Economists estimate that the cost of food waste across the entire supply chain-from processing to retail - is equivalent to 33% of total revenue
Food waste remains one of the most costly yet often invisible challenges in the global retail supply chain. According to the report “Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability”, published by Avery Dennison, a global leader in labels, adhesive materials, and digital identification solutions, the economic impact of food waste is projected to reach $540 billion in 2026, up from $526 billion in 2025. The research, conducted with 3,500 food retailers and supply chain leaders worldwide, shows that, on average, the cost of food waste accounts for 33% of total revenue in the food retail sector, covering all stages from post-farm operations to the point of sale.
The blind spots of food waste
The study highlights that 61% of supply chain and retail leaders admit they do not have a full view of where waste occurs along the entire chain. Transit emerges as a major cross-cutting blind spot, with 56% of companies lacking clear visibility on waste generated during product transportation. This issue is particularly acute for perishable categories, including meat (50%), fresh produce (45%), and baked goods (28%), which leaders identify as the most challenging areas to manage. Additionally, more than half of respondents (51%) indicate that stock management and overstocking contribute significantly to waste, underscoring the need for integrated solutions such as item-level visibility, demand forecasting, and real-time shelf-life management.
If current trends continue, the cumulative cost of food waste from 2025 to 2030 could reach $3.4 trillion, coinciding with the 2030 deadline for the UN Sustainable Development Goal 12.3, which aims to halve global food waste. However, over a quarter of leaders (27%) acknowledge that they are unlikely to meet this target
Meat: the most challenging category
Meat emerges as the most difficult category to manage, with 72% of supply chain leaders citing it as their primary challenge. Given its high unit cost, even small reductions in waste can generate significant financial gains. Estimates indicate that in 2026, meat waste will reach $94 billion, nearly one-fifth of the total, followed closely by fresh produce with $88 billion in losses. Economic pressures and shifts in consumer behavior further exacerbate the problem: 74% of retailers report that inflation makes it harder than ever to predict demand for fresh meat, while 73% observe growing demand for smaller portions or meat alternatives.
Food waste as an opportunity
According to Michael Colarossi, VP of Enterprise Sustainability at Avery Dennison,
“For too long, food waste has been viewed almost exclusively as a sustainability or societal issue. In reality, it represents a significant growth opportunity: 73% of leaders see it as such. The $540 billion in lost value should serve as a clear call to action for reducing waste, improving efficiency, and creating lasting value for both businesses and the planet.”
