The findings, set out in the Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability report, draw on modelling and survey data from 3,500 food retailers and supply chain leaders worldwide.
The report suggested that, despite growing awareness of the issue, food waste continues to erode margins at every stage from post-farm handling through to point-of-sale.
According to the research, food waste costs are equivalent to around 33% of total revenues across the food retail supply chain each year.
This figure reflected losses caused by spoilage, damage, overstocking and inefficiencies that are often poorly tracked or understood by businesses.
The report also highlighted that the total cost of food waste is rising year on year. In 2025, the economic impact was estimated at £390 billion, increasing to a projected £400 billion in 2026.
If current trends continue, the cumulative cost of food waste between 2025 and 2030 is expected to reach £2.5 trillion, coinciding with the UN’s Sustainable Development Goal (SDG) deadline to halve global food waste.
‘Not enough retailers are changing’
A key issue raised by the research is a lack of visibility across supply chains.
While many businesses recognise food waste as a problem, 61% of those surveyed said they do not have full insight into where waste occurs within their operations.
The report suggested that this lack of transparency makes it difficult for companies to intervene effectively, particularly in complex, multi-stage supply chains.
Transit was identified as a major blind spot, with more than half (56%) of respondents said they do not have a clear understanding of how much food waste occurs while goods are being transported.
Julie Vargas, VP/GM, Enterprise Intelligent Labels Growth, Avery Dennison, commented: “The retail ecosystem is changing, but not enough retailers are changing with it. The biggest challenge is what we can’t see. From transit to shelf, blind spots are silently eroding margins.”
Inventory management also emerged as a significant contributor to waste.
Over half (51%) of business leaders said overstocking and poor inventory control play a major role in food waste within their organisations.
When asked to identify the most challenging product categories for waste reduction, respondents pointed primarily to fresh and short-shelf-life goods.
Meat was cited by 50% of participants as one of the most difficult categories to manage, followed by produce at 45% and baked goods at 28%.
Meeting UN 2030 food reduction goals
The report also raised concerns about progress towards international food waste reduction targets.
More than a quarter (27%) of business leaders surveyed said they do not expect their organisations to meet the UN’s 2030 food waste reduction goal.
Avery Dennison’s report concluded that food waste is no longer solely an environmental or social issue but a material business risk for the food retail sector.
Vargas, added: “Food waste has become an accepted cost of doing business, but it doesn’t have to be.
“Innovation exists today to help overcome the complexity of food waste by unlocking new possibilities and transforming a historic operating cost into measurable value across the global retail supply chain.”
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