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$540 billion global food waste bill exposed for 2026
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Saturday, 10 January, 2026, 08 : 00 AM [IST]
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Ohio, USA
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Global food waste across the retail and supply chain is projected to cost businesses a staggering $540 billion in 2026, emerging as one of the most expensive yet largely invisible challenges facing the food industry, according to a new report released by Avery Dennison. The findings highlight how food waste continues to erode margins, particularly in high-value perishable categories, while limited visibility across supply chains compounds the problem.
The report, Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability, is based on extensive research involving 3,500 global food retailers and supply chain leaders. It estimates that food waste costs are equivalent to 33% of total revenues on average across the post-farm food retail supply chain, from processing through to point of sale. The economic impact has risen from $526 billion in 2025 and is expected to keep growing if systemic issues remain unaddressed.
A key concern identified is the lack of end-to-end visibility, with 61% of retail and supply chain leaders stating they do not have a full view of where food waste occurs. Transit remains a major blind spot, as 56% of respondents admitted they do not understand how much waste happens while food is being transported, despite its critical role in the perishables supply chain.
Among product categories, meat has emerged as the most challenging, accounting for nearly a fifth of the total economic cost of food waste. Meat waste alone is projected to cost $94 billion in 2026, followed closely by fresh produce at $88 billion. The 2025 holiday season further exposed vulnerabilities, with 67% of retail leaders saying meat waste would hit margins harder than before, while 69% said managing waste during peak trading periods has become a growing operational concern.
The report also warns that if current trends continue, the cumulative cost of food waste from 2025 to 2030 could reach $3.4 trillion, coinciding with the UN’s Sustainable Development Goal 12.3, which aims to halve global food waste by 2030. Alarmingly, 27% of business leaders believe they will miss this target.
Avery Dennison executives stressed that food waste should no longer be seen only as a sustainability issue, but as a business-critical opportunity. With 73% of leaders viewing waste reduction as a growth driver, the report calls for greater adoption of item-level visibility, real-time shelf-life management and cross-supply chain collaboration to convert losses into measurable value.
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