New Business Models Globally Addressing The Food Waste Issues

Did you know that approximately one-third of global food production is wasted annually, which not only causes massive economic losses but also has severe environmental and social impacts??

This article will examine the alarming reality of food waste and explore the innovative green solutions gaining global momentum. Can emerging technologies and new business models transform food waste into a valuable resource? What opportunities exist for Vietnamese businesses to engage in this transformative journey? Let’s explore this with BambuUP in the article below!

1. The Situation of Food Waste and Its Impact on the Environment

Food waste has become a serious global issue. According to the Food and Agriculture Organization ( 联合国粮农组织 ), 13% of global food production was lost after harvest and before it reached retailers in 2022, resulting in a loss of up to USD 400 billion. Additionally, 19% of total food - equivalent to 1.05 billion tons - continues to be wasted at retail, food services, and households. In total, nearly one-third of the world's food is wasted, a volume sufficient to feed 1.26 billion hungry people each year [1].

In Vietnam, the situation is equally alarming. A 2021 report by the UN Environment Programme (UNEP) shows that each Vietnamese person wastes an average of 67-85 kg of food annually [2], leading to a total of more than 8 million tons of food waste, costing the nation approximately USD 3.9 billion—about 2% of the GDP [3]. This creates increasing pressure on the country’s natural resources and environment.

Food waste not only depletes resources but also has a significant environmental impact. The production, transportation, storage, and consumption of food consume vast amounts of water, land, and energy.

FAO estimates that the food discarded every year uses about 250 km3 of water - three times the volume of Lake Geneva - while the land used to produce food that is wasted annually amounts to nearly 1.4 billion hectares, accounting for about 30% of the world’s agricultural land [4]. The use of chemicals and fertilizers in food production also pollutes water and land, accelerating soil degradation and biodiversity loss.

Food waste, when decomposed, releases large amounts of methane - a greenhouse gas 28 times more potent than CO2. If food waste were a country, it would be the third-largest emitter of greenhouse gases, behind China and the U.S [4].

Furthermore, food waste has serious economic and social consequences. According to the US Environmental Protection Agency (EPA) , food waste causes an economic loss of over USD 940 billion annually, while one in nine people globally is undernourished [5].?

In developing countries like Vietnam, food waste means higher production costs and wasted resources. This wasted food could feed millions, helping reduce poverty and hunger. Additionally, food waste raises prices, making it harder for low-income families and affecting food security, as depleting resources will reduce future supply capabilities.

2. Green Solutions to Reduce Food Waste

In light of this alarming situation, countries worldwide, including Vietnam, are implementing various green solutions to address food waste, from post-harvest stages to retail, and promoting consumer awareness through advanced technologies, sustainable business strategies, and cross-sector collaboration.

AI, IoT, and Big Data for Effective Food Inventory Management

High-tech solutions such as Artificial Intelligence (AI), the Internet of Things (IoT), and Blockchain play crucial roles in managing and reducing food waste across the supply chain.?

AI can improve accuracy in ordering and inventory management, reducing waste and increasing sales. Rather than relying on human estimates, AI analyzes large volumes of historical and real-time data to adjust orders according to demand, keeping products fresh on shelves. This technology is increasingly perfecting its ability to predict customer behavior, which is especially useful for seasonal food items such as pumpkins in the fall, baking ingredients during holidays, or treats during festive seasons [6].

Afresh , an AI-powered application designed to assist retail chains in monitoring product demand, has reportedly achieved a reduction in food waste in storage by up to 50%. This has been accomplished through optimizing inventory management processes and minimizing unsold products [7].

In addition, IoT plays a crucial role in monitoring and preserving food. IoT sensors installed in warehouses and on transport vehicles help track temperature, humidity, and CO? levels, ensuring food is stored in optimal conditions. The system also measures the exact amount of food waste using weight and gas sensors in trash bins or storage areas, detecting gases such as CO?, CH?, and NH? - signs of food decomposition. When combined with big data analytics, the system can forecast waste trends, enabling timely decisions and improving supply chain efficiency [8].

Lineage , a leading cold food transportation company in the United States, has implemented IoT and temperature sensors combined with machine learning systems to maintain optimal warehouse temperatures. This approach reduces the risk of spoilage and food waste during storage and transportation [7].

