The cost of global food waste could reach US$540 billion by 2026.

The report "Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability," published by Avery Dennison, a global materials science and digital identification solutions company, warns that the cost of food waste throughout the global supply chain could reach US$540 billion by 2026, up from US$526 billion the previous year. Furthermore, the study's results show that, on average in Brazil, the costs associated with food waste are equivalent to 32% of total annual revenue in the food retail supply chain, from harvest to point of sale. The research, which surveyed 3,500 food retailers and supply chain leaders worldwide, reveals that despite increased awareness, 61% of companies still say they lack complete visibility into where waste occurs in their operations. The limited ability to influence the points in the chain with the highest levels of loss is a recurring challenge, reinforcing the urgent need for targeted innovation and collaboration among the different links in the chain. Data shows that leaders face constant challenges at different points in the supply chain, especially in the perishable goods segment. When asked about the three most difficult categories to manage in terms of waste, 50% pointed to meats, 45% fruits and vegetables, and 28% bakery products. More than half (51%) of business leaders indicated that inventory management and excess inventory contribute significantly to waste within their operations. Transportation emerges as a common factor across different perishable categories; 56% of companies state they do not have a clear understanding of how much waste occurs during product movement. Addressing this challenge requires a combination of solutions that includes item-level inventory visibility, demand forecasting, and real-time shelf-life management. If current trends continue, the cumulative cost of food waste between 2025 and 2030 could reach US$3.4 trillion, coinciding with the 2030 deadline of UN Sustainable Development Goal 12.3, which seeks to halve global food waste. Despite this objective, the report reveals that 27% of leaders believe they will not be able to achieve the goal within the established timeframe. For Flavio Marqués, Director of Marketing, Sales and Communications for Latin America at Avery Dennison, food waste should no longer be treated as an unavoidable cost for retail. According to Flavio, the combination of a lack of visibility throughout the supply chain and low adoption of innovations has contributed to significant—often invisible—losses that directly impact company margins. “To overcome a challenge, especially one as impactful as this, the first step is to understand the problem. And this proves to be the first difficulty, since 61% of retail leaders are not even aware of the adversities, which prevents them from working to overcome them. With the right innovation, it is possible to transform this loss into measurable value and reposition food waste: from a topic exclusively linked to sustainability to a critical business issue, capable of generating efficiency and growth throughout the chain. In Brazil, for example, the cost of food waste throughout the supply chain impacts, on average, 32% of the total revenue of companies in the country, which demonstrates a significant possibility for revenue growth.” :: A high-cost challenge intensified by market fluctuations. Meat stands out as one of the most difficult categories to manage. In Brazil, about 72% of supply chain leaders point to this category as the main challenge. Due to the high unit cost in food retail, even small reductions in waste can generate significant financial gains. Independent economic projections indicate that meat waste could represent US$94 billion in losses in the global supply chain by 2026, almost a fifth of the year's total economic impact, followed by fruits, vegetables, and greens, with US$88 billion. For retailers, economic volatility, the difficulty of adapting quickly to market changes, and the challenge of keeping up with fluctuations in consumer behavior intensify problems related to food waste. In this scenario, 74% of respondents say that inflation has made it more difficult to predict the demand for meat, while 73% point to an increase in demand for smaller portions or alternatives to animal protein. In other words, the current context is reshaping the consumption profile: consumers have begun to opt for smaller quantities and/or protein sources that are more affordable for the family budget, a movement that directly impacts both profitability and waste levels in retail. “For a long time, food waste has been treated almost exclusively as an environmental and social issue. It also involves business and represents a great opportunity, both globally and in Brazil. The US$540 billion in lost value should serve as a clear call to action for the food retail supply chain to reduce losses and increase efficiency,” explains Flavio Marqués. 

This text was translated by machine from Brazilian Portuguese.