Global Food Waste Presents Untapped Opportunity To Drive Business Growth

Tackling food waste could serve as a powerful driver of profitability, resilience, and long-term growth for global food retailers and supply chain operators, according to new research from Avery Dennison, which estimates food waste will cost businesses US$540 billion (£402bn) this year. 

If trends persist, cumulative food-waste costs between 2025 and 2030 could reach around US$3.4 trillion (£2.5 trillion), demonstrating both a major margin drain and a missed growth opportunity for retailers and supply chains, the report’s authors claim.

With better visibility and smarter interventions, such as item-level digital identification, retailers could reclaim value across the store. 

“The biggest, most immediate and most scalable opportunity to reduce waste lies in the grocery and food retail supply chain, especially in high-value categories like meat and fresh produce,” the report indicated. 

Over half of businesses surveyed (51%) cite poor inventory management and overstocking as key drivers of food waste in their operations. 

Many companies still lack visibility on where waste occurs, with 61% of respondents reporting limited insight across their end‑to‑end systems.

Perishables Under the Spotlight

Meat was identified as one of the three most challenging categories, with 50% of respondents naming it hardest for waste.

Fresh produce (45%) followed closely as a difficult category in terms of waste. 

In 2026, meat waste alone is expected to account for about US$94bn (£70bn) of losses, roughly a fifth of total food-waste cost. 

Fresh produce waste, meanwhile, is forecast to contribute a further US$88bn  (US$65.6bn) in losses during the same period.

Across a typical retail supply chain, food waste equates to about 33% of total revenue on average.

Some 54% of respondents said costs associated with food waste have risen over the last three years, while more than a quarter (27%) do not expect to meet the 2030 UN SDG 12.3 target to halve global food waste.

The Greatest Untapped Business Asset 

Far from being downbeat, however, the Avery Dennison report frames food waste as a business value driver rather than only a CSR issue. 

Around 73% of respondents view tackling food waste as a growth opportunity, with the study arguing that improved visibility and innovation can convert this historic cost into business value and resilience. 

“With item-level digital identification and end-to-end visibility, retailers can keep shelves stocked, retain loyalty and dramatically cut perishables waste — turning a historic operating cost into measurable value,” explained Deon Stander, President and CEO At Avery Dennison. 

Cutting waste improves margins, strengthens supply security and builds resilience in a world defined by shocks, added Paul Polman, Business Leader, and Climate And Equalities Campaigner.

“The future will belong to those who stop seeing waste as an inevitable cost and start treating it as the greatest untapped asset of our age,” emphasised Polman.

The Avery Dennison report was developed with the Centre for Economics and Business Research (Cebr) and is based on 3,500 retail leaders in seven countries, including the UK, the US, Germany, France, China, Brazil, and India.

Download the full report here.