Unlocking value from food waste – practical steps for the food and drink sector
Food waste remains a major challenge across the food and drink sector but it also presents opportunities to improve efficiency and recover value from resources that would otherwise be lost. Circular Economy expert Jess Twemlow explores the causes of food waste and the practical steps businesses can take to address it.
Turning food waste ambition into practical action across the food and drink sector
Reducing food waste remains one of the most significant opportunities to improve sustainability across the food system. Globally, around one third of food produced is lost or wasted each year , contributing an estimated 8–10% of global greenhouse gas emissions . In the UK, more than 10 million tonnes of food are wasted each year across the food chain.
For the food and drink sector, addressing this challenge is not only an environmental priority but also a business opportunity to improve resource efficiency, strengthen supply chains and reduce operational costs. While many organisations are now measuring and reporting food waste, the next challenge for the sector is translating this into practical operational change.
Food Waste Action Week provides an opportunity to reflect on the progress made across the sector and where further action can deliver the greatest impact. This includes improving operational efficiency, identifying waste hotspots and exploring circular approaches that unlock additional value from surplus products and by-products.
Understanding where waste occurs
Food waste arises at multiple stages across the value chain, from agricultural production through to manufacturing, distribution and consumption. Common drivers include forecasting challenges, product specification requirements, shelf life constraints and inefficiencies in production or stock management. A significant proportion of waste arises from products that do not meet retail cosmetic specifications or forecast demand.
For many organisations, the first step towards reducing waste is developing a clearer picture of where it occurs and what is driving it. This typically involves establishing reliable measurement systems, analysing data and identifying hotspots where targeted interventions can deliver the greatest impact.
Ricardo has supported organisations across the food supply chain to undertake this type of analysis. For example, Ricardo worked with a major foodservice wholesaler to analyse food waste arising across ambient, chilled and frozen distribution depots. By combining site audits with operational team engagement, the work identified practical opportunities to reduce waste through improved stock management, operational processes and staff awareness.
What projects like this consistently show is that reducing food waste rarely comes down to a single intervention. It typically requires a combination of operational improvements, better data and stronger engagement across teams.
Preventing waste and making better use of surplus materials
Preventing food waste remains the priority but a circular economy perspective also focuses on maximising the value of unavoidable waste and by-products. This is particularly important given that food waste in the UK is estimated to represent around £21.8 billion in lost value each year.
For many food and drink businesses, surplus products, off-spec materials and processing by-products represent not only a waste management challenge but also an opportunity to recover value through new products or secondary markets.
Ricardo has supported several food producers and processors in identifying practical opportunities to capture value from surplus products and production materials. For example, we worked with a soft fruit producer to assess how fruit that did not meet retail cosmetic specifications could be used in alternative product applications. The work examined potential product routes and market opportunities to help the business identify ways to generate value from surplus fruit.
In another project with a vegetable processor, Ricardo analysed waste arising across the production and freezing process. By mapping material losses at different stages of production, the work helped identify where waste was occurring and highlighted opportunities to recover value from processing materials and develop new circular value chains.
Ricardo also worked with a seafood processor to explore ways of recovering additional edible product from material left after processing that would otherwise have limited commercial value. These types of approaches demonstrate how food waste reduction can move beyond waste management and create opportunities for new products or additional revenue from materials that would otherwise be wasted.
Making better use of surplus food
Redistribution also plays an important role in ensuring edible food is not wasted. However, many businesses face practical challenges when establishing redistribution partnerships including food safety considerations, logistics and operational processes.
Ricardo developed practical guidance to help businesses implement redistribution partnerships effectively for Zero Waste Scotland. The guidance sets out key food safety requirements, operational arrangements and partnership structures, helping organisations understand how surplus food can be redistributed safely and responsibly.
Alongside this practical support, Ricardo has also undertaken research reviewing international policy and industry approaches to preventing food waste and maximising the value of unavoidable food waste streams. This work helps identify emerging best practice and opportunities that can be applied across the UK food and drink sector.
Supporting the food sector’s transition
Reducing food waste remains a complex challenge that requires coordinated action across every stage of the food and drink value chain. Meaningful progress depends on organisations having robust, reliable data to understand where losses occur, applying targeted operational improvements to prevent waste arising in the first place and embracing innovative, circular approaches that recover value from unavoidable by‑products and surplus materials.
This transition is already underway across the sector, but accelerating it will be essential for improving sustainability performance, strengthening supply chain resilience and reducing operational costs. Organisations that invest now in better measurement, practical waste‑prevention interventions and new circular value streams will be best positioned to capture efficiencies and unlock greater value from the resources they already manage.
Turning commitment into action
As food waste continues to pose both environmental and economic challenges, the sector has a significant opportunity to shift from ambition to action. By strengthening data, optimising operations and exploring new circular solutions, food and drink organisations can reduce costs, deliver on sustainability commitments and build a more resilient food system.
Get support from Ricardo
Ricardo supports food and drink businesses across the value chain, from undertaking food waste audits and hotspot analysis, to identifying prevention opportunities, designing redistribution processes and developing circular product and by‑product innovations. Our work across the sector consistently shows that businesses combining data‑driven insight with operational change can achieve significant reductions in waste while realising new commercial opportunities.
If your organisation is ready to reduce food waste, improve operational efficiency or explore value recovery opportunities, Ricardo can help.
Our experts provide practical, tailored support to help food and drink businesses move from insight to implementation with confidence.
