With sustainability in the food and beverage industry drawing attention on global platforms, such as the COP28 UAE Declaration, stakeholders seek to transform their food systems. Sustainability will gain momentum in the nutrition industry because of the growing manufacturer and consumer awareness about the environment and government initiatives to reduce the carbon footprint.
Ingredient manufacturers intend to source sustainable raw materials and adopt energy-efficient production processes that consume less water. These companies will support and incentivize regenerative agricultural practices. They also plan to use renewable energy sources to run their business operations; thus, reducing their carbon footprints.
Downstream companies’ demand for sustainable products and processes to meet their carbon emission targets under the Scope 3 greenhouse gas (GHG) category will push nutrition companies to follow sustainable practices and offer products with reduced carbon footprints.
Europe leads the world toward a sustainable future. It has introduced various strategic initiatives, such as the Green Deal and single-use plastic legislation. These initiatives will accelerate sustainability practices’ implementation in the nutrition industry.
Companies will promote carbon-neutral supply chains by integrating technology, implementing eco-friendly packaging, and educating their customers on sustainable choices to meet their UN sustainable development goals (SDGs).
Food waste management will remain a key point in the nutrition industry’s agenda. This is due to the limited options available for tackling emissions from food wastage. Companies will leverage technology to reduce food loss at various stages in the supply chain.
Investments in start-ups researching and innovating sustainable alternatives will gain traction, such as proteins and feed ingredients to improve feed efficiency.
The nutrition industry’s hurdles to sustainability include the high cost and low return on investment of implementation; the lack of uniform standards and regulations, universal measuring and reporting tools, and methods to quantify sustainability efforts’ impact; and the poor visibility around sustainable practices’ adoption in contract manufacturing.
The Impact of the Top 3 Strategic Imperatives on Sustainability Practices in the Human and Animal Nutrition Industry
Disruptive Technologies
Why: The integration of various sustainable practices with digital technologies will transform agriculture business models globally.
Strategic collaborations with large players and new start-ups will reduce the cost of adopting digital technologies across the value chain.
A shift toward green production technologies and the adoption of practices like recycling, upcycling, and downcycling will enable sustainable production.
Frost Perspective: Digital technologies will enable sustainable practices across the whole nutrition supply chain and offer growth opportunities to value chain participants.
More products will use ingredients from regenerative farms in the next 2 to 3 years.
The use of upcycling technologies will expand.
Investments in synthetic biology and biotechnology processes will grow.
The adoption rates of energy-management technology will increase. This technology will reduce value chain participants’ energy footprint.
Transformative Megatrends
Why: Population growth will affect food consumption, agricultural productivity, and related resource requirements, such as energy and water.
Agricultural production and associated land use account for most greenhouse gas emissions (GHG). As a result, adopting sustainable farming practices is fundamental.
The increasing frequency of adverse weather events due to climate change drives the adoption of climate-resilient practices.
Frost Perspective: Farmers around the world are recognizing the need to transition from current intensive agriculture practices to more sustainable alternatives. The adoption rate of sustainable farming methods, such as regenerative farming, will increase in the next 1 to 2 years.
Agriculture and nutrition stakeholders are taking aggressive initiatives to cut GHG emissions. The projects will grow in scope as participants set targets to reduce Scope 1 and Scope 2 emissions by 2030.
Irrespective of their positions in the value chain, companies are adopting climate-resilient and resource-efficient practices, and that will expand over the forecast period.
Geopolitical Chaos
Why: Trade tensions between the United States and China will drive the need for sustainable supply chains with greater transparency.
The Russo-Ukrainian War and other such conflicts put pressure on food production and supply chains, leading to increasing food prices and growing food security challenges.
Frost Perspective: Besides digital technology adoption, local and hyperlocal sourcing will expand as value chain participants aim to make supply chains leaner and smarter.
As more countries seek self-sufficiency, the adoption of next-generation farming systems and technologies will expand. For instance, there is a growing investment in vertical farming systems in the Middle East and Singapore.
Scope of Analysis
This analysis assesses the sustainability initiatives and practices adopted by key players in the human and animal nutrition industry. It highlights the key factors driving their adoption and the key challenges the industry faces.
The analysis focuses on understanding the sector’s best practices that are meant to drive sustainability across supply chains. Companies have been selected according to their position in the human and/or animal nutrition ingredients space and their focus on sustainability.
The document is structured into 5 chapters: climate and environmental changes, consumer demand, regulatory requirements, technological advancements and business incentives, and brand image and reputation.
The analysis highlights products and solutions that these top ingredient companies offer to meet the growing customer demand for sustainable products and solutions.
It also examines the key regional regulatory frameworks supporting sustainability in the nutrition industry.
This analysis complements the Global Sustainable Agriculture Growth Opportunities and Growth Opportunities in Decarbonizing the Agriculture and Nutrition Value Chain reports published in 2022.
