. And consumer education remains an ongoing hurdle.
“The biggest challenge is changing deeply ingrained consumer expectations,” says Dana Gunders, executive director at ReFED. “For decades, we’ve been trained to equate physical perfection with quality and safety, when the reality is that a slightly misshapen carrot is nutritionally identical to its prettier counterpart.”
Government policy is slowly catching up. Several states, including California and New Jersey, have enacted legislation aimed at diverting food waste from landfills, creating additional incentives for businesses to find alternative uses for imperfect produce.
Looking ahead to 2025, industry analysts predict significant growth in this sector. Venture capital has taken notice, with food waste startups attracting over $2 billion in funding during the past five years, according to PitchBook data.
What began as a niche movement has evolved into a mainstream business opportunity that addresses multiple challenges simultaneously: food insecurity, environmental impact, and economic efficiency. As one industry executive told me, “We’re not just selling funny-looking carrots—we’re reimagining the entire food value chain.”
For consumers, the message is simple: embracing “ugly” produce offers an accessible way to reduce environmental impact while saving money. For businesses, the equation is equally compelling: transforming potential waste into profit while burnishing sustainability credentials represents a rare alignment of economic and environmental interests.
As these business models mature and scale by 2025, ugly produce may no longer be considered an alternative option but rather a standard feature of America’s food system—a small imperfection solving a perfect storm of economic, environmental, and ethical challenges.
