The magnitude of global food waste is staggering. A new report indicated that food waste is costing retailers and suppliers over half a trillion dollars annually.
What's happening?
Avery Dennison's report, "Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability," predicted that the cost of global food waste will reach $540 billion a year by 2026.
As New Food noted, that's up $14 billion from 2025. It's discouraging news for goals on this front, such as the United Nations' 2030 deadline to cut food waste in half.
The research's findings were derived from 3,502 senior figures in the industry from the United Kingdom, the United States, Germany, France, China, Brazil, and India.
Global food waste sharply cuts into the margins of suppliers and retailers. The report revealed it equates to 33% of revenues each year across the food retail supply chain. It's getting harder to get to the bottom of it, too.
A disappointing 61% of businesses reported a lack of visibility into where waste occurs, even as this report and others have shone a bright light on the issue. The most troubling categories were clearer.
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Meat was identified as a primary concern by 72% of supply chain leaders, with produce next. Meat waste alone is projected to account for $94 billion in lost output globally by this year, and produce is on its heels at $84 billion.
The respondents identified inventory management and waste during transit as major contributors to the problems. Overstocking, as consumer demand ebbs and flows with inflation and changing preferences, is another factor.
On the transit front, more than half the companies admitted they didn't have a firm handle on their contributions.
Why is global food waste important?
Not only does global food waste cost suppliers and businesses billions, but it also affects all of us.
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Definitely 👍 It's a missed opportunity to better feed people as global food insecurity is on the rise. Many aspects of food production are facing increasing challenges due to unpredictable weather conditions, including record heat and severe droughts.
The wasted food also doesn't just go away. It can end up in landfills, where it contributes to the production of methane pollution. It also impacts everything on the front end, as all the resources and pollution used in food production go to waste when it's tossed out.
What's being done about global food waste?
Julie Vargas, an executive at Avery Dennison, has an optimistic outlook on how the industry can turn the tide.
"Food waste has become an accepted cost of doing business, but it doesn't have to be," Vargas said, per New Food. "Innovation exists today to help overcome the complexity of food waste by unlocking new possibilities and transforming a historic operating cost into measurable value."
Responsible moves that businesses can take include partnering with organizations to donate food before it spoils or selling it to consumers at a discount. Suppliers can also tighten operations, better predict demand, and partner with food banks.
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