The Economics of Expiration Dates - Behind Japan's 4.72 Million Tons of Annual Food Waste

Best-before dates and use-by dates look similar, but they mean entirely different things. Surprisingly few consumers understand the distinction clearly.

Best-before date. This is a guideline for when a product tastes its best. Passing this date does not mean the food is suddenly unsafe. You will find it on canned goods, snack foods, instant noodles, bottled drinks, and other shelf-stable items. A cup of instant noodles one day past its best-before date is virtually identical in taste and safety.

Use-by date. This is the deadline for safe consumption. Once it passes, microbial growth raises the risk of food poisoning. It appears on bento boxes, sandwiches, fresh pastries, raw meat, and other perishable items. Food past its use-by date should not be eaten.

The key detail is that best-before dates include a built-in "safety factor." Manufacturers test the actual shelf life, then multiply it by a coefficient of 0.7 to 0.8 to set the best-before date. In other words, a product labeled with a 6-month best-before period actually retains its quality for 7.5 to 8.5 months. Food just past its best-before date is usually still perfectly fine to eat. Search "ニーハイソックス" on Amazon

Japan's food distribution system follows a unique trade practice known as the "one-third rule." It divides the best-before period into three equal parts: the first third is the "delivery deadline" and the second third is the "sales deadline."

Take a product with a 6-month best-before period as an example. The manufacturer must deliver it to the retailer within 2 months of production (delivery deadline). The retailer must sell it within 4 months of production (sales deadline). Once the sales deadline passes, the product is pulled from shelves even though 2 months of shelf life remain.

This rule causes massive amounts of perfectly edible food to be discarded. According to estimates by Japan's Ministry of Agriculture, Forestry and Fisheries, the country generates roughly 4.72 million tons of food waste per year (fiscal 2022). A significant share of that is attributed to the one-third rule.

In recent years, momentum to reform this practice has been building. Major retail chains have relaxed the delivery deadline to "one-half," and convenience stores have started marking down near-expiry items. Changing consumer attitudes matters just as much: dispelling the misconception that "close to the best-before date means poor quality" is the key to reducing food waste.

The market for "food outlets" that sell near-expiry or just-past-best-before products at a discount is expanding rapidly.

Brick-and-mortar services such as Eco Eat, KURADASHI, and Otameshi sell near-expiry food at 30 to 70% off the regular price. Their business model simultaneously reduces food waste and helps consumers save money.

Online, Amazon's "Outlet" category and Rakuten's "imperfect goods" section offer near-expiry food at reduced prices. Amazon Prime members can get free shipping on outlet food items as well.

The golden rule when shopping at food outlets is to buy only what you can consume right away. Stocking up just because it is cheap often leads to throwing food away at home. It is the same trap described in the pitfalls of bulk buying.

Best-before date formatting is shifting from "year-month-day" to "year-month." Since 2024, major food manufacturers have been switching to year-month labeling one after another.

Instead of "April 15, 2026," the label simply reads "April 2026." This change eliminates the need to manage products manufactured just days apart as separate lots, which is expected to streamline logistics and reduce food waste.

The impact on consumers is minimal. The change applies to products with a best-before period of 3 months or longer, such as canned goods, dried noodles, and seasonings. Fresh products that require daily precision will continue to display the full year-month-day format.

In fact, consumers stand to benefit. When products labeled "April 15" and "April 20" sit side by side on a shelf, most people reach for the April 20 one. But if both simply say "April," there is no difference to choose between. This discourages the habit of digging to the back of the shelf for the newest item and promotes first-in, first-out consumption.

Now that you understand how best-before and use-by dates work, here are practical techniques for trimming your grocery bill.

Actively choose products close to their best-before date. Items near the front of supermarket shelves are often close to their best-before date and carry a discount sticker. If you plan to eat them soon, there is nothing wrong with the quality. Combine this with day-of-the-week shopping strategies and aim for markdowns in the evening hours.

Make the most of your freezer. Meat and bread approaching their use-by date can be frozen and stored for 1 to 2 months. Buy half-price meat on its use-by day and freeze it immediately. Once thawed and cooked, the quality is virtually unchanged.

Check food outlet sites regularly. Online food outlets rotate their inventory unpredictably. Check in periodically to stock up on everyday staples like seasonings and dried noodles at a fraction of the regular price.

Use food-sharing apps. Apps like TABETE let you buy unsold items from restaurants and bakeries near closing time at a discount. Unlike food delivery services, you pick up the food yourself, which eliminates delivery fees and makes the meal even cheaper.