Avery Dennison is positioning digital identification and intelligent materials as tools to help the Australian and New Zealand food sector reduce waste, improve supply chain visibility and unlock commercial value from smarter packaging systems.
Food waste has long been treated as an unavoidable cost of doing business across the retail and food supply chain. But as margins tighten, sustainability targets intensify and pressure grows around circular economy outcomes, that mindset is beginning to shift.
According to Avery Dennison’s latest report, Making the Invisible Visible, inefficiencies across the global food supply chain are creating significant economic losses, while also undermining sustainability performance and operational efficiency. The company argues that improved visibility, enabled through digital identification technologies and advanced packaging materials, can help transform those inefficiencies into measurable commercial value.
For the Australia and New Zealand market, the issue is particularly relevant. Geographic isolation, long transport distances and fragmented supply chains create additional complexity for food manufacturers, growers, logistics operators and retailers. In this environment, even relatively small visibility gaps can result in spoilage, unnecessary markdowns, excess stockholding and avoidable waste.
The report, developed by Avery Dennison in collaboration with the Centre for Economics and Business Research (Cebr), estimates the global economic output lost to food waste will reach US$540 billion by 2026 and could exceed US$3 trillion by 2030 – the United Nations’ target date for halving food waste.
The report identifies several food categories where the financial and operational impact is particularly acute. Protein products represent a US$94 billion global opportunity, with meat identified by 72 per cent of industry leaders as one of the most challenging categories due to temperature sensitivity and limited shelf life. Produce accounts for an estimated US$88 billion opportunity globally, while bakery products, valued at US$67 billion globally, require highly accurate inventory management to minimise spoilage and markdowns.
At the centre of the problem, Avery Dennison says, is a lack of end-to-end visibility.
The report states that 61 per cent of business leaders lack full transparency across their supply chains, limiting their ability to identify where losses occur and respond proactively. More than half of all food waste takes place during transport and handling stages, where real-time oversight is often weakest.
For Australian and New Zealand operators, those challenges are amplified by the “tyranny of distance”. Whether transporting chilled meat from Queensland processing facilities or moving produce from regional growing areas to urban distribution centres, businesses are often making logistics decisions without access to accurate, real-time information.
The result can be excess “safety stock”, missed opportunities to reroute ageing products, or inventory arriving with reduced shelf life. Avery Dennison argues that these issues are less about food production and more about connectivity, logistics and data visibility.
Connecting physical and digital systems
To address these blind spots, the report advocates a move away from reactive supply chain systems toward more transparent and predictive models, enabled through digital identification technologies and connected packaging systems.
One of the primary technologies highlighted is RFID, or radio frequency identification, which enables products to carry a unique digital identity. Unlike conventional barcodes, RFID does not require direct line of sight, allowing multiple products, pallets or shelves to be scanned simultaneously.
According to Avery Dennison, item-level RFID can improve retail inventory accuracy from an industry average of around 65 per cent to almost 99 per cent. This higher level of accuracy can reduce over-ordering, improve product availability and minimise unnecessary waste.
Within fresh food environments, RFID also supports faster and more targeted markdown processes. Rather than relying on manual checks, store staff can identify products nearing expiry quickly and accurately, allowing items to be discounted before they become unsaleable. The company also positions automation as an operational benefit in a labour-constrained market, reducing time spent on manual stock counts and inventory checks.
Rise of the digital product passport
Another major theme in the report is the emergence of the Digital Product Passport (DPP), particularly as global regulatory frameworks evolve.
While European regulations are leading much of the early development, Avery Dennison says ANZ brands are increasingly recognising the need to align with these standards to remain competitive in export markets.
Through QR codes or NFC-enabled packaging, DPP systems provide cloud-based product information that can be accessed throughout the supply chain. This can include provenance data, ethical sourcing credentials, recycling instructions and product handling information.
In practical terms, the packaging becomes more than a passive container. It becomes a communication and data platform linking growers, manufacturers, logistics providers, retailers and consumers through a shared information system. Avery Dennison describes this as creating “digital trust” across the supply chain.
Packaging and circularity
The report also positions packaging materials as part of the broader sustainability equation, arguing that circularity depends not only on collection infrastructure but also on designing packaging components that work effectively within recycling systems.
One example highlighted is the company’s CleanFlake technology, which enables labels to separate cleanly from PET containers during recycling. This reduces contamination and supports the recovery of higher-quality recycled PET suitable for food-grade applications.
The report also references the AD Circular program, which focuses on recycling release liner waste generated during label application processes to help manufacturers and converters reduce landfill volumes.
Addressing fresh food challenges
Fresh food applications have traditionally posed technical challenges for RFID systems due to high moisture content, dense product stacking and cold-chain conditions, all of which can interfere with signal performance.
To address this, Avery Dennison recently launched the AD IdentiFresh inlay series as part of its Optica Food Solutions portfolio.
The technology uses proprietary antenna designs combined with Impinj M800 series integrated circuits to improve read performance in high-moisture, chilled environments. According to the company, this enables fresh meat and produce categories to be tracked with a level of digital precision previously associated mainly with dry goods.
The report also references several international examples of connected packaging systems in action. Walmart has developed sensor technology for meat departments operating in cold, high-moisture conditions to improve inventory visibility and reduce food loss. Kroger has implemented RFID systems within bakery operations to automate inventory management and improve on-shelf availability, while beverage brands are using NFC and QR-enabled packaging to create direct digital engagement with consumers.
A roadmap for ANZ businesses
For Australian and New Zealand businesses, the report outlines three strategic priorities: reframing waste reduction as a commercial growth strategy, increasing collaboration and data sharing across the supply chain, and integrating digital triggers earlier in the packaging development process.
The report identifies atma.io, Avery Dennison’s connected product cloud platform, as one example of infrastructure capable of supporting this collaboration through a shared, centralised data environment.
Ultimately, Avery Dennison argues that the challenge facing the food industry is not whether enough food is produced, but how effectively products are tracked, managed and moved across increasingly complex supply chains.
By linking physical packaging materials with digital data systems, the company says the ANZ food sector has an opportunity to reduce waste, improve resilience and unlock greater operational efficiency across the value chain.
This article was first published in the Q2 June 2026 print issue of PKN Packaging News, p12.
