Why the New EU Food Waste Rules Could be Grocers’ Biggest Advantage

The European Union is taking strong action to cut food waste. A new rule, agreed on in February 2025, sets clear goals for reducing waste in grocery retail, restaurants, and homes. For grocers, this is a big moment. Yes, there’s a legal requirement, but it’s also a chance to modernize operations, reduce costs, and meet growing demand for more sustainable business.

What the New Rule Means for Grocers

By the end of 2030, EU countries must reduce food waste by 30% per person in retail and food service, and by 10% in food processing and manufacturing. These targets will be measured against the average waste levels from 2021 to 2023. So, retailers now have a clear benchmark and a deadline to work toward.

There’s also a new focus on food donation. Grocers will need to make sure that food still safe to eat doesn’t get thrown out but instead is donated. That means setting up simple, reliable ways to get surplus food to people who need it.

Across Europe, the average person wastes 132 kilos of food every year. That adds up to nearly 60 million tonnes. This is a major challenge, but it’s also an opportunity for grocers to lead the way.

How Regulation Drives Smarter Tech

We’ve seen this happen before. When new food safety rules were introduced in the US, they pushed businesses to adopt better technology for tracking and tracing food. That improved not just safety, but also efficiency.

Now, the EU food waste directive can play a similar role. It encourages retailers to use new tools that cut waste, and help stores run better overall. For example:

• AI can predict how much stock to order, so less food is left unsold
• Computer vision can spot problems with products earlier
• Smart pricing tools can apply discounts at the right moment to avoid waste
• Expiration tracking systems can automate alerts, instead of relying on staff to check manually
• Food donation platforms can quickly connect retailers with local charities

How Upshop Helps Turn Compliance into Growth

At Upshop, we work with grocers to make these changes easier and more effective.

• Our forecasting system looks at past sales, current trends, and seasonal patterns to help you order just the right amount of stock. That means fewer losses and fewer empty shelves.
• Our markdown engine figures out when and how much to discount products, so they’re sold before they expire. That protects your margins while cutting waste.
• Our expiration tracking tools let staff know when products are close to their date, so they can act early.
• And our donation solution makes it easy to send food to local food banks or charities. The whole process is digital, traceable, and simple to report, a big help for meeting the EU’s donation requirements.

Why It Pays to Act Now

• Retailers who are already using these kinds of tools are seeing great results:
• 25 to 40% less waste in fresh departments
• 15 to 20% better inventory turnover
• Lower labor costs
• Stronger sustainability performance
• Better customer trust and loyalty

The EU directive gives retailers a reason to move now, but the real motivation is the business upside. The grocers who act early won’t just meet the requirements. They’ll be more efficient, more trusted, and more competitive.

A Better Way to do Business

The future of grocery retail is one where waste reduction is built into everyday operations. It’s not just about following new rules. It’s about using smart tools to run a better, leaner, and more responsible business.

The EU food waste directive is coming soon. The smartest grocers are already preparing, not just to comply, but to get ahead.