Food waste is a global crisis with staggering proportions. According to the latest UN Food Waste Index Report, a shocking 1.05 billion tonnes of food were wasted in 2022, accounting for nearly one-fifth of all food available to consumers. In the United States, the problem is equally alarming, with 38% of the food supply—88.7 million tons—going unsold or uneaten in 2022. This waste carries a hefty price tag, costing the U.S. economy approximately $473 billion in the same year.
Retailers and supermarket chains play a significant role in this wasteful cycle. The retail sector alone was responsible for 131 million tonnes of food waste globally in 2022.
This immense amount of food waste has significant environmental, economic, and social impacts. However, with the rise of AI and IoT technologies, numerous innovations are emerging that can help retailers in the food industry contribute to the food waste solution, rather than the food waste problem.
How to tackle food waste in the big picture: measure, then act
The WRI Report on Reducing Food Loss and Waste puts an emphasis on measuring food waste. Data is essential when developing food waste management strategies, integrating solutions, and assessing the results of actions put in place.
As more and more European countries begin to measure food waste, with a declared target of reducing food waste by half between 2016 and 2030, retailers need to have the technology to support accurate evaluation of inventory and keep up with expected level of awareness.
Thanks to both global and local initiatives, grocery stores can measure food waste and take meaningful action to fight it. By facilitating food waste management at the micro level, retailers can begin to help solve the bigger issue.
Challenges retailers face when it comes to food waste
Grocery stores face several challenges when trying to reduce food waste.
Inefficient Supply Chain: The supply chain for grocery stores is often highly inefficient, leading to overstocking and waste. Common challenges include inaccurate demand forecasting, inadequate inventory management, and poor communication between suppliers and retailers.
Cosmetic Standards: Consumers often have high cosmetic standards for fresh produce, leading to the rejection of fruits and vegetables that are still edible but do not meet these standards.
Short Shelf Life: Perishable foods have a limited shelf life, making it challenging for grocery stores to sell them before they expire. This can lead to waste if not managed effectively.
Customer Awareness: Customers may not be aware of the impact of food waste or how to reduce it, unless they are educated via in-store promotions, recipe cards, and other initiatives that can encourage them to make informed purchasing decisions.
Limited Use of Technology: Grocery stores may not be utilizing technology such as digital smart labels, AI-powered dynamic pricing systems, and inventory management software to optimize their operations and reduce waste.
5 food waste management technologies
AI and IoT are being leveraged to help businesses participate in the creation of a Circular Food Economy, which the European Commission defines as “an economy where the value of products, materials, and resources is maintained for as long as possible, and the generation of waste is minimized”.
Following the model of “measure” then “act”, large retailers are beginning to use AI and IoT both in-store and behind the scenes to improve operational efficiency, collect and use data, and find new, innovative solutions to the problem of food waste in retail.
For example, AI-enhanced food storage solutions can actively monitor and control storage environments by adjusting factors like temperature and humidity to extend the shelf life of food. By predicting and automatically adjusting storage conditions for various food types, these AI systems can significantly reduce spoilage rates. This technology has the potential to be especially transformative in warehouses and refrigerated transport, improving food preservation and efficiency.
AI can also significantly enhance the efficiency of the food supply chain by analyzing large data sets related to food production, distribution, and consumption. This capability allows for the identification of inefficiencies and prediction of potential waste areas. Specifically, AI algorithms can accurately forecast food demand so that retailers can optimize their inventory levels and minimize overstock, thereby reducing waste.
Food waste management technologies for retail
Let’s take a look at four technologies that have been developed specifically to reduce foods waste in grocery stores:
1. OneThird
OneThird, a company named for the statistic that one-third of the world’s food is wasted, provides cloud-based software and handheld scanners to retailers and distributors, enabling them to predict the shelf life of produce with AI.
They also offer quality assessments to aid suppliers in making decisions that minimize waste. The company boasts high accuracy in its shelf-life predictions through data analysis and other methods, ensuring timely delivery from farm to fork.
2. JRTech
JRTech Solutions is the #1 supplier of Pricer Electronic Shelf Labels (ESLs) in North America, and has equipped major grocery chains such as Metro, Super C, Whole Foods, Avril Supermarché and more. They are a provider of next generation ESLs specifically designed to support even the most demanding activities in the new era of store floor automation and digitalization, SmartTAG Power & Power+.
ESLs can significantly contribute to reducing food waste in grocery stores by allowing retailers to:
- Promote surplus inventory: ESLs can be used to promote surplus or near-expiry products through targeted discounts, encouraging customers to buy these items and reducing the likelihood of waste.
- Improve inventory management: ESLs can help retailers track inventory levels more accurately, enabling them to better manage stock and reduce overstocking of perishable items that may go to waste.
- Implement dynamic pricing: ESLs can be integrated with AI-powered dynamic pricing systems, which adjust prices based on real-time data and market conditions. This approach offers consumers competitive prices while supermarkets maximize their profits, reduce waste and maintain their commitment to sustainability.
- Make real-time updates: ESLs allow for instant price changes and updates on product information, so retailers can dynamically adjust prices for items nearing their sell-by dates. This encourages customers to purchase products before they expire, reducing the likelihood of waste.
3. Apeel
Technologists are also addressing the challenge of extending the shelf life of perishable fruits and vegetables. Apeel Sciences has developed a product that coats fresh produce with a protective layer made from oils derived from the byproducts of other processed fruits and vegetables. While it has yet to be approved by health food advocates, this coating helps produce last longer, providing consumers more time to purchase and consume it, thereby reducing waste.
Food waste management technologies for food recovery
It doesn’t stop here. Food recovery technologies are also being developed at record speed to enhance the efficiency of food recovery and redistribution by real-time matching of surplus food with areas of need.
For instance, an AI system can process data from food banks, shelters, and excess food from restaurants and grocery stores to effectively direct donations to where they are most needed, so that surplus food is used to feed people instead of being wasted in landfills.
4. Spoiler Alert
Several tech startups are aiding food companies in managing data on unsold products. Spoiler Alert, founded by MIT graduates, utilizes analysis of unsold inventory from manufacturers and wholesale distributors to identify potential waste and recommend prevention strategies. Already adopted by major companies like Sysco and meal kit provider HelloFresh, Spoiler Alert has helped reduce food waste by 50% and double donations within a single year.
5. Flashfood
Flashfood, a company based in Toronto has created a platform that helps users find food items that are close to their best-before dates, purchase them at reduced prices, and pick them up in-store. This system not only allows consumers to save money but also helps grocery stores minimize losses and reduce their carbon footprint, creating a mutual benefit. The technology is particularly effective for larger chains, which tend to produce more waste.
JRTech is a trusted provider of Pricer Electronic Shelf Labels
Food waste is a major challenge faced by retailers and economies worldwide. By implementing the right technologies, grocery stores can make significant progress in reducing food waste, protecting their profit margins, and promoting a more sustainable food system.
JRTech has a proven track record in providing high-performing digital tools to retailers in the food industry. Digital technologies, including inventory management software and Electronic Shelf Labels, play a key role in effectively solving the food waste problem.
Contact us today to implement our technology and help your business embrace the future of sustainable, low-waste food sales.
