By Suzanne Milshaw, Food Export Contractor
In part one of this new two-part blog, we looked at the global challenge of food loss and waste, and some ways that U.S. suppliers are engaged in reducing waste in their operations. In this second part, a few of Food Export’s In-Market Representatives share awareness tactics and activity around reducing food waste in their respective markets.
While the U.S. holds the inauspicious title as the country with the largest volume of food waste in the world, food waste is a universal global challenge. Jonathan Deutsch, Professor and Director at Drexel University’s Food Core Lab, pointed out that the work of the Lab on upcycled products has drawn global interest. He’s observed, however, that countries see the issue of food waste through their own culturally specific viewpoints and that some countries have thus far shown more enthusiasm at tackling the issue than others.
We’ve asked Food Export’s In-Market Representatives from Japan, Europe, and Canada to reflect on the level of food waste awareness and activity in their markets. Here’s what they had to say:
Hisao Fukuda, Food Export In-Market Representative for Japan
What would you say is the level of consumer interest/concern about reducing food loss/food waste in Japan? What would you say are the primary factors that drive this interest?
Food waste is a major concern in Japan. Consumers are well aware of the issue. According to the Japan Ministry of Agriculture (MAFF), in 2020, over 5.2 million metric tons of food were disposed of, which translates to 41 kilograms (90 pounds) per capita. Food waste is now more commonly referred to as “food loss” and is strongly linked to food security. When Japan’s food self-sufficiency is only 37% on a calorie-intake basis, many argue that it does not make sense to produce that much waste when we import so much of our food.
Are you seeing food waste reduction initiatives at the retail or foodservice level in your market? If so, what kinds of actions are you seeing?
In Japan, about 47% of food waste is generated in households and 53% in businesses (30% is in foodservice and 22% in retail). MAFF has initiated a food waste reduction campaign called “NO FOOD LOSS PROJECT” where the 3Rs (reduce, reuse, recycle) efforts are strongly encouraged: specifically, portion control, shelf-life extension, and feed/compost utilization.
Are there domestic food manufacturers who are producing value-added products from food that previously would have gone to the waste stream? Are their efforts a big part of their marketing story? Have they been accepted by consumers?
Food manufacturers are focusing more on the 3Rs, not particularly on developing value-added products from food that would have gone wasted. On the marketing side, they focus more on the sustainability story since reducing food waste can contribute to feeding the rest of the world and help address environmental issues.
Would it be advantageous for US exporters who are actively addressing food waste in their operations to communicate their efforts when they meet buyers from your market? Would it be a valuable marketing message to consumers?
Yes. Any effort, not limited to food waste control, that is tied to sustainability will help.
Jens Hombeck, Food Export In-Market Representative for Europe
What would you say is the level of consumer interest/concern about reducing food loss/food waste in Europe? What would you say are the primary factors that drive this?
Generally, there are two aspects that consumers think of when talking about food waste. First would be the reduction of throwing away leftovers or generally edible food. Second, the reduction of packaging waste. Considering the question, we will focus more on the first aspect for now.
Currently, inflation and prices are the primary concerns for most shoppers, though sustainability, eco-friendliness, and food and packaging waste are also significant concerns. As food costs have risen sharply, consumers are trying to avoid wasting food simply to save money. Aside from that, consumers’ purchases are increasingly driven by social responsibility in regard to the global food crisis, environmental protection measures, and the urge to reduce one’s own CO2 footprint. These motivations are particularly strong among younger consumers between the ages of 14 and 40 and are closely related to climate activism groups such as the “Last Generation” or “Fridays for Future”. This can be observed in all EU countries, especially in the larger economies such as Germany, France, the Benelux region, Spain, Scandinavia, Poland, etc.
So far, there have been several political decisions at the EU and national levels that reflect the urgency of the matter. Such decisions result from a growing public interest in proving the relevance of food waste reduction for the everyday shopper.
In Germany, the Agricultural Minister and the Justice Minister are currently working on a law to legalize “containering” which means that people can collect food from the waste bins of supermarkets. Currently, grocery stores are required to throw out foods when the “best before” date has passed, even when these products are not spoiled. The change in this regulation will help reduce this unnecessary food waste.
Another approach addresses retail as there are requirements in place that fruits and vegetables need to have certain shapes, sizes, visual appearances, etc. In several markets, there are efforts among consumers, trade, and authorities to loosen these restrictions and “save” the ugly produce.
Are you seeing food waste reduction initiatives at the retail or foodservice level in your market? If so, what kinds of actions are you seeing?
As mentioned, the volume of foods that are sorted out by retailers is high across the continent and politicians are slow in finding solutions for the issue, which is why retail chains are stepping up and responding to the growing demand among consumers developing programs to improve their resource handling and food waste control. Dutch retailer Albert Heijn recently started the “AH Overblijvers” initiative, promoting product bundles including goods that are close to the legal “best before” date and would regularly be discarded. German retailer Rewe started its own campaign selling fruits and vegetables that do not correspond with aesthetic requirements. Similar approaches can be seen at other retailers across Europe.
There are also farmers that sell this kind of produce directly from their farms or that allow consumers to walk the field and collect the produce that has been left behind. Based on these practices, there are several private initiatives that have developed a business out of this concept and are now trading with such products only. Some examples include Etepetete and Rübenretter in Germany and Afreshed in Austria.
