The increasing food prices, the intensifying competition, and even the need for sustainable operation lead the players in the food sector to innovative strategies. Food Loss and Waste (FLW) is a major issue, which the solution could significantly contribute not only to the achievement of the Sustainable Development Goals (SDGs) but through the novel approaches also to the competitiveness and hence financial success of the actors. The FLW studies are often related to the production, while the retailers have not been broadly researched. Food upcycling has been emerging as an innovative solution, to transfer food loss into marketable food products. The current study analyses the surplus-based upcycled food products’ consumer acceptance and the competitive advantages that could be realized by the exploitation of this innovative approach. Following the PRISMA guidelines, some of the essential product features could be observed based on academic publications. The upcycled food is not well-known. Individuals who are environmentally conscious support the most this type of product. However, the low level of processing was seen as a desirable feature for everyone. Due to the low level of processing, technophobia should not hamper, but rather support the widespread of surplus-based products. Similar to conventional food, taste, sensory appeal, and price are those characteristics that can influence the consumers' decision-making. Without a significant increase in marketing expenditures, innovative retailers can influence the potential customer engagement through comprehensive and educational advertising. Offline presentations and trials are consistently more persuasive in involving customers, but the significance of online information sharing is equally important. These results imply, that innovative businesses by selling upcycled food could realize competitive advantages from multiple sources, while contributing to the SDGs too.