The economic cost of food waste across the global supply chain is forecast to reach $540 billion by 2026, according to new research.
The ‘Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability’ report, published by Avery Dennison, warns that that the cost of food waste is set to rise from $526 billion last year.
The report also found that, on average, food waste costs account for 33% of total revenues in the food retail supply chain annually, from post-farm to the point of sale.
Michael Colarossi, VP, head of enterprise sustainability, Avery Dennison, commented: “For too long, food waste has been positioned almost exclusively as a sustainability and societal issue. We must recognise it as the business opportunity it truly is.”
55% of companies surveyed also reported that they do not have a clear understanding of how much food waste happens when goods are being transported.
Meat also emerged as one of the most difficult categories for waste management, with 72% of supply chain leaders surveyed citing it as their biggest challenge.
The economic modelling forecasts meat waste to amount to $94 billion in lost output across the global supply chain in 2026, almost one-fifth of the total cumulative loss across the year, with fresh produce closely behind at $88 billion.
The research, which surveyed 3,500 global food retailers and supply chain leaders, also found that 61% of businesses say they lack full visibility into where food waste occurs across their operations.
Commenting on the report, Julie Vargas, Avery Dennison, said: “Food waste has become an accepted cost of doing business, but it doesn’t have to be.”
“With the right innovation, we can turn this loss into measurable value and shift the conversation on food waste, from being purely seen as a sustainability issue, into a business-critical one.”
