The Lords EU committee also said big retailers should stop cancelling orders of food from farmers after the produce had been grown, a practice that leads to edible food being ploughed back into the fields.
The committee said more unused food should be donated to food banks rather than sent for composting or landfill.
The committee chairwoman, Lady Scott of Needham Market, said the peers were shocked at the scale of food waste. About 15 million tonnes of food are dumped each year in the UK and at least 90 million tonnes across the EU.
"We are urging the supermarkets to look again at offers such as 'buy one get one free', which can encourage excess consumption which leads to food waste. We also think supermarkets must work much more closely with their suppliers so as not to cancel pre-ordered food which has been grown, is perfectly edible and is then ploughed straight back into the field.
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"Food waste in the EU and the UK is clearly a huge issue. Not only is it morally repugnant, but it has serious economic and environmental implications," Scott said.
"The fact that 90 million tonnes of food is wasted across the EU each year shows the extent of the problem and explains why we are calling for urgent action. Globally, consumers in industrialised nations waste up to 222 million tonnes of food a year, which is equivalent to nearly the entire level of net food production of sub-Saharan Africa.
The report found that the carbon footprint of worldwide food waste was equivalent to twice the greenhouse gas emissions of all road transportation in the US.