A new report has found that the UK food and drink manufacturing sector could play a major role in addressing food insecurity by cutting waste, recovering surplus, and reinvesting cost savings. The research suggests that coordinated action across the industry could result in more than one billion meals being made available each year to people in need, while also delivering financial benefits for businesses.
The study, titled The Waste Equation, was developed by Newton in partnership with The Felix Project and FareShare. It sets out a data-led framework for reducing waste across manufacturing and increasing the volume of food redistributed through charities. The findings point to measurable opportunities within existing production systems, where relatively small operational changes could release significant volumes of food.
Each year, UK retailers sell 18.5 million tonnes of domestically manufactured food and drink. During production, around 550,000 tonnes of that total is lost, representing approximately 3% of sales. The report identifies clear pathways to reduce this figure and redirect surplus to communities experiencing food insecurity.
According to the analysis, 23% of manufacturing waste, or 128,000 tonnes, could be prevented. This reduction would deliver estimated cost savings of £326 million for manufacturers. A further 16% of surplus, equal to 89,000 tonnes, could be recovered and redistributed through frontline organisations, equating to around 212 million meals.
The report also outlines how reinvesting the £326 million in savings could extend impact further. If those funds were directed towards producing food at the lowest marginal cost, they could generate an additional 657 million meals. Combined with the 148 million meals already redistributed each year by The Felix Project and FareShare, the total potential rises to more than one billion meals annually.
The framework proposed in The Waste Equation follows three steps: reduce, recover, and reinvest. This approach aligns with recommendations from the UK government, WRAP, and The Coronation Food Project. It focuses on operational improvements, surplus redistribution, and reinvestment strategies that connect commercial performance with social outcomes.
To support manufacturers in identifying where losses occur, the report introduces a Manufacturing Waste Map. This tool highlights six stages in production where waste is most likely to arise: preparation, operations, quality control, giveaways, changeovers, and planning. Addressing inefficiencies across these areas is presented as a practical route to lowering waste volumes and improving overall productivity.
Tim Murray, Partner at Newton comments: “This report shows that no single organisation can solve the waste problem on its own. Traditionally, retail has been the biggest supplier of edible surplus to charities, but as supply chains become more efficient, that surplus is declining – even as demand for food support continues to rise.
“By collaborating across the wider supply chain – sharing expertise, logistics, storage, and production capacity – we can unlock far more surplus food for those who need it. Even delivering a small portion of what’s outlined in this report would mean millions more people are gaining access to affordable, nutritious food – while at the same time, also improving business efficiency across the industry. The industry already does a great deal to help people facing food insecurity. The question now is, how do we go even further?”
The findings come at a time when demand for food support continues to increase across the UK. Charities and community organisations have reported rising pressure on services, alongside a tightening supply of surplus food from traditional retail channels. As retail systems become more efficient, less excess stock is available for redistribution, shifting attention towards earlier stages in the supply chain.
Manufacturing is identified in the report as an underutilised source of surplus. By improving coordination between producers, logistics providers, and redistribution organisations, the sector could play a larger role in addressing food insecurity. The report points to shared infrastructure and data as key enablers of this shift.
Charlotte Hill, CEO at The Felix Project and FareShare comments: “Working collaboratively with food manufacturers to reduce waste, recover surplus and reinvest savings to create more meals not only makes commercial sense it is the right thing to do.
Across the UK, The Felix Project and FareShare supply over 8,000 organisations who are supporting people experiencing food insecurity, strengthening communities and improving lives. If we can access more of this potential food, we can make sure more of it is able to have this transformative impact, rather than going to waste.
“That’s why we’re calling on the UK Government to step up, making it easier and more cost-effective for businesses to donate surplus food, instead of it going to lower-value users. This, however, can’t be done by one sector alone – if everyone begins to play their part, we really can make a step change in 2026.”
Policy is identified as another factor in enabling progress. The report calls for measures that reduce the cost and complexity of donating surplus food, encouraging businesses to prioritise redistribution over disposal or lower-value uses. This includes aligning incentives across the supply chain and addressing barriers linked to storage, transport, and compliance.
The Waste Equation presents its findings as a practical route for industry-wide action. It suggests that coordinated efforts between manufacturers, charities, and policymakers could increase the availability of food for redistribution while improving efficiency within production systems.
By focusing on waste reduction and surplus recovery, the report positions the food manufacturing sector as a central contributor to addressing food insecurity. The scale of the opportunity, measured in both meals and cost savings, indicates that existing systems could deliver greater social value with targeted adjustments.
