Published by: Nora Thomas
Let’s talk about the economy. Groceries, housing, and essential costs are all increasing, while wages struggle to keep up. So many Americans are pinching pennies right now to get by, and we want to make sure you have as many resources as possible to keep your pantries full. So, what if we told you there was a way to stretch your food and your money?
Billions of tons of edible food are sent to landfills every year, releasing harmful greenhouse gases and wasting resources. It also wastes a lot of money. If we reduce our food waste, we can help our planet and our financial situation. Small habit changes can make an immediate impact on your family, while policy implementation can greatly support the local economy.
But let’s put this in perspective.
How Much Are We Wasting?
Globally, ⅓ of all food grown for human consumption is wasted. That is equivalent to $940 billion in annual economic losses. In the United States alone, the value of wasted food in 2024 totaled $325 billion.
If no changes are made to reduce waste, global food waste is on track to double by 2050. That impact would be catastrophic to our planet and economy.
When food is wasted, all of the resources that went into its growth, transportation, and storage are lost. Additionally, food in the landfill is incredibly harmful to our environment because it releases greenhouse gases, including methane, carbon dioxide, and nitrous oxide. To simplify the environmental impact, we will represent all greenhouse gas emissions as CO2e (carbon dioxide equivalent). Food waste also drives inflation, as producers must raise prices to offset the loss of resources.
Here’s how we know reducing waste could create impactful economic change:
Case Study #1 – Massachusetts
In June 2025, the Massachusetts Department of Environmental Protection (MASSDEP) analyzed the impact of its food waste reduction policies. In 2014, MASSDEP banned organic waste of more than 1 ton per week per generator, and in 2022, it amended the policy, changing the threshold to 0.5 tons per week. Entities generating more than the threshold must redirect their waste to food rescues, composting, or anaerobic digestion.
According to their report, this policy change created…
- 1,676 jobs, totalling $143 million in labor income
- $194 million in economic value
- $390 million in industry activity
- 4,150 facilities participating in food waste services
Case Study #2 – Illinois
In a hypothetical example, the National Resource Defense Council (NRDC) analyzed the impact of 3 food waste policy scenarios that would be gradually phased in over 7 years in Illinois:
- Comprehensive – policies would be enforced for all businesses, institutions, and households.
- Geographic Exclusion – policies would apply only to those within 20 miles of a food waste processing plant.
- Small Generator Exclusion – policies would not apply to households and institutions that generate food waste under a certain amount.
The NRDC found that the comprehensive policy would provide the most economic benefits once the plan is fully phased in. After 10 years, this plan has the potential to…
- Create 14,000 jobs, boosting the waste management sector by 33%.
- Generate 3.8 B of economic activity.
- Generate 172 M cumulative tax revenue due to supply chain impacts and economic ripple activity.
It would also create significant environmental benefits by…
- Diverting 2.2 million tons of food waste from the landfill each year.
- Diverting 9 M metric tons of CO2e* over 10 years.
Ironically, one of the barriers to enacting comprehensive policy is cost. Consumers often worry that early-stage costs will be placed on them. However, the NRDC says, “As we have seen in other states, these benefits could come at minimal cost to consumers if states, local governments, and private investors utilize available funding and economic pathways to support the development of new food waste infrastructure and programs.” Furthermore, the economic benefits outweigh the initial cost of implementing food waste reduction infrastructure.
Where Does Federal Policy Play a Role?
Most food waste policies in the U.S. thus far have been state- or citywide mandates for composting. This type of policy works well with local implementation because it can be tailored to the community and its infrastructure. However, other policies would be highly beneficial on a nationwide scale, like the Food Date Labeling Act.
The Food Date Labeling Act (FDLA) is a policy designed to simplify printed dates on food items. There are currently no uniform standards for date labels, resulting in confusion among consumers and unnecessary food waste. Aside from infant formula, date labels reflect quality, not food safety. Simplifying food labels and improving education has the potential to save 4.3 million tons of food waste and $21 billion.
What is the Potential National Benefit of Food Waste Policy?
The case studies above illustrate how waste policies could improve local economies. In comparison, a study conducted by ReFED estimates the potential national benefits. If the U.S. were to invest $14 billion annually over the next 10 years in food waste solutions, it could see…
- 45 million tons of food waste diverted annually
- $73 billion net financial benefit
- 75 million metric tons of CO2e diverted annually
- 4 billion meals rescued annually
- 51,000 jobs created
- 50% food waste reduction by 2030
- This would meet the USDA and EPA food waste goals!
Implementing food waste solutions would bring new jobs and boost economic activity, but policy implementation and impact take time. However, reducing food waste in the home can make an immediate impact.
Economic Benefit for Individuals
Did you know the majority of food waste occurs in the home? Not only can you make a difference by adjusting your habits at home, but you can also save yourself a lot of money.
The EPA estimates that the average American consumer’s food waste costs them $728 each year. For a household of four, that’s nearly $3,000. The amount consumers lose to food waste has nearly doubled since 2010. As grocery prices rise, Americans are already reducing their food waste as they stretch their grocery budgets: In 2026, residential waste dropped by 950,000 tons.
How to Reduce Food Waste
Large-scale change takes commitment to enacting policy and shifting mindsets. To continue expanding solutions, we must: vote for policies that support food waste education and reduction, contact our representatives to express the importance of food waste policy, and spread awareness. Food rescues and food justice organizations are already working hard to reduce waste and accelerate comprehensive policy. Supporting food rescues, like We Don’t Waste, can boost your impact!
There are plenty of ways to reduce your household’s waste. Here are a few tips to get started:
- Complete a food waste audit to understand how much you’re wasting at home. This is a great place to start so that you can implement effective solutions designed specifically for your household!
- Reduce your waste at the source. This means planning before going to the grocery store, only buying what you need, and being conscious about how many perishable items you buy.
- Learn how to store your food to maximize its shelf life.
- Check out our fridge storage guide here.
- Be sure to label and date all leftovers and seal tightly.
- Get creative with your cooking to utilize as much of your food as possible and work with ingredients you already have.
- Learn what food dates mean and determine if your food is safe to eat by using your senses rather than relying on the printed date!
Check out the We Don’t Waste website and find us on social media @wedontwaste for more tips and tricks!
Money matters in food waste. Investing in solutions to reduce your waste can make a big difference for your wallet. Food waste reduction policy is proven to stimulate economic activity and growth. But we know that takes time. Make an immediate impact by adjusting your habits at home and work towards long-term solutions through advocacy and spreading awareness.