Sustainability in the Global Food and Beverage Industry 2011–2012 Market Trends and Opportunities, Forecast of Budgets and Profitability, Food and Bev
25 Oct 2011 • by Natalie Aster
London – According to the report “Sustainability in the Global Food and Beverage Industry 2011–2012: Market Trends and Opportunities, Profitability and Budget Forecasts, Food and Beverage Industry Procurement and Marketing Initiatives” by iCD Research the top three business functions where sustainability measures have been most implemented are ‘production process’, ‘procurement process’ and ‘new product development’. Food and drink manufacturing respondents recognize that if sustainable initiatives are implemented in production and procurement functions, it leads to positive impacts on both society and the environment. Implementation of sustainable procurement practices also helps to enhance a company’s overall brand image.
Sustainability in Business Functions: Buyers, 2011–2012
From the survey results, it is clear that for most respondents, sustainability is an important priority in the food and beverage industry, necessary to attract environmentally conscious customers, compete for major contracts and comply with governmental and international legislation. This is reflected by the fact that, on average, respondents expect to allocate 25% of their procurement budgets to sustainability initiatives over the next 12 months and anticipate an average cost saving of 8% of organizational expenditure as a result of these initiatives. In terms of supplier selection, the most important factors identified by respondents were reduction of energy consumption, effective minimization of waste and use of recyclable or reusable product components.
Sustainability in the Global Food and Beverage Industry 2011–2012: Market Trends and Opportunities, Profitability and Budget Forecasts, Food and Beverage Industry Procurement and Marketing Initiatives
Published: October, 2011
Price: US$ 2,000.00
Recently, consumers in advanced and developing economies have become more health conscious and have high expectations of the products they consume. Such health consciousness in consumers has encouraged food and drinks manufacturers to further explore and understand sustainable ways to manufacture products, and to use methods which not only protect the health and well being of consumers but also have a less harmful impact on the environment.
It is very important that the food and drinks industry reduces CO2 emissions through energy efficiency, modern agriculture and farming techniques, and increased use of recycled materials in packaging. Air transport is a significant contributor to carbon footprints, and the industry is currently attempting to employ alternate and efficient means of transport in order to reduce carbon emissions. Policies designed to reduce CO2 emissions should focus on the local sourcing of food where appropriate, an initiative that can be promoted through consumer awareness campaigns, public procurement, support for local food initiatives and the strengthening of food and drinks industry suppliers.
The process of new product development is another important business function where sustainability initiatives are being implemented. Operational strategies such as reduction of waste, fuel, reuse of materials and reduction in water usage are some of the initiatives adopted during the development of new products. Buyer respondents agree that increased innovation throughout a product’s life cycle and effective supply chain management is an efficient way to decrease the environmental and social impact of a given product or service.
More information can be found in the report “Sustainability in the Global Food and Beverage Industry 2011–2012: Market Trends and Opportunities, Profitability and Budget Forecasts, Food and Beverage Industry Procurement and Marketing Initiatives” by iCD Research.
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