Japan Research Institute × Food loss and waste

In the experiment for the first segment “from producers to retailers,” information that producers have but that has hitherto been little utilized, such as information on the conditions of produce at the time of harvesting, is communicated to consumers while tracking produce on distribution routes from producers to a supermarket in Tokyo. The objective is to find out whether providing such information to consumers broadens their selection criteria and is effective in reducing food waste. It is also an attempt to answer a question: Does communicating new value of produce lead to change in consumer behavior.

In the experiment for the second segment “retailers,” dynamic pricing was applied. Using electronic shelf labels at a supermarket, prices changed depending on best-by dates and use-by dates. Greater variation in prices for the same product gives consumers new options in their purchase decisions and is also a way of selling off all the stock. The objective is to verify the impact on enhancement of a store’s operational efficiency as well as on food waste reduction.

In the experiment for the third segment “from retailers to consumers,” based on data on purchasing and data on consumption and disposal, information helpful to consumers in their food purchasing, cooking, and storage is provided to them from the viewpoint of “health.” To “visualize” food stocks, this experiment is designed to encourage consumers to register consumption and disposal data efficiently, economically, and in a fun way. It examines whether consumers can unconsciously help reduce food waste by taking advantage of services they receive.

The results of the experiments in fiscal 2020 convinced the SFC Concept Study Group that providing information on freshness can change consumers’ purchasing behavior. A dynamic pricing experiment and an experiment in which consumers managed food stocks at home also showed positive impacts on reduction of food waste. The SFC Concept Study Group expects the experiments in fiscal 2021 will offer deeper insights through segmentation of the food chain.

In 2020, JRI set up an R&D project team specialized in food. With food tech attracting ever greater attention, food manufacturers and other clients are increasingly turning to JRI for advice related to food. Establishment of this team underlines JRI’s commitment to food-related consulting. The team also spearheads activities of the SFC Concept Study Group.

The team’s activities are informed by the view that changing consumers’ behavior is more important than changing consumers’ awareness of the need to reduce food loss and waste. Consumers who are aware of the need to reduce food loss and waste have already changed their behavior, but in order to resolve the issue, it is necessary to subtly encourage behavioral change among consumers who are unaware of the issue.

From this perspective, the role of companies in introducing mechanisms related to purchase and consumption, including the ways in which products are sold at stores, becomes increasingly important. For example, the experiment for the third segment offers new mechanisms from the viewpoint of “health,” which are also designed to reduce food waste, and are expected to facilitate behavioral change among consumers who are unaware of the issue. On the other hand, in the case of consumers who are already keenly aware of the issue, offering diverse purchasing options through dynamic pricing is likely to result in greater reductions in food waste. All the demonstration experiments share an approach emphasizing behavioral change of consumers through steps taken in each of the three segments of the food chain.

Following the completion of the demonstration experiments in February 2022, the SFC Concept Study Group will perform detailed verification. By offering consulting to clients, JRI will continue its efforts to reduce food loss and waste.