Retailers smashed their targets for reducing supply chain and packaging waste last year but household waste targets have been missed.

A new report published today revealed traditional grocery product and packaging waste was cut by 7.4% or 217,000 tonnes, exceeding the 5% target.

Household food and drink waste was however only reduced by 3.7%, falling short of the 4% target. WRAP said although the target was “narrowly missed”, the avoidable household food waste was reduced by 5.3%, which saved consumers £700 million and local authorities £20 million in 2012 alone.

The targets were set under the second Courtauld Commitment – a voluntary agreement – which ran between 2010 and 2012, with 1.7 million tonnes of waste prevented and £3.1 billion saved in total.

Resource Management Minister Dan Rogerson said: “Everyone has a role to play in reducing waste and I want to see more businesses helping consumers to waste less food and save money. We have made great strides in reducing food and packaging waste and I’m delighted with the progress so far.”

The third phase will run between 2013 and 2015 and around 50 retailers, brands and manufacturers have signed up.