Additionally, Blockchain is being used to enhance transparency and traceability in food supply chains. By recording details about the origin, farming conditions, and transportation of each batch, stakeholders can quickly identify the source of quality issues, remove or address non-compliant batches, and adjust processes or improve farming and transportation conditions as soon as problems are identified.

One notable example is the U.S.-based company Ripe.io in America, which provides blockchain-based food traceability solutions. This company creates a digital bridge between farmers, distributors, producers, and consumers, helping monitor the journey of food from farm to table [7].

Food Recycling Technologies Creating Valuable Products

While AI, IoT, and Blockchain technologies focus on pre-consumption stages to enhance transparency and efficiency in inventory management, recycling technologies play a crucial role in the post-consumption phase.

The adoption of devices such as food waste processors that convert waste into organic fertilizer is becoming increasingly common in restaurants and households, not only in international markets but also in Vietnam. This contributes to reducing the amount of wasted food sent to landfills.

For example, Food Cycler - a company owned by Food Cycle Science in Canada - has helped over 250,000 households convert food scraps into compost in just a few hours. Through a grinding and heating process, the machine can reduce food waste by up to 90% and turn it into nutrient-rich fertilizer without emitting any methane gas [8].

Within Vietnam, food waste processors that convert organic waste into organic fertilizer are also being researched and developed to meet the growing demand for reducing food waste and protecting the environment.

A notable example is the organic waste-to-biofertilizer machine invented by mechanical engineer Nguy?n Tu?n Anh. This machine can process 30 kilograms of organic waste per hour, not only reducing the amount of waste released into the environment but also producing high-quality natural fertilizer for crops [9].

The machine is currently undergoing efficiency trials at Biên Hòa Parish and An Bình Parish, receiving positive feedback from users for promoting greener, healthier plant growth. Once refined and mass-produced, this “made-in-Vietnam” machine could be applied in a variety of settings, including households, restaurants, tourist sites, businesses, and schools, making food waste recycling a practical and accessible solution throughout Vietnam.

Many companies are also converting discarded food into valuable products.?

For example, Toast Brewing [10] in the UK uses surplus bread from bakeries to produce beer, while Barnana, PBC in the US focuses on reducing food waste by repurposing bananas that are “aesthetically imperfect,” unfit for sale, or overly ripe, potentially spoiling before reaching consumers after transport from Latin American farms, into nutritious banana snack products [11].

Companies like these not only contribute to the circular economy but also support sustainable agriculture, providing consumers with unique, environmentally responsible food products.

“Zero Waste” Restaurants and Supermarkets

In addition to advanced technologies, innovative business models and strategies in the F&B industry are emerging to minimize food waste. One prominent approach is the “zero waste” model in restaurants and supermarkets, aimed at reducing food waste to the greatest extent possible.

Restaurant Nolla in Finland, the first in the Nordic region to meet 100% zero waste standards, has pioneered this model comprehensively, from a strict no single-use plastic policy to staff uniforms made from recycled materials.?

For items that cannot be reused, such as eggshells, vegetable peels, or small bones, Nolla utilizes an on-site composting machine to convert waste into fertilizer within 24 hours, which is then given to farmers, creating a sustainable, circular loop [12].

To make full use of ingredients, chefs at Nolla often apply creative techniques, such as drying, fermenting, or curing components to craft unique sauces, seasonings, or mixtures. Furthermore, all ingredients are sourced from local farmers and suppliers to reduce carbon emissions from long-distance transport. The menu is entirely seasonal, developed in close collaboration between the head chef and suppliers, ensuring fresh, readily available ingredients. This allows Nolla to adjust dishes in real time, minimizing surplus and avoiding ingredients that are unavailable or less popular, thereby effectively reducing food waste [12].

In Vietnam, the Pizza 4P's 's Hikari Bình D??ng restaurant is the first to adopt this “zero waste” model.?

The restaurant follows an eco-friendly food production process by reusing and maximizing the use of ingredients. Vegetables and fruits served to customers are organically grown in the restaurant’s own garden, and leftover food is composted to help nurture and expand this garden.

