One of the key focus areas of the IPP Group’s FoodTek Pak conference in December 2025 was food waste and finding efficient ways to save food via efficient processing or smart packaging solutions.
A comprehensive global report by Avery Dennison, published a month later, also puts the spotlight on the burgeoning global food waste bill, the growth opportunity it offers and effective means to deal with it by way of sustainable packaging, smart technologies such as RIFD, data, tackling food waste in manufacturing or active collaboration with retailers and stakeholders across the value chain.
As businesses return from 2025’s holiday trading season, new data reveals that food waste continues to erode margins and is one of the most costly, yet hidden, challenges in the global retail supply chain, says ‘The Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability’ report, published on 6 January.
It warns that the economic cost of food waste across the global supply chain is forecast to reach US$540 billion by 2026, up from US$526 billion last year. In addition, the findings show that, on average, food waste costs are equivalent to 33% of total revenues in the food retail supply chain annually from post-farm up to the point-of-sale. At the same time, tackling food waste across the supply chain, the report says, also offers a US$540 billion opportunity that awaits to be unlocked.
Extensive research involving 3,500 global food retailers and supply chain leaders reveals that, despite growing awareness, 61% of businesses say they still lack full visibility into where food waste occurs across their operations. Limited influence over the most waste-intensive areas of the supply chain is a common challenge, highlighting the urgent need for targeted innovation and cross-supply chain collaboration, Avery Dennison says in the report.
The data highlights how leaders are consistently challenged at various points throughout the supply chain and most specifically across perishables. Asked to identify the three most difficult categories for waste, half pointed to meat (50%), 45% cited produce, and 28% mentioned baked goods.
Over half (51%) of business leaders said inventory management and overstocking contribute significantly to food waste. Tackling this will require a combination of solutions, including item-level inventory visibility, demand forecasting, and real-time shelf-life management.
Transit remains a connecting thread between the different perishable categories, with 56% of companies reporting that they do not have a clear understanding of how much food waste happens when goods are being transported.
If current trends continue, the cumulative cost of food waste from 2025 to 2030 is expected to reach US$3.4 trillion, coinciding with the 2030 deadline for the UN’s Sustainable Development Goal 12.3, which aims to halve global food waste.
Leaders across seven markets surveyed – India, US, UK, France, China, Brazil, and Germany – say food waste costs have risen over the past three years. India recorded the highest at 76% and China the lowest at 37%.
Julie Vargas, VP/GM, enterprise intelligent labels growth, Avery Dennison, says, “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.”
Possible ways out
The report presents packaging as a vital yet often overlooked solution in the fight against global food waste. The report reframes packaging, such as resealable packs, from being a passive container to an active participant in the food system — one that preserves freshness, prevents spoilage, and empowers smarter decision-making across every stage of the value chain.
Smart and connected packaging technologies, including RFID and sensor-enabled labels, allow precise tracking of temperature, handling, and freshness. This data transparency ensures food is discarded only when truly unsafe, addressing one of the largest causes of consumer-level food waste—confusion over shelf life.
At the supply chain level, intelligent packaging provides real-time visibility, enabling companies to manage stock dynamically and avoid losses caused by overproduction or inefficient rotation.
The report stresses the environmental dimension of packaging, emphasizing eco-design and recyclable materials that align with circular economy principles. Packaging, in this view, should not only prevent food waste but also avoid becoming waste itself, the report says.
Through innovations like the atma.io connected product cloud and partnerships with organizations such as Wiliot and Walmart, Avery Dennison demonstrates how packaging data can feed into digital ecosystems that monitor freshness, trace carbon footprints, and support global sustainability goals, including the UN’s Sustainable Development Goal 12.
Ultimately, the report makes clear that packaging is central to both food preservation and data-driven sustainability, bridging the gap between producers, retailers, and consumers to make the entire food system more efficient, transparent, and waste-free.
Case studies across the world
The report notes how, around the world, leading organizations are pioneering solutions to reduce food waste. Avery Dennison, in collaboration with Walmart and Wiliot, is developing smart packaging that uses RFID and IoT to track shelf life and improve inventory visibility.
In India, the Food Safety and Standards Authority of India (FSSAI), via a 2019 Surplus Food Notification, encourages the safe donation and redistribution of edible surplus food. The UNEP–Brazil partnership launched a national plan combining regulation, innovation, and education to drive systemic waste reduction.
In the UK, WRAP’s ‘Food and Drink Pact’ brings together multiple sectors to cut waste across supply chains. Freshinset (Vidre) extends the shelf life of leafy greens through active packaging chemistry, while ReFED in the US provides data-driven tools and policy insights to identify effective food waste reduction strategies.
“Without urgent action, food waste will continue to silently drag down business growth and profitability and create social and environmental inequities. Solutions are increasingly available and retailers are uniquely positioned to steer the supply chain away from this urgent global issue and toward a future where collaboration and innovation can unloc tremendous value, “ concludes Michael Collarossi, vice president, head of enterprise, sustainability, Avery Dennison.
