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The GCC’s $7 Billion Food Waste Crisis: How Retailers Can Lead The Change

Food waste is a pressing issue in the Gulf Cooperation Council (GCC), where it averages 150 kg per person annually—14% higher than the global average of 132 kg. While not as severe as in countries like the U.S., the GCC’s food waste levels still exceed those of many developed nations, according to the report Tackling Food Waste in the GCC Grocery Market by Oliver Wyman.

Retail food waste accounts for 5-15% of total food waste in the region, but it is 38% higher than the global average, representing a substantial opportunity for improvement. In 2022, the GCC retail sector wasted approximately 1.3 million tons of food, costing between $4 to $7 billion annually—equivalent to providing iftar meals to 70% of the Muslim population during Ramadan. Beyond the financial toll, this waste contributes to environmental damage, from greenhouse gas emissions to the depletion of vital resources like water, energy, and labor, all of which could be better utilized for sustainable development.

The rapid growth of GCC’s grocery and retail markets—valued at $40 billion in the UAE and $62 billion in Saudi Arabia in 2023—has highlighted the scale of the issue. Large hypermarkets and grocery chains, facing low margins, high sales volumes, and intensifying competition, are particularly affected by the waste problem. Promotions such as “buy three, pay for two” encourage the purchase of perishable goods that often end up being wasted. Complex inventory systems and inconsistent stock management practices further exacerbate the problem.

Four Key Drivers Of Food Waste In The GCC

  1. Fragmented Supply Chain Dynamics
    Unlike Western countries, the GCC relies on direct deliveries from suppliers to stores, resulting in increased safety stock and excess inventory, contributing to food waste.
  2. Impact of Supermarket Displays
    GCC supermarkets are typically overstocked to avoid the appearance of empty shelves, which makes products more likely to be discarded when they don’t sell. Additionally, conservative expiry date regulations in countries like Saudi Arabia limit shelf life, leading to waste.
  3. Limited Ownership and Supplier Contracts
    Supplier agreements often require unsold goods to be returned, leaving retailers with surplus stock that can’t be used, which incentivizes excessive sales at the cost of higher consumer prices.
  4. Manual Forecasting and Waste Generation
    Inventory forecasting is often done manually with minimal technological support, leading to inaccurate stock management based on presentation rather than actual demand.

Steps Toward Reducing Food Waste In The GCC

Retailers in the GCC must adopt more sustainable practices. Governments also have a key role to play in creating frameworks that support these efforts, in line with the region’s commitment to the United Nations’ Sustainable Development Goals (SDGs), which aim to halve global food waste by 2030.

Retailers should focus on improving forecasting and replenishment systems to align stock levels with actual demand. Collaborating with suppliers to reduce safety stock and exploring more centralized supply chains for perishable goods could also reduce waste. Furthermore, training staff to handle perishables more efficiently, assess product quality, and place accurate orders is crucial in curbing waste at the retail level.

With supportive regulations, public awareness campaigns, and partnerships, GCC governments can help foster an environment that encourages retailers to adopt sustainable practices and reduce food waste, benefitting both the economy and the environment.

Cyprus: A Global Leader in Longevity and Healthcare Efficiency

In an eye-opening study conducted by renowned universities Brown and Harvard, Cyprus emerges as a global leader in longevity while maintaining low healthcare expenditures. The study, led by Cypriot professor Irini Papanikola, uncovers insightful data on Cyprus’s healthcare efficiency.

Key Findings

Published in the prestigious Journal of the American Medical Association Internal Medicine, the study highlights that Cyprus boasts some of the lowest mortality rates among high-income countries while ensuring affordable healthcare. This research has drawn significant attention, featured in media outlets across America and Europe.

Understanding Avoidable Mortality

The study examines avoidable mortality (deaths preventable through timely healthcare) across U.S. states and 40 high-income countries from 2009 to 2021. Remarkably, Cyprus presents some of the lowest avoidable mortality rates, showcasing the efficiency of its healthcare system even amid global challenges such as the COVID-19 pandemic.

Trends and Challenges

From 2009 to 2019, most high-income countries saw a decrease in avoidable mortality; however, this trend reversed for many, including Cyprus, during the pandemic years. The findings emphasize the critical role of robust public health systems in sustaining positive health outcomes.

The Path Forward

Despite the pandemic, Cyprus’s overall performance remains commendable. To achieve success, experts suggest addressing broader health determinants, focusing on preventive measures like road safety and mental health support through collaborative efforts.

Conclusion

Overall, Cyprus stands out as a beacon of healthcare efficiency, managing to reduce avoidable mortality with relatively low costs. This achievement underscores the country’s adeptness in providing high-quality healthcare, although continued research into population needs is vital for ongoing improvements.

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