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Driving Sustainability: Key Trends and Opportunities for Food Manufacturers

by | Oct 28, 2024 | Uncategorized

We keep hearing that consumers want more sustainable products. But what does that actually mean? For food and beverages, “sustainable” is generally understood as those which use upcycled ingredients, require minimal processing, support ethical practices and have a positive impact from an environmental perspective. Much like clean labels, sustainable foods do not have a singular logo or certification, but there are many indications that can help alert consumers of products with sustainability-related characteristics.

Decidedly, this increased emphasis on sustainability impacts brands as well as retailers in a number of ways…

First, new brands and companies have sprung up with sustainable products across all aisles, giving even multi-nationals with mainstream products a run for share. This impacts retailer shelf sets, promotions and margins not to mention increased competition for their owned brands.

Second, traditional retail outlets face increased competition from companies like Thrive Market and Misfits Market, which are setting the example for how sustainability can be achieved for one of human’s most fundamental needs.

In addition to a boom of new products and outlets from which to buy them, consumers can also look to resources like The Good Shoppers Guide and Litterless to quickly summarize how brands stack up to each other, which rank highest, and which have opportunity to improve.

For brands, sustainability can represent a huge opportunity, but not without risks (e.g., perception of greenwashing). Companies like Upcycled Foods Lab offer expertise in development of upcycled products, potentially saving time and resources on the way to commercialization.

While there are innumerate examples of packaged foods and drinks that support sustainability, we wanted to highlight a few standouts from select categories. These categories and the product examples were chosen based on factors such as category size, general trends and uniqueness, and the products can serve as a model for other brands as they consider how to create differentiation and capture share.

Standout Categories for Food Sustainability

Snacks: On-the-go, single serve, family size, limited-time flavors – these are just a few of the many reasons to love the snacks category (other than, well, snacks). As one of the largest categories by volume and with a seemingly endless stream of innovation to keep eating exciting, snacks are an excellent place where manufacturers can have a big impact on sustainability. ReGrained and Renewal Mill use spent barley and upcycled plant proteins in their granola bars and cookies, while Hippeas and Uglies leverage misshapen, smaller-than-normal and blemished vegetables, which otherwise end in the landfill as they fail to meet consumer or retail standards for appearance.

Convenience Meals: There’s a general understanding about the importance of food as it relates to well-being, and convenience meals can serve as a pathway for consumers to obtain the proteins, minerals and other elements needed to perform (especially when things are hectic or there’s no ambition to cook!). Plus, severe natural events, like the hurricanes that recently hit the southeastern United States, are a reminder of the need for nutritious, tasty foods that are easily consumed.

Convenience meals have come a long way in the last decade and now boast a range of delicious and distinguished products with ingredients such as rice, beans, quinoa and vegetables. Jasberry has several “rice plus” options (rice + beans, rice + ancient grains), and Seeds of Change has a filling brown rice and quinoa medley. Thrive Market has a lentil stew that can be eaten as a standalone or as a meal starter.

These products use sustainable ingredients and are contained in pouch packaging, which extends the shelf life of food and reduces the potential for waste. And, if that weren’t enough, plant-based options offer satiety, can be a good source of protein and have less carbon emissions, water quality issues and animal welfare claims than their animal-based counterparts.

Sweets/Desserts: While outside of the top 10 largest categories, this very broad range of products gets an Honorable Mention because of the specific challenges it faces in supporting sustainability, particularly in chocolate and frozen desserts. Cocoa, cocoa butter, palm oil, tropical fruit and nuts have earned scrutiny in the past for the practices previously used across all aspects of the supply chain, including growing, harvest, processing and sale. Rainforest Alliance and Fair Trade are examples of agencies that investigate and certify various sustainability-related factors, and their logos are trusted beacons of sustainability by consumers.

Including on-pack logos of certifying agencies is an effective way to highlight approval, and according to the Fair Trade, USA, three out of four American consumers report recognizing the Fair Trade seal. Two brands which feature the seal are Tony’s Chocolonely and Hu Kitchen, each which have extensive ranges of unique and undeniably delicious chocolate bars. For their part, Ben & Jerry’s has expanded their line of pint-sized ice creams to include non-dairy varieties, which contribute fewer greenhouse gasses than those made with dairy.

To Sum It Up…

Sustainability in food and beverages isn’t just a trend—it’s a movement with far-reaching effects on both the planet and people’s well-being. By embracing sustainable practices, manufacturers contribute to preserving natural resources, reducing waste, and promoting ethical sourcing. These efforts enhance product quality and directly impact consumers’ lives by offering healthier, environmentally conscious choices. 

Ultimately, the commitment to sustainability improves not only our ecosystems but also the overall quality of life for consumers, fostering a future where people can enjoy nutritious, responsibly produced food while feeling good about the choices they make.

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