Pizza 4P's further demonstrates creativity by recycling cheese whey into unique beverages and incorporating recycled materials in the restaurant’s design and furnishings. For instance, recycled plastic is used for chairs and cabinets, beer bottle caps create floor patterns, recycled steel serves as handrails, and old boat wood is repurposed for doors and tables. Even concrete blocks previously used for foundation testing have been repurposed as pathways in the garden, creating an eco-friendly space that reflects a green, sustainable lifestyle [13].

In addition to restaurants, many supermarket chains such as AEON Vietnam , Bách Hóa Xanh, and WinMart+ (of WinCommerce - Masan Group ) are actively working to minimize the amount of expired food that needs to be discarded. They achieve this by offering discounts of 20-50% at the end of the day on ready-to-eat items like rice, sushi, fried chicken, etc. as well as fresh foods such as pork, shrimp, fish, and vegetables [14]. This smart and cost-effective strategy has been enthusiastically embraced by students and workers, making it increasingly popular.

E-commerce and Food-Sharing Applications

In addition to restaurant and supermarket models, e-commerce and food-sharing applications are also creating innovative solutions to reduce food waste.

Platforms like Too Good To Go and Olio ? Share More, Waste Less serve as a bridge between consumers and restaurants or supermarkets with surplus food, allowing consumers to purchase these items at discounted prices [15]. This approach not only reduces food waste but also provides economic benefits for both parties.

In Vietnam, platforms like Food Bank Vietnam Network (FBVN) and similar applications are facilitating the sharing of surplus food with charitable organizations, helping to reduce food waste while positively contributing to the community. One such organization is VietHarvest , which collects and donates surplus food to disadvantaged communities across the country. In 2023, VietHarvest provided nearly 40,000 meals to these communities and rescued over 18,000 kilograms of food from being wasted [16].

Collaboration Between Businesses and Farmers

Additionally, the collaboration between businesses and farmers is paving the way for new solutions to utilize surplus food. Many companies have started purchasing agricultural products that do not meet cosmetic standards but still ensure quality, using them as ingredients for food processing.

An example of this is Misfits Market in the United States, which operates a business model focused on purchasing imperfect fruits and vegetables from farmers and selling them to consumers at lower prices. This company addresses issues such as unappealing color that doesn't affect taste, surplus stock, uneven sizes due to unfavorable weather, as well as products nearing expiration and by-products from the production process [16].

Misfits Market purchases imperfect fruits and vegetables from farmers (Source: Internet)

In Vietnam, businesses in the food industry can also collaborate with farmers to utilize surplus food supplies as raw materials for animal feed or other processed products, thereby reducing waste and creating additional economic value.

3. The Path to Sustainability: Creating Value from Leftover Food

As food waste continues to be a growing issue, green solutions that create value from discarded food are emerging as a promising field, opening up numerous business and investment opportunities for global companies.?

The trend of developing models that recycle surplus food into valuable products such as fertilizers, animal feed, snacks, beer, etc., has helped many businesses not only save costs but also create new value from available resources. Additionally, the application of new technologies is a key factor in reducing food waste. Investments in technologies such as AI, IoT, and Blockchain will help businesses optimize supply chain management, reducing waste from harvest to the point when products reach consumers. These technologies allow for tracking the amount of food wasted and identifying effective solutions for handling it, thereby improving efficiency and reducing costs.

Furthermore, community education and raising awareness are essential in the effort to reduce food waste. Teaching consumers how to properly store food, maximize the use of ingredients in meals, and encouraging waste sorting at home are activities that can significantly reduce food waste.

Looking to the future, minimizing food waste not only plays a crucial role in environmental protection but also promotes sustainable development across various aspects. Reducing food waste helps conserve water, energy, and land—valuable resources that humanity increasingly needs. This also aids in reducing greenhouse gas emissions, thereby mitigating the effects of climate change. Moreover, by building and maintaining a sustainable food system, countries can ensure food security for future generations, providing long-term economic and social benefits.

Ph??ng Lê.

If your company is looking for the right resource connections to effectively implement food waste reduction solutions, get in touch with BambuUP!

We have partnered with many leading companies such as Heineken Vietnam, FASLINK, DKSH Smollan,... and others in launching open innovation challenges. BambuUP is proud to be a trusted strategic partner, always supporting businesses in innovation activities and a strong green transition process.

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