Key Competitors
Global
- Archer Daniels Midland Company (ADM)
- Bluestar Adisseo (Adisseo)
- Arla Food Ingredients
- BASF
- Cargill
- dsm-firmenich
- FrieslandCampina
- Glanbia Nutritionals
- International Flavors & Fragrances (IFF)
- Ingredion
- Kemin Industries
- Kerry Group
- Novus International
- Roquette
- Tate & Lyle
North America
- ADM
- Cargill
- Glanbia Nutritionals
- IFF
- Ingredion
- Kemin Industries
- Novus International
Europe
- BASF
- Arla Food Ingredients
- dsm-firmenich
- Kerry Group
- Roquette
- Tate & Lyle
APAC and the Rest of the World
- Adisseo
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on Sustainability Practices in the Human and Animal Nutrition Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
List of Abbreviations
Scope of Analysis
Scope of Analysis (continued)
6P Framework for the Future of the Sustainability and Circular Economy: More with Less
Key Findings
Key Competitors
What is Sustainability?
GHG Protocol: Overview
The Need for Sustainability in the Nutrition Industry
Top Trends Spotlight
Top Trend Analysis: Human Nutrition
Top Trend Analysis: Human Nutrition (continued)
Top Trend Analysis: Animal Nutrition
Key Challenges in Achieving Sustainability
Key Factors Contributing to the Adoption of Sustainable Practices
Sustainability Benchmarking: Key Participants
Climate and Environmental Change: What Are the Value Chain Participants Doing?
Competitive Benchmarking: Climate Initiative Mapping
Competitive Benchmarking: Climate Initiative Mapping (continued)
Competitive Benchmarking: Climate Initiative Mapping, Use Cases
Competitive Benchmarking: Climate Initiative Mapping, Use Cases (continued)
Competitive Benchmarking: Climate Initiative Mapping, Use Cases (continued)
Case Study: Top 4 Climate Initiatives by ADM
Case Study: Top 4 Climate Initiatives by ADM (continued)
Consumer Demand: Overview
Changing Consumer Demand: What are the Value Chain Participants Doing?
Changing Consumer Demand: What are the Value Chain Participants Doing? (continued)
Competitive Benchmarking: Mapping Product/Solution Offerings
Competitive Benchmarking: Mapping Product/Solution Offerings (continued)
Alternative Proteins
Alternative Protein Ingredients: Key Start-ups
Alternative Protein Ingredients: Key Start-ups (continued)
Regulatory Requirements: What are the Value Chain Participants Doing?
Global Sustainability/ESG Reporting Frameworks
Global Sustainability Policies
Government Initiatives to Boost Sustainable Practices
Government Initiatives to Boost Sustainable Practices (continued)
Government Initiatives to Boost Sustainable Practices (continued)
Government Initiatives to Boost Sustainable Practices (continued)
Competitive Benchmarking: SDG Mapping and ESG Compliance
Competitive Benchmarking: SDG Mapping and ESG Compliance (continued)
Technological Advancements Enabling Sustainability in Nutrition
Technological Advancements Enabling Sustainability in Nutrition (continued)
Competitive Benchmarking: Mapping Technology Initiatives
Competitive Benchmarking: Mapping Technology Initiatives (continued)
Competitive Benchmarking: Mapping Technology Initiatives (continued)
Competitive Benchmarking: Mapping Technology Initiatives (continued)
Business Incentives to Boost Sustainable Business Practices: What are the Value Chain Participants Doing?
Sustainable Practices to Build a Brand Image and Enhance Reputation
Funding Ecosystem
Examples of Business Incentives
Examples of Business Incentives (continued)
Growth Opportunity 1: Sustainable Supply Chain Management
Growth Opportunity 1: Sustainable Supply Chain Management (continued)
Growth Opportunity 2: Food Waste Reduction Solutions
Growth Opportunity 2: Food Waste Reduction Solutions (continued)
Growth Opportunity 3: Mergers, Acquisitions, and Partnerships
Growth Opportunity 3: Mergers, Acquisitions, and Partnerships (continued)
Mandatory ESG/Sustainability Disclosure Regulations by Country
Mandatory ESG/Sustainability Disclosure Regulations by Country (continued)
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| Deliverable Type | Market Research |
|---|---|
| Author | Ruchira Sunil Yadav |
| Industries | Agriculture and Nutrition |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Sustainability Practices In Nutrition Industry |
| Keyword 2 | Human And Animal Nutrition Market |
| Keyword 3 | Nutrition Industry Forecast |
| Podcast | No |
| WIP Number | PF80-01-00-00-00 |
Sustainability Practices and Growth Opportunities in the Human and Animal Nutrition Industry
Sustainability Practices, Transformative Megatrends, and Innovative Technologies Driving Growth
28-Mar-2024
Global
Market Research