Law 1/2025 on the Prevention of Food Loss and Waste

Impact: On 2 April 2025, Law 1/2025 on the Prevention of Food Loss and Waste (“Law 1/2025”) was published in the Official State Gazette. This piece of legislation represents a significant step forward compared to its immediate predecessor (Law 7/2022 on Waste and Contaminated Land for a Circular Economy) and adds to the body of regional regulations already in force (as is the case in Navarre and Castilla-La Mancha). Once enacted, it must be considered in ongoing initiatives aimed at improving regulations governing the operation of the food supply chain, both at national and EU level.

Affected sectors: Its application will directly impact strategic sectors, namely: 

1. Operators within the primary sector (agriculture, livestock, fisheries).
2. Food industry entities (companies engaged in the processing, manufacturing or distribution of foodstuffs).
3. Wholesale and retail distributors.
4. Companies in the hospitality or catering sectors.
5. Other food service providers (such as healthcare, educational, penitentiary, migrant detention centres, social care residences, and, in general, any permanent establishment offering catering or meal services);
6. Entities from the so-called third sector (social action organisations, social initiatives and other non-profit organisations engaged in the distribution of donated food).
7. Public authorities, which will also be subject to compliance and must assess whether such obligations should extend to contractors already operating public services (e.g., hospitals, administrative centres), as well as be reflected in the tender specifications for future contracts.

Common Obligations for All Food Chain Operators:

1. Prevention Plan in accordance with the hierarchy of food uses  – This hierarchy legally establishes the priority order all operators must follow in handling food products: (i) preventive measures against food loss; (ii) promotion of donations of food suitable for human consumption; (iii) promotion of repurposing surplus food for alternative uses (e.g., animal feed or industrial processing); and (iv) energy recovery or composting of food that cannot be otherwise used.
   
   Each entity must apply this hierarchy according to its specific characteristics and context but must adhere to this order unless justified exceptions apply — an aspect that introduces an element of legal uncertainty which ought to be clarified.
    
2. Food donation. – In addition to the reference in Article 19 of Law 7/2022, Law 1/2025 mandates the promotion of agreements for the donation of surplus food to social initiative entities, non-profit organisations or food banks. Article 7 sets out the minimum required content of such agreements. VAT treatment and applicable tax incentives must also be properly addressed.

General obligations shall not apply to micro-enterprises, small agricultural holdings, and food operators whose establishments do not exceed 1,300 m², whether or not open to the public.

These obligations present significant challenges for corporate compliance and ESG objectives, as companies will be required to align internal policies and production processes, identify where and how food waste can be prevented, and implement appropriate reduction measures.

Sector-Specific Obligations:

1. Hospitality and Catering – Businesses in this sector must allow customers to take away uneaten food at no extra cost (apart from the cost of suitable containers), and must clearly inform customers of this, preferably within the menu. Containers must be food-safe, reusable or easily recyclable.
   
   Recommended best practices include sustainable purchasing, flexible menus, redistribution of uneaten food, delivery of food waste for composting, enhanced organic waste recycling, staff training in waste prevention, and participation in awareness campaigns.
    
2. Retail Food Sales – Additional measures are imposed on businesses selling food to end consumers (Article 12.1). These include obligations to (i) improve communication regarding the safety of consuming imperfect products; (ii) promote dedicated sales lines for such products; and (iii) support the sale of more sustainably produced food.
   
   Recommended commercial practices to reduce food waste include improving handling and transport infrastructure; applying specific protocols; promoting the sale of near-expiry or aesthetically flawed items; encouraging consumption of seasonal and sustainable products; enhancing consumer information on food usage; staff training and public awareness initiatives.

Specific obligations are also set for non-profit food donation organisations and for public administrations, which are encouraged to adopt measures aimed at rationalising "best before" dates.

What Are the consequences of Non-Compliance? The sanctions regime is set out in Articles 18 to 24 of Law 1/2025, with penalties reaching up to EUR 500,000.

Regional governments (Autonomous Communities) are empowered to raise these thresholds or impose additional sanctions, further increasing uncertainty as to the standards of compliance that will be required.

When Does It Enter into Force? Law 1/2025 establishes that it shall enter into force retroactively on 2 January 2025. However, general obligations will not become enforceable until 2 April 2026, thereby providing a transitional period for affected parties to adapt accordingly.