December 11, 2024
(press release)
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In staple foods and cooking ingredients and meals, consumers are increasingly discerning, prioritising locally sourced, high-quality products that embrace clean labels, as they are increasingly conscious of their health and the ultra-processed food stigma. In fact, sustainability is fuelling expansion in the staple foods and cooking ingredients and meals industries, with sustainable products retail value sales growing at a 7% CAGR (2020-2023). Leveraging insights from the AI-powered Passport Sustainability platform, Euromonitor emphasises the need for businesses to adopt transparent sustainability measures. This crucial step not only aids in mitigating risks and adhering to regulations, but also capitalises on the growing consumer preference for sustainable products. Here are some insights from Euromonitor’s Unlocking Sustainability Opportunities in Packaged Food report. Safe, healthy and sustainably sourced are increasingly becoming the norm Companies in the staple foods and cooking ingredients and meals sectors are challenged to transition away from artificial ingredients. They are working towards establishing more sustainable supply chains that will enable them to provide consumers with healthier, affordably priced kitchen essentials. This transition is particularly pertinent in high-emission sectors like meat and seafood. Here, sustainable sourcing practices, including responsible marine sourcing and adherence to animal welfare standards, are becoming increasingly commonplace. Rice, pasta and noodles is the fastest growing category, recording double-digit CAGR growth in sales in 2020-2023 Source: Euromonitor Claims Tracker To mitigate supply chain disruptions, the industry is adopting various strategies, including the use of plant-based ingredients, water-efficient crops, and local production methods. Innovative products such as pasta and noodles made from alternative flours like wheat, quinoa, soybeans, legumes, and spirulina alga have emerged, catering to a range of dietary needs, such as gluten intolerance, as well as diverse taste preferences. Combining claims to enhance consumer education and transparency "Natural" and "organic" have emerged as predominant buzzwords in the realm of sustainability, with over half of global consumers placing their trust in these labels. However, about one third of these consumers mistakenly perceive "natural" as equivalent to "organic", while more than 40% wrongly believe both terms imply an absence of chemicals. This misunderstanding presents an opportunity for brands to provide clear, educating messages. Brands commonly combine "Natural", "Organic", and "Non-GMO" labels to assure consumers of product safety and real sustainability. They also broaden vegetarian and vegan offerings, catering to the 36% of the population avoiding meat and affirming their environmental commitments through specific sustainable sourcing claims, particularly related to biodiversity conservation and fair farmer pay, like Brioche Pasquier's use of Rainforest Alliance-certified chocolate in the baked goods sector. Staple foods and cooking ingredients and meals sustainability examples As nearly half of global consumers are curbing their animal product consumption, the potential for business growth in plant-based alternatives remains significant within packaged food products. For instance, in June 2024, BettaF!sh launched a vegan salmon in Germany. Crafted from organic European seaweed and plant proteins, it is a sustainable, protein-rich seafood alternative, as the zero-input seaweed cultivation absorbs CO2 and boosts underwater biodiversity, minimising carbon emissions and resource exploitation. Meanwhile, in September 2024, Ferrero unveiled a plant-based version of its iconic Nutella hazelnut spread in select European markets. This vegan certified option swaps traditional milk for plant-based ingredients such as chickpeas and rice syrup, along with being packed in a recyclable jar. Finally, Maggi launched Oats Noodles with Millet Magic which comprises sorghum (jowar) and finger millet (ragi) along with “goodness-filled” oats in late 2023 in India. Leveraging millet’s acceptability, accessibility and cost-effectiveness, this new launch caters to the increasing demand for more reasonably priced natural ingredients. Learn more about sustainability in our report, Unlocking Sustainability Opportunities in Packaged Food, and visit our Sustainability page for further insights on where to play and how to win with sustainable claims.
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