Key Consumer Focus for 2023: Sustainable Stewardship

Michelle French, Director, Global Sustainability Programs, ADM [NYSE: ADM]

By 2030 the global population is expected to reach 8.5 billion, up from 7.8 billion in 2020, according to data from the United Nations. Protecting the world’s resources while feeding this rapidly expanding population is of critical importance. Therefore, transparent traceability, sustainable sourcing, earth-friendly practices and expanded social responsibility are priorities with a global imperative.

Transparency Builds Vital Trust

Consumers are increasingly curious about what they eat. From soil to table, they want to know where their food originates, who was involved in its production and precisely which ingredients are part of the final product. Over 70% of global consumers say they feel more positively about companies that are transparent about where and how products were made, raised or grown¹. Traceability in the food chain means communicating what is in a product and where the ingredients were sourced. Some headway has been made in garnering consumer trust, with research showing that 42% of global consumers have become more trusting of environmental claims made by products and brands in the last two years².

There are several ways for the industry to support a stronger connection between consumers, their communities and the foods they eat. For instance, local provenance, global culinary traditions and indigenous farming practices are powerful narrative elements that can elicit brand loyalty. Hard facts can also help win hearts. Enhanced documentation and digitization can improve traceability enabling policy implementation and verification.

Environmentally Oriented Production

Many shoppers expect a higher standard from food and beverage companies regarding their environmental practices. Consumers are increasingly focused on reducing their own food waste², and they expect the same from the brands they support. Extended shelf life and innovative product packaging can go a long way to limit waste. Consumers also want brands to show their commitment to environmental rebuilding and restoration. Notably, 49% of global consumers claim to have changed their diet in the last two years to lead a more environmentally friendly lifestyle².

“Many shoppers expect a higher standard from food and beverage companies regarding their environmental practices”

Companies that demonstrate their commitment to sustainability can help give themselves an edge in the marketplace. For example, regenerative agriculture practices can improve soil health and biodiversity with support for the well-being of farmers, ranchers and the general population. Eco-conscious production of animal feed, livestock and aquaculture can help mitigate greenhouse gas emissions and shrink carbon footprints. Additionally, shifting to circular economy infrastructure will help conserve resources, reduce reliance on fossil fuels and promote zero-waste production models.

Social Responsibility in Focus

Consumers are speaking up and strategically spending to challenge companies into practicing more fair treatment of the people and animals involved in every aspect of food production. In fact, nearly 30% of global consumers have actively boycotted a product or brand because of its ethical credentials, and 40% seek out brands that guarantee farmers have been treated in an ethical manner². Social justice in the supply chain also extends to product availability to the end consumer, supporting greater inclusivity and equity with affordable and accessible products. Consumers expect to see positive change that supports farmers’ and workers’ livelihoods, economic stability of communities, optimal nutrition and treatment of animals, improved public health, and enhanced resource management to preserve the ecosystem.

New and rising socio-economic tensions continue to motivate individuals to evaluate and adjust their priorities. With consumers rethinking their values and their expectations of others, companies are pivoting to meet their evolving demands. The brands that see these shifts for the opportunities they present are setting themselves up to be well-positioned to navigate uncertainties in the market. In partnering with a global supplier that recognizes the ethical and environmental impacts of the food chain and prioritizes change for the better, food and beverage companies will be one step closer to reaching the high bar consumers set, now and into the future.

¹Nielsen, What’s In Our Food and On Our Mind

²FMCG Gurus, Route to Sustainability Report, 2022