Are there domestic food manufacturers who are producing value-added products from food that previously would have gone to the waste stream? Are their efforts a big part of their marketing story? Have they been accepted by consumers?
Yes, there are companies that use food waste, production leftovers, etc. to create new products.
Here are some examples from the Netherlands and the UK:
Fruitleather Rotterdam – use discarded fruit to make a vegan leather-like material that can be used to make bags or shoes.
Wholy Greens – produce pasta from imperfect vegetables.
Flawsome! Drinks – make beverages from imperfect fruit.
Toast Ale – brew beer made using surplus bread as a substitute for barley.
Would it be advantageous for US exporters who are actively addressing food waste in their operations to communicate their efforts when they meet buyers from your market? Would it be a valuable marketing message to consumers?
Yes, especially in the organic and natural/health food market, consumers are very interested in these subjects, and they would be considered additional selling points. However, such companies should also have solid sustainability messaging in place and provide information about their carbon footprint. These topics are closely connected, and the customers interested in food recycling and food waste reduction also value these aspects when buying food. There is growing consumer interest and demand in reducing food waste that will impact the food landscape in the years to come.
Kathy Boyce, Food Export In-Market Representative for Canada
What would you say is the level of consumer interest/concern about reducing food loss/food waste in Canada? What would you say are the primary factors that drive this interest?
Canadians are very concerned about sustainability and climate change. We’re experiencing climate change firsthand with more extreme weather patterns across the country, including massive flooding and wildfires in the west, severe windstorms, and global warming. There is concern about how this is going to continue to impact us. The Canadian government and the media discuss climate change on a regular basis. The federal government is taking steps to combat climate change through different means such as a carbon tax, reduction of emissions, and the ban of single-use plastics. There is not as much talk, however, about reducing food loss/food waste other than a push to recycle food waste through the “Green Bin” program that collects and processes food garbage.
Inflation, however, is impacting Canadians significantly at the grocery store. In the past year, we’ve seen food costs increase by 11.4%. It is anticipated that the price of food will increase another 7% in 2023. This has impacted how consumers shop. A typical family has seen an increase of approximately CAD$1,100 (US$825) in their annual food budget. The chart below shows some of the category increases in the past year:
Food inflation has changed how consumers shop by reducing their purchases, wasting less at home, looking for cheaper alternatives, and buying more private label products. Food inflation is also educating Canadians about how our food is being affected by climate change and thus raising concerns about food security. It’s also helping people realize how much food loss Canada is experiencing and is increasing awareness of other aspects of the industry such as: supply management issues, staffing issues, retailer profits, and wastage at the store level.
Are you seeing food waste reduction initiatives at the retail or foodservice level in your market? If so, what kinds of actions are you seeing?
According to the 2022 annual report of Second Harvest, a food rescue charity in Canada, 58% of all food in Canada is lost and wasted annually, amounting to 35.5 million metric tons of food valued at CAD$49 billion (USD$36 billion). Second Harvest redistributes perishable food from food businesses, transportation, and cold storage providers. The report indicates they redistributed 72 million pounds to front-line and non-profit food programs. In response to this, most of Canada’s trade shows work with the organization to collect all the foods and products left at the end of the show. Many foodservice operators also work with them.
Canada’s retailers have been actively trying to reduce food waste. Loblaws, for example, diverts food waste to foodbanks such as Second Harvest as well as sending bakery food waste to businesses that produce animal feed. They are also working with the app Flashfood. Consumers use this app to find food products at grocery stores near them that are coming close to their end date, purchase them at a discounted rate, and then pick them up from the retailer. Loblaws sells these foods for up to 50% off the shelf-price. A report from Flashfood in November 2022 states that the partnership was able to divert 40 million pounds of food from landfill with this program, and at the same time, helped Canadians save more than CAD$110 million (US$82.5 million).
Another leading Canadian retailer, Metro, has a “One More Bite” initiative to donate unsold, yet still edible products, to local food banks.
Are there domestic food manufacturers who are producing value-added products from food that previously would have gone to the waste stream? Are their efforts a big part of their marketing story? Have they been accepted by consumers?
It’s still an early trend here in Canada. One supplier I’m aware of is Happy Planet, which offers upcycled, imperfect vegetables in its plant-based meals as part of larger efforts toward ethically and sustainably sourced ingredients.
Would it be advantageous for US exporters who are actively addressing food waste in their operations to communicate their efforts when they meet buyers from your market? Would it be a valuable marketing message to consumers?
Although the term “upcycle” isn’t universally known to the Canadian consumer yet, consumers respond to statements about sustainability, which is important to Canadians. A study conducted by Dalhousie University in Nova Scotia found that 15.5% of Canadians have already heard of upcycled foods.
U.S. exporters should promote that they are addressing food waste as a key selling feature when they meet buyers from Canada. Retailers are on board and interested in products that can be promoted this way. Canadians, likewise, will respond favorably if the products are priced appropriately. However, exporters should consider that the product messaging may need to include additional explanation relating to the company’s sustainability and food waste initiatives until more Canadians gain awareness of the concept of “upcycling”.