• Financial cost of food waste seen rising from $526 billion in 2025
• Meat, fresh produce, and ready-to-eat foods drive the largest losses
• Poor inventory management and low supply chain visibility cited as key causes

The global financial cost of food waste is expected to reach $540 billion in 2026, up from $526 billion a year earlier, according to a study published in early January by labeling and packaging solutions provider Avery Dennison.

Titled Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability, the report is based on a survey of nearly 3,500 leaders in the global food retail sector, combined with economic modeling by the UK-based Centre for Economics and Business Research.

Meat is projected to account for nearly one-fifth of global food waste in 2026, representing losses of about $94 billion, and is identified as the biggest challenge by 72% of supply chain managers in the sector. Fresh produce is expected to be the second-largest source of waste, at $88 billion, followed by ready-to-eat meals ($80 billion), dairy products ($79 billion), and bakery goods ($67 billion).

More than half of surveyed leaders, 51%, attribute food waste primarily to poor inventory management and overstocking. In addition, 56% acknowledge limited visibility into losses occurring during transportation. The study notes that 54% of leaders say the cost of food waste has increased over the past three years due to rising food inflation and geopolitical instability, creating a double loss effect. Retailers face higher input costs while also missing opportunities to convert wasted products into potential sales.

According to Avery Dennison, food waste represents an average cost equivalent to about 33% of a company’s total revenue. The firm argues that food waste is not only an environmental and social issue, but also a measurable drag on growth and profitability. It says retailers are well positioned to drive change by improving product-level visibility and strengthening collaboration across supply chains.

The company estimates that broader adoption of these measures could reduce projected food waste-related costs by up to $3.4 trillion by 2030, while improving operational resilience and delivering lasting environmental and social benefits.

The findings echo warnings issued in recent years by international organizations about the urgency of tackling food waste, at a time when about 8% of the world’s population still faces hunger. In a report published in 2024, the Food and Agriculture Organization of the United Nations said about 1.05 billion tons of food were wasted globally in 2022, with nearly 60% occurring at the household level, 28% in food service, and 12% at the retail stage.

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