Where I live, I’m often reminded (by the availability of only seasonal fresh produce) of the need for sustainability in the Food Industry. Sustainability is a hot topic globally and this article discusses why it is imperative to address issue and some of the challenges companies face in achieving this from an economic perspective.
Consumer Demand
NielsenIQ recently reported that 61% of UK consumers say that sustainability is more important to them now than it was 2 years ago when considering food purchases. The survey also found that the three most important sustainability concerns for UK consumers are; reducing food waste (45%), buying local/British (36%), and minimal/no packaging (26%).
A consequence of Covid and lockdowns was that people had time to research, read and reflect on lifestyle choices. The number of people becoming more aware of the environmental ramifications of their food purchasing choices increased and, in addition, they exhibited a greater concern for their own health and well-being, believing that eating sustainable food is a way to improve their health. This consciousness has not disappeared with time. Consumer demand is driving innovation for future progress, creating opportunities for food companies that are able to meet this demand.
Challenges to Introducing Sustainability Programs
However, the benefits of achieving sustainability are not without a fair share of challenges.
- Implementing sustainable practices often requires a significant up-front investment in terms of infrastructure, technology and equipment. Although the long term economic benefits through resource efficiency and cost savings are evident for the future, the costs can be daunting initially.
- The current Cost of Living Crisis means that market demand and price points are a delicate issue. Sustainable products are often higher due to additional costs involved in production. Finding the balance between meeting consumer demand for sustainable options and ensuring that they are affordable to maintain a competitive position is a challenge.
- Food manufacturing involves complex supply chains, making the full tracking of sustainability through the whole food production process difficult. Good communications, coordination and collaboration are crucial to overcome these issues.
Steps Towards Sustainability
Consumer education is an area often neglected in the pursuit of sustainability but it is difficult to encourage higher spends for more sustainable products without it. Getting the message right for your customers is important in helping an overall understanding of how the business works to reduce environmental impact and increase sustainability throughout. Although not food related, BBCEarth produced a report on what happens to clothing ordered and returned from some of the online stores. I wonder how many would continue to order from the same companies if they were made aware that the returns for that particular company simply ended up as landfill because it makes better economic sense to do this than to repackage for new orders.
https://www.bbcearth.com/news/your-brand-new-returns-end-up-in-landfill
Sustainability Success
According to its website, Waitrose has a portfolio of sustainability initiatives already in place, and these initiatives have had a number of economic benefits for the company including:
- Reduced costs: By reducing its environmental impact, Waitrose has been able to save money on energy, water, and waste disposal costs.
- Improved reputation: Waitrose is seen as a leader in sustainability, which has helped to attract customers and investors. In 2022, Waitrose was named the most sustainable supermarket in the UK by the Sustainable Business Index.
- Increased employee satisfaction: Employees at Waitrose are more likely to be satisfied with their jobs if they work for a company that is committed to sustainability. This is because sustainability initiatives can create a more positive work environment and a sense of purpose among employees.
- Enhanced innovation: Sustainability can drive innovation by encouraging businesses to find new ways to reduce their environmental impact. Waitrose has been at the forefront of innovation in sustainability, and this has helped the company to stay ahead of the competition.
Suggestions for A Sustainable Future in Food
- Reduce food waste. Food waste is a major problem in the food industry. One report suggests that approximately one-third of all food produced for human consumption is wasted. Food manufacturers can reduce food waste by improving their production processes, using smaller packaging, and educating consumers about how to store and use food properly. I’ve already had the pleasure of learning about the use of AI technological innovation which will aim to reduce waste in production – it just makes more sense!
- Use sustainable ingredients (including seasonal where possible). This means sourcing ingredients from sustainable and, where possible, local farms that use practices that protect the environment. For example, farmers can use crop rotation to reduce soil erosion and use cover crops to improve soil health. They can also use sustainable irrigation methods to conserve water.
- Use sustainable packaging. Packaging is a major source of waste in the food industry but there are many packaging manufacturers investing in more ethical and sustainable products. Food manufacturers can reduce their environmental impact by auditing their own packaging processes and making the conscious decision to switch to sustainable packaging materials, such as recycled paper or compostable plastics.
- Use energy-efficient equipment. This doesn’t always mean changing equipment which can be costly, but even energy efficient light bulbs have a large impact at scale. Look at how to make existing machinery more efficient. Be pro-active about plant reliability and energy consumption. This not only helps the planet, but can create significant cost reductions within the business. For example, a compressed gas leak hole of only 10mm diameter in a pipe can represent a cost of £21,000 per annum to a business.
- Use water-efficient practices. Water is a precious resource. Food manufacturers can reduce their water consumption by using water-efficient irrigation methods and by investing in recycling water methods.
- Adopt sustainable business practices. Food manufacturers can adopt sustainable business practices by reducing their carbon emissions, supporting fair labour practices, and giving back to the community. I am aware that many in the industry already have policies for this in place, but there are also many who do not.
- Get the message out there to your consumers! We can’t have our cake and eat it. Let your consumers know what you are doing to help and why. We all need to be a part of the process.
Although the way forward for a sustainable future in food manufacturing is clearly demanding, this crucial next stage in manufacturing will pave the way for an industry that is more sustainable than ever before.