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How Supply Chains, Retailers and Waste are Keeping Grocery Prices High

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For millions of Americans, grocery shopping has become an increasingly frustrating experience. Every trip to the store seems to come with a little sticker shock, and despite political promises and economic shifts, food prices remain stubbornly high. In order to balance rising costs with everyday needs, families are stretching their budgets even further than ever before.

While inflation and energy costs often take the blame, grocery prices are shaped by a web of deeper issues — ones that don’t always make the headlines. The reality is that supply chain breakdowns, retail pricing tactics and even the way we shop all contribute to the problem. Add in the staggering amount of food that gets wasted before it ever reaches a plate, and it’s clear that grocery prices aren’t just about the economy — they’re the result of an industry that hasn’t adapted quickly enough to meet the way we shop today.

Why Grocery Prices are Still so High

It’s easy to assume that inflation is the sole reason groceries cost more, but the truth is a little more complicated. While supply chain disruptions continue to push prices up, transportation delays, labor shortages and unpredictable weather all add to the larger problem. When it takes longer and costs more to get food from farms and factories to store shelves, those added costs don’t just disappear — they show up on our receipts.

Retail pricing strategies also have a major impact on what we pay. Traditional grocers maximize profits by using dynamic pricing, promotions and supplier negotiations. Prices can change based on location, demand and even store loyalty programs, making it tough to predict what your grocery bill will look like from one trip to the next. Even things that seem like a great way to save, such as bulk discounts or promotional pricing, can often encourage consumers to buy more than they need, which drives up spending instead of keeping costs down.

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Then there’s how we shop: The rise of online grocery shopping has made food more accessible, but it also has introduced new costs to think about, like fulfillment and delivery fees. Meanwhile, shifting brand loyalties and bulk-buying habits have forced retailers to rethink their inventory strategies, which can lead to even more price increases for consumers. Understanding these factors is the first step in making smarter choices at checkout, yet there’s another major issue that isn’t talked about enough: food waste.

The Hidden Connection Between Food Waste and Grocery Prices

One of the biggest drivers of fluctuating grocery prices is food waste. Perfectly good food gets thrown out every day, not because it’s expired, but because of supply chain miscalculations, packaging updates, seasonal changes and other factors. That waste not only hurts the environment but costs the industry billions, and those losses get passed down to consumers.

Retailers and manufacturers regularly overproduce to avoid running out of stock. When demand falls short, they’re left with excess food and nowhere to put it. A simple label change or the passing of a holiday can make a product “unsellable” in a traditional store, even though it’s still perfectly good. This worsens the food waste problem and drives up prices for everything else.

The numbers are staggering. The U.S. wastes more than 30% of its food supply every year, a crisis that adds to climate change and also keeps grocery prices artificially high. Retailers are working to change that though, stepping in to help redistribute surplus food at lower prices, thereby offering shoppers a way to save while reducing waste.

Simple Ways to Save on Groceries Right Now

While we can’t change how grocery stores price their products overnight, we can change the ways that we shop. One of the easiest ways to save money is by rethinking expiration dates. Many shoppers toss out food that’s still perfectly good simply because they misunderstand “best by,” “sell by” and “use by” labels. Learning the difference can help prevent waste and cut down on unnecessary grocery trips.

Other than infant formula, the federal government does not require expiration dates on food, and in most cases these labels are more about quality than safety. “Best by” indicates when a product is at peak freshness, but it’s often still good well beyond that date. “Sell by” is a guideline for retailers, not consumers, meaning the product can still be safely eaten afterward. “Use by” is the closest thing to an actual expiration date, typically found on perishables like dairy and meat, but even then, it’s best to check for signs that the product has gone bad rather than rely strictly on the label.

Another way to lower costs is by looking beyond traditional grocery stores. Online discount grocers, surplus food markets and warehouse clubs often offer the same quality food at a fraction of the price, bypassing the traditional retail markups. Shopping smarter and not just cheaper also can make a big difference. Planning meals in advance, buying shelf-stable staples in bulk and wisely taking advantage of sales can significantly help stretch a grocery budget. Other effective ways to save more while wasting less can be by freezing perishables, batch cooking and getting more creative with leftovers.

The Bottom Line

Grocery prices aren’t just a reflection of politics or inflation but are tied to a long list of inefficiencies, from outdated supply chains to retail pricing games and unnecessary food waste. While government policies and economic shifts may eventually bring relief, shoppers need solutions now.

The good news? Small changes like understanding food labels, exploring alternative retailers and making smart shopping decisions can help consumers regain control of their grocery bills. We don’t have to wait for the system to change, we just need to start shopping differently.


Louise Fritjofsson is a mission-driven four-time founder with two exits. With startups ranging from online grocery, digital marketplaces and adtech, she has a footprint in both Europe and the United States. She’s built a broad understanding of the global startup ecosystem and has won awards such as “Entrepreneur of the Year” and being listed as one of Europe’s leading female entrepreneurs over her career. Currently, Fritjofsson is transforming the problem of food waste into a solution for food insecurity as the Co-founder of Martie, the online discount grocer aimed at making good food more accessible.

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