The opportunity: By tackling food waste across the global retail supply chain through innovation and systemic efficiency, we uncovered a $540 billion opportunity to reduce food waste annually.2
The cost: Food waste costs across the supply chain (processing to retail) are, on average, equivalent
to 33% of business revenues. Without urgent action, this total cost is projected to reach a staggering $3.4 trillion by 2030.3
The double-loss effect: Fifty-four percent of leaders report these costs have risen in the last three years due to rising food inflation and geopolitical instability, creating a “double-loss effect.” Not only are retailers absorbing higher input costs, but by not addressing waste, they are also missing an opportunity to convert waste costs into potential sales.
The fresh food challenge: Perishables remain the biggest food waste challenge for retailers. Meat waste alone accounts for almost a fifth ($94 billion) of the opportunity, and 69% of businesses cite managing meat waste as a bigger operational concern than in previous years.
The gap: Despite the fact that 79% percent of leaders believe technology has the potential to unlock significant savings, the sector has yet to act at scale, revealing a significant gulf between ambition and execution that puts the immediate $540 billion opportunity at risk.
Three key themes
& recommendations
The retail sector holds the pivotal role in driving this transformation. The report is structured around three critical imperatives. Each chapter explores the issues and provides targeted recommendations to help retailers act now:
Chapter 1: A fresh perspective on improving food waste visibility
Understand the visibility gaps: Identify and address food waste visibility issues across
the value chain.
Collaborate across the chain: Engage suppliers and partners to create scalable solutions
to address the systemic causes of food waste.
Stay ahead of upcoming regulations: Stay on top of regional, national and local regulations to be ahead of mandated changes.
Chapter 2: The smart moves to unlock value in the supply chain today
Connect the physical and digital to uncover the food waste gap:
Leverage sensor technologies such as RFID to establish item-level visibility for inventory management and traceability purposes. Leverage reliable data sets for use in AI models to enable demand prediction and accurate forecasting.
Close the gaps in manufacturing and transport:
Leverage the Internet of Things (IoT) to cut errors at the processing stage and gain supply chain visibility.
Navigate the elements: Use packaging innovation to maintain freshness and adopt demand forecasting tools.
Chapter 3: Systemic issues addressed with long-term leadership
Leverage technology to extend shelf life: Fully embrace innovation that boosts transparency and maintains product quality.
Be prepared for peak season and changes in consumer trends: Create agility by using inventory intelligence to align stock with demand and minimize spoilage.
Empower people with tech: AI will augment human decision-making, but it needs to be fed with reliable data for businesses to make informed decisions and tell a transparent story to consumers.
The Path Forward: Transforming Food Waste into Measurable Value
The imperative is clear: Food waste is not solely an environmental and societal challenge, but a material, addressable barrier to growth. Retailers are uniquely positioned to lead a food waste transformation that turns loss into measurable value. By scaling item-level visibility and deepening supply chain collaboration now, the industry can mitigate the projected $3.4 trillion cost by 2030. With gains including the unlocking of immense value, securing operational resilience and driving lasting environmental and social impact, the time to act is now. Those who seize this opportunity will shape the future of food retail while boosting growth, margins and their reputation in an increasingly competitive landscape.
