The Confusing Food Labeling That's Adding $2,500 to Australian Family Expenses Each Year

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Unclear and inconsistent food date labels are contributing significantly to household food waste, according to new research, and it’s costing the average family up to $2,500 annually in discarded groceries.

The study from RMIT University and End Food Waste Australia shows that Australia discards around 7.6 million tonnes of food annually, much of it still safe to eat.

Researchers are calling for a national overhaul of food labelling, recommending clearer date markings, larger print, and simple icons to help consumers understand how long food stays safe and how it should be stored.

Professor Lukas Parker from RMIT says the research points to poor label design and inconsistent packaging as key factors driving food waste.

“We’re in a cost-of-living crisis and people are doing their best to feed their families, ” he said.

“But they’re being let down by packaging that makes it too hard to make informed decisions. That waste is devastating — 2kg per family per week. It’s not just for people’s wallets, but for our farmers and our environment.”

The study suggests small changes in how information is presented, such as clearly distinguishing between “best before” and “use by” dates, could go a long way in helping shoppers decide whether food is still good to eat.

Why current labels aren’t working

The problem, researchers found, is twofold: Australians are confused about the difference between “use by” and “best before” dates, and they struggle to locate or read those dates on packaging.

“Most people understand that ‘use by’ means the food might not be safe to eat,” Parker said.

“But ‘best before’ is murkier. A lot of people throw food away just because it’s past that date, even if it’s still fine.”

The research also highlighted frustration around label location, font size, and formatting, such as dates printed in hard-to-read spots like the crinkled rim of a can.

“It takes a lot of effort to find and understand date labels, and that effort makes it harder for people to make the right call,” Parker said.

Despite widespread consumer support for clearer labelling, researchers found that the food industry has been hesitant to make changes.

In a series of workshops, food producers and retailers raised concerns about costs, compliance issues and regulatory red tape.

Tristan Butt, CEO of End Food Waste Australia, said reducing waste through improved labelling will only be possible if all parts of the supply chain work together.

“Clear, consistent date labelling is one of the most cost-effective and scalable ways to reduce household food waste, but it won’t happen without industry-wide collaboration,” Butt said.

“This single change could prevent nearly a million tonnes of food waste by 2030.

“The UK’s retail sector has already proven this change is possible, without compromising food safety. It’s time we did the same.”

Industry wants direction, government says change is coming

The workshops revealed that food manufacturers and retailers are hesitant to act alone, fearing that early adopters might face financial or competitive disadvantages.

“Everyone’s waiting for someone else to go first,” Parker said.

“The government wants industry to take action, and industry wants clearer direction from government.”

Despite this stalemate, Parker says there’s strong in-principle support for clearer labels across the board.

The next phase of the National Date Labelling and Storage Advice Project will bring together government and industry partners to test and co-design clearer labelling.