The cost of food waste along the global supply chain can reach US$540 billion in 2026according to projections by Avery Dennison. The value represents growth of 2.7% compared to the US$526 billion recorded in the previous year.
The study reveals that food waste continues to erode margins and is consolidating itself as one of the most expensive challenges in retail.
Furthermore, the results of the study show that, in Brazil, on average, the costs associated with food waste are equivalent to 32% of revenue annual total in the food retail supply chain, from harvest to point of sale.
The survey polled 3,500 food retailers and supply chain leaders around the world and reveals that despite increased awareness, 61% of companies say still not visible understanding where waste occurs in your operations.
For Avery Dennison, the limited ability to influence the points in the chain with the highest levels of loss is a recurring challenge, which reinforces the urgent need for targeted innovation and collaboration between the different links in the chain.
The study also finds that logistics and distribution continue to be the main critical points, as 56% of respondents say they do not understand where waste occurs during food transport.
Food stock management is mostly carried out through manual counts by 67% of respondents. The process is considered labor-intensive and susceptible to inaccuracies, according to the study.
Lack of visibility exacerbates the problem, 61% of retail and supply chain leaders claim they do not have a complete view of where waste occurs along the chain. While more than half of business leaders indicated that inventory management and excess inventory contribute significantly to waste within their operations.
When asked about the most difficult categories to manage in terms of waste, 50% named meat, 45% fruit and vegetables and 28% said bakery products are the most complex to contain waste.
the most challenging category according to participants, is expected to generate a cost of US$94 billion in waste by 2026, almost a fifth of the total economic impact of food waste.
If current trends continue, the cumulative cost of food waste between 2025 and 2030 could reach US$3.4 trillion, a deadline that conflicts with the United Nations (UN) Sustainable Development Goal 12.3, which seeks to halve global food waste by 2030.
Despite this objective, the report reveals that 27% of leaders believe they will not be able to achieve the goal within the established deadline.
For Flavio Marqués, director of marketing, sales and communications for Latin America at Avery Dennison, food waste should no longer be treated as an inevitable cost of retail. “The combination of lack of visibility throughout the supply chain and low adoption of innovations has contributed to significant losses that directly impact companies’ margins,” he highlighted.
A high-cost challenge intensified by market fluctuations
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 demand for meat, while 73% point to an increase in demand for smaller portions or alternatives to animal protein.
A survey by the “Pact Against Hunger” estimates that Brazil wastes around 55.4 million tons of food per year, which represents approximately 30% of national production. Of these, 10.8 million tons are lost specifically in the post-harvest stagesstorage and transportation, critical moments in which the type of packaging adopted has a direct impact on the durability and integrity of the products.
Market innovations
The fruit and vegetable segment faces the challenge of waste, especially post-harvest. According to the Brazilian Agricultural Research Corporation (Embrapa), up to 30% of production is lost due to logistical failures, inadequate transport and the use of inappropriate packaging.
Smurfit Westrock, , works to avoid wasting food such as fruits and vegetables.
The company took advantage of the conventional container space, which with the original box, held 20 pallets, 1,200 boxes and 19.2 tons of fruit per trip.
The company redesigned the dimensions of the box and pallet, which allowed it to ship 21 pallets per container, 1,260 boxes and 20.16 tons of watermelon, a 5% increase in fruit per load.
Over the course of a year, this capacity gain translated into around an extra ton per shipment, a reduction of 10 containers handled, savings of approximately R$350,000 in freight and the prevention of the emission of 3 thousand tons of CO₂.
Manuel Alcalá, CEO of Smurfit Westrock in Brazil, states that the company’s investments seek to meet the demands of agribusiness, essential factors for a more competitive horticultural sector. “Cardboard packaging is strategic for the agri-food chain, as it is what guarantees the quality in which products reach their destination. They not only protect, but also optimize costs, reduce waste and increase transport efficiency”, he said.
