Food waste is an issue we are all familiar with and guilty of, whether it’s the food we throw away weekly in our households or the food we leave behind when we dine out.
On average, each of us produces 74 kg of food waste per year. However, the issue is greater than our individual guilt. According to the UN, across our planet, approximately 13 percent of food produced is lost between harvest and retail, while it is estimated that 17 percent of total food production is wasted in households, food service and retail.
The consequences extend further, as the disposal of food loss and waste in landfills contributes to greenhouse gas emissions, exacerbating climate change. Food waste alone contributes 8-10 percent of total man-made greenhouse gas emissions, ranking just behind China and the USA’s greenhouse emissions.[1] Moreover, food loss and waste have direct implications for food security and availability, while simultaneously driving up the overall cost of food production.
Agrifood systems currently account for one-third of total greenhouse gas emissions, according to the FAO (2021). The looming challenge of feeding a global population projected to reach 9.6 billion by 2050 is staggering, requiring resources equivalent to almost three Earth-sized planets (UN, Goal 12 Facts and Figures).
Amidst these challenges, there is hope. Promising technological advancements, some more established such as food upcycling, IoT, sensors and automation – and some emerging such as AI, biotechnology, fermentation, and innovative nutrient preservation technologies. They all offer potential solutions for efficient food waste management. These advancements represent a crucial step toward a more sustainable and efficient approach to food production and waste reduction.
Food upcycling market is segmented into food and beverages processing, personal care products, household products and pet food, and the market size value was USD 53.7 billion in 2021, and is estimated to reach USD 97 billion by 2031.[2] These foods are value added products that make ingredients that would otherwise end up in a land fill and align well with the growing demand for functional and clean label products. Companies in this sector are producing food ingredients ranging from natural antioxidants and colourings made from grape mark sees and wine lees, to prebiotic dietary fibre made from wheat straw, corn stover and pea husks.
The precession agriculture market is estimated at USD 10.5 billion in 2023 and is expected to grow at a CAGR of 12.8% to 2030.[3] The Internet of Things (IoT), along with advanced analytic tools such as sensor, satellite and drone imagery, smart irrigation, dendrometers, robotics etc is driving the growth of the sector. These tools enable farmers to utilize methods that ensure that crops and soils receive adequate nurturing without input waste, as well as optimise harvesting time ensuring maximum productivity with minimal spoilage.
AI is being leveraged across various stages of the food supply chain to reduce food waste by improving efficiency, forecasting and decision-making. According to a McKinsey Sustainability [4] report, AI can unlock a USD 127 billion opportunity by reducing food waste. There are several ways in which AI is contributing to this effort: supply chain optimization, predictive analytics, quality control, shelf-life prediction, smart logistics, dynamic pricing, food donation matching and smart refrigeration. By integrating AI technologies into these aspects of the food supply chain, businesses and organizations can make more informed decisions, minimize inefficiencies and ultimately reduce food waste.
Fermented ingredients function as food additives, initiating fermentation in both food and non-food products to achieve specific chemical properties in terms of taste, aroma, texture, and appearance. The total fermented ingredients market is estimated at USD 35.08 billion in 2023 and is expected to grow to USD 38.11 billion in 2024. [5]
The Fermented ingredients production sector has grown significantly in recent year due to an improvement in technology which has increased efficiency and lowered cost, greater number of players on the market, and greater consumer demand for alternative proteins and clean label ingredients. Fermentation has also become a growing sector producing ingredient to extend shelf life, fortify products and develop enzymes that enable better taste, texture and functionality of both traditional and plant-based products. [6]
Various compounds find application as additives, colorants, or ingredients in the food industry. Pectin from citrus and passion fruit peels, apples, and peach pomace acts as a versatile gelling agent, thickener and stabilizer. Carotenoids, like lycopene and β-carotene, extracted from tomato skins, carrot byproducts, mango, and orange peel, contribute to the industry. Banana peels provide recoverable dietary fibre for baking, while orange juice fibre byproducts are potential fat replacements in ice cream. Anthocyanins from berry byproducts, grape pomace, and exotic fruits play a crucial role as well. The extraction of bioactive compounds like polyphenols, flavonoids, and minerals from fruit and vegetable industry byproducts significantly contributes to the functional food and nutraceutical sectors. [7]
While the exact size of the biotechnology market directed at reducing food waste is hard to estimate, it is significantly contributing to resolving the problem. By harnessing the power of biotechnology, scientists and researchers are making significant strides in creating more sustainable and efficient systems throughout the food supply chain. Areas where biotechnology is being utilized for this purpose include: improved crop resistance, extended shelf life (modification of plants to resist spoilage and decay), biocontrol agents (beneficial microbes and fungi), enzyme technology (extracting value components during food processing), precision breeding and waste valorisation (converting waste into biofuels, bio-based chemicals and animal feed).
In conclusion, the pervasive issue of food waste demands our collective attention and action. Beyond individual guilt, it poses a global challenge, contributing to greenhouse gas emissions and jeopardizing food security. However, amidst these challenges, there is optimism fuelled by technological advancements. At the same time, this landscape of innovative solutions presents a compelling investment opportunity, where profitability can be married with climate action thereby forging a blue vision for the future.
[1] World Recourses Institute, 23 April 2023.
[2] Allied Market Research, “Upcycled food products Market”, March 2023
[3] Grand View Research
[4] 27 March 2019
[5] Business Research Company, January 2024.
[6] Good Food Institute
[7] National Institute of Health, UK, 2021
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