Milan municipality owns 23 covered markets that relate to a large general wholesale food market. These widespread neighbourhood food markets function as places for social interaction, product-distribution and urban culture. In order to move towards a more balanced interplay between agri-food production, markets, and the modern urban environment, Milan emphasises open innovation and circular transition in its municipal food markets. Through several co-creation workshops with a range of stakeholders, local authorities identified a range of challenges regarding waste management, surpluses redistribution and the potential of upcycled food; e.g. the lack of tracking of fruit and vegetables, the waste creation from single use transportation boxes and food waste as such.

Milan implemented a set of hardware and software solutions, which enable the market managers to track fruits and vegetable flows between wholesalers, market vendors, customers, and local organisations. The initiative also provides markets with reusable and trackable trays, which are scanned and weighted throughout the chain, and portray the flows of fruits and vegetables. By this, the market designs out single-use packaging and reduces waste production. A digitized dashboard, portraying the food flow, opens management opportunities for the market operator and single vendors to adjust the supply and demand of goods running through the markets. On top, the food can be redistributed to local charities. Food Market 4.0 is a number of combined actions, enabling sustainable market management, resulting in a circular flow of reusable packaging material, reduction of food waste and efficient redistribution of daily surplus food. 

The implementation of the Food market 4.0 demonstrates the benefits of the optimization of food flows in a municipal setting. The local actors and authorities are benefiting from accurate data collection and fostering a reduction in food waste and overconsumption, ultimately contributing to a decrease in food production. Milan’s municipal markets have consequently become more efficient and adapted to the modern consumerism and desire of sustainable cities, contributing to Milan's goal of 40% CO2 emission reduction by 2030.

REFLOW was an EU Horizon 2020 innovation action project running from 2019 to 2022, with the aim to increase circularity in European cities. Through REFLOW, the 28 project partners developed a range of solutions to make the material flows more circular within the six pilot cities of Amsterdam, Berlin, Milan, Cluj-Napoca, Paris, and Vejle. The cities' social, environmental, and economic impact was assessed, and a range of solutions enabling the circular transition were developed through active citizen involvement. The project combined the expertise of the project partners spanning municipalities, scientific and research institutions, technology providers, design and grassroot organisations, and small- and medium-sized enterprises.