November 27, 2024
(press release)
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In dairy products and alternatives, consumers prioritise healthfulness and clean labels, sparking sustainable innovation. Concerns about environmental impact and animal welfare drive demand for efficient production, with lower emissions and waste, diversified sources and sustainable packaging. In fact, sustainability is fuelling expansion, with sustainable products retail value sales growing at a 6% 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. From sourcing to formulation, curbing emissions is now essential Sustainability is no longer a bonus in the dairy industry; it's a necessity. The industry's carbon footprint has ignited this change, prompting traditional dairy brands to vigorously address their environmental impact. They're focusing on enhancing renewable energy, reducing methane, and embracing organic farming, while advocating for animal welfare and fair farmer compensation. Claims like "Natural" and "Recyclable" have become widely accepted, even appearing on budget-friendly products. The baby food sector embodies this shift, with "Organic" and "Non-GMO" labels becoming the norm, reflecting eco-aware parents’ dual focus on their children's health and the environment. Plant-based dairy is the fastest growing category, recording high single-digit CAGR growth in sales in 2020-2023 Source: Euromonitor Claims Tracker Also, the rise in health consciousness has accelerated the growth of the plant-based alternatives market, spurring innovation. Incorporation of fibre-rich ingredients, like flaxseed, chia, and oats, and the expansion of almond-, soy-, oat- and coconut-based products present sustainable, low carbon footprint alternatives to traditional dairy, along with providing gut health benefits. Communicate on how a product attains sustainability Decarbonisation remains at the forefront of the dairy industry, a trend likely to continue as regulatory pressures mount. For instance, Denmark intends to tax livestock carbon emissions from 2030, while the EU's Nature Restoration Law, in place since 2024, requires a minimum of 20% of EU land and sea areas to be restored. Dairy products and alternatives sustainability examples Growing demand for health-focused dairy products with added functionalities, such as for gut health, has not reduced consumer demand for sustainability, especially around sustainable sourcing practices that consider animal welfare. For example, Kerry Group has introduced a dairy and oat blend in the UK across its milk, cheese, and butter lines, combining the advantages of dairy and plant-based ingredients. This range offers a 40% cut in saturated fats and 54% lower CO2 emissions per kg compared to regular dairy, retaining taste – a key factor for health- and eco-conscious consumers. 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.
Today's knowledgeable consumers seek more than just sustainability claims – they want transparency. In response, brands are providing extensive information on their sustainability practices, using well-known claims like "Organic" and "No GMO", coupled with sustainable packaging.
As scrutiny heightens, these brands are increasingly showcasing their sustainable production methods and carbon reduction strategies. Consequently, "No Chemicals", "B Corp" and "Carbon-neutral/Reduced carbon" are the three fastest-growing claims in this period, perfectly supplementing the broader "Natural" claim.
Meanwhile, Arla Foods has rebranded its Jörd brand, consolidating its plant-based products. The Swedish oat-based line includes yoghurts, oat drinks, and barista milk. The relaunch presents a protein-rich, fortified recipe catering to health-minded and dietary-restricted consumers.
Finally, Australian firm Ashgrove has recently introduced Eco-Milk, shown to reduce methane emissions by 25%. The cows are fed a blend of muesli and SeaFeed, a dietary supplement derived from indigenous red seaweed. This supplement interacts with the cows’ digestive enzymes, aiding in the reduction of methane emissions. To further minimise Eco-Milk's carbon footprint, the product is encased in entirely recyclable packaging.
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