Using Sustainable Ingredients in Food and Drinks: Opportunities in local sourcing, fairtrade and organic

Date: September 22, 2009
Pages: 116
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Hard Copy Mail Delivery, CD-ROM Mail Delivery

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Using Sustainable Ingredients in Food and Drinks: Opportunities in local sourcing, fairtrade and organic
Sustainability issues and sustainable products are becoming more than a marketing fad. Consumers are actively seeking out responsibly sourced products and avoiding products marketed by manufacturers that are known for irresponsible behavior. For many consumers, the presence of a Fairtrade or similar seal is becoming a purchasing point.

This report looks into the market for ethical ingredients and products labeled with sustainability-related seals and describes trends and synergies with other claims. It highlights the sustainability initiatives of the top 20 food and drinks ingredients manufacturers. Ingredients are profiled with regards to sustainable sourcing. The report offers guidance for manufacturers wishing to embark on sustainability initiatives and profiles the main non-governmental organizations involved in them.

Key benefits of this report

  • Understand the market for sustainable products and how “green” labelling increases the chances for success.
  • Be in a position to advise on steps necessary for your company to “go green”, and on the benefits of such an initiative.
  • Learn about non-governmental organizations promoting sustainability initiatives, and the benefits of your company joining them.
  • Understand consumer motivations for purchasing “green” products.
  • Understand the regulatory background for “green” labelling.

  • Key market issues examined

  • Consumers are basing purchasing decisions increasingly on how "green" a product is; manufacturers can use that by engaging in "green" iniatives in the manufacture of their products and saying so on the labels.
  • Even though their share is largest (76,7%), the growth of organically produced ingredients is slowing, as ethical consumers are demanding more than just agrochemical-free farming.
  • Omega-3 fatty acid sourcing carries the potential of overharvesting of fish. Krill and algae are alternative sources that are being explored.
  • The increased need for palm oil worldwide is threatening rainforest areas. This has led to the formation of a special NGO engaged in the promotion for sustainable palm oil, the Roundtable on Sustainable Palm Oil (RSPO).
  • The growing demographic of informed consumers tends to be ethically-minded and aware of the link between health and food. This will drive sustainability-related product claims in the future.

  • Key findings from this report

    Consumers are increasingly basing purchasing decisions on how “green” a product and its manufacturer is.

    In most markets, Fairtrade products show a double-digit growth, with the US market being the largest market globally.

    Fairtrade beverages sales are generally larger than fairtrade food sales, which is due to the high percentage of fairtrade teas.

    Key questions answered by this report

    How important is sustainability as a trend?
    What are the market figures for sustainability-related claims?
    How does manufacturer behavior influence consumer behavior in terms of sustainability initiatives?
    What are the sustainability initiatives of the top 20 food and drinks manufacturers?
    What can manufacturers do to “go green”?
    Which sustainability-related organizations exist?
    What is the regulatory situation regarding sustainability-related labeling?
    Using Sustainable Ingredients in Food and Drinks
    Executive Summary 10
    Introduction 10
    The sustainable ingredients market 11
    Case studies: Ingredients 12
    Case studies: Companies 13
    Conclusions 14


    Summary 16
    Introduction 16
    Sustainable cultivation methods 18
    Wildcrafting 18
    Cultivation 19
    Sustainably sourced ingredients 20
    Environmentally sustainable sourcing 20
    Method of production 22
    Energy (carbon footprint) 24
    Local sourcing 25
    Conflicting consumer trends 27
    Green products 28
    Fairtrade 29
    Organic products 30
    Packaging 31
    Cause marketing 32
    Regulatory background 33
    Wildcrafting 33
    Organic 33
    Labeling 34
    Greenwashing 35


    Summary 38
    Introduction 38
    Fairtrade 40
    By region 40
    By category 42
    Organic food and beverage markets 44
    Organic food 44


    Summary 48
    Introduction 48
    Sustainable ingredients in food and drinks products 49
    By search terms (growth and weighted growth) 50
    Share of sustainable ingredients 51
    By key trend 53
    By claim 54
    Key ingredients 57
    Omega-3 57
    Alternate sustainable source: Marine algae 58
    Alternate sustainable source: Krill 58
    Coffee 59
    Shade-grown coffee 59
    Organic coffee 60
    Cocoa 60
    Cinnamon 62
    Palm Oil 62
    Key applications 63
    Example: Natural Sea Pink Salmon 64
    Example: Cocoa Camino Organic Chocolate Chips 64


    Summary 68
    Introduction 68
    Major ingredient and finished product manufacturers and sustainability 69
    Kerry Group plc 71
    Tate & Lyle 73
    DSM 74
    CSM 76
    Corn Products International 77
    Ajinomoto 78
    Danisco 79
    Südzucker 80
    BASF 81
    Archer Daniels Midland 82
    Cargill 83
    Royal Cosun Group 84
    Givaudan 85
    Associated British Food 86
    McCormick & Company 87
    Arla Foods 88
    International Flavors and Fragrances 89
    DuPont 90
    Imperial Chemical Industries (Akzo Nobel) 91
    Aarhuskarlshamn AB 92
    Organizations 94
    Fairtrade Foundation 94
    Sustainable Agriculture Initiative Platform 95
    Sustainable Agriculture Network 97
    Roundtable on Sustainable Palm Oil 98
    Rainforest Alliance 99
    The Organic Trade Association 100
    Ethical Consumer Research Association Ltd 101
    Ethical Products Organisation 101


    Summary 104
    Introduction 104
    Importance of various sustainability strategies for the food and drinks manufacturer 105
    Raw materials sourcing (cultivation, wildcrafting) 106
    Processing 107
    Packaging 107
    Transportation 108
    Company attitudes towards sustainability 109
    Sustainability as a consumer choice 109
    The informed consumer 111
    Regulatory issues 111
    Future outlook 112
    Index 115


    Figure 1.1: The Protected Harvest label 19
    Figure 1.2: Sustainable methods of production 23
    Figure 1.3: A carbon footprint label 25
    Figure 1.4: Climate change chocolate by Bloomsberry & Co and Earth Water 32
    Figure 2.5: Sustainable ingredients by key trend 39
    Figure 2.6: Fairtrade overall product sales by country 2008 41
    Figure 2.7: Estimated sales of organic food and drink, top five markets ($m), 2008 46
    Figure 3.8: Sustainable ingredients by trend 54
    Figure 3.9: Sustainable ingredients by claim 56
    Figure 3.10: Natural Seal Pink Salmon 64
    Figure 3.11: Cocoa Camino Organic Chocolate Chips 65
    Figure 4.12: Sustainability initiatives by Top 20 ingredients manufacturers 70
    Figure 4.13: The Fairtrade Mark 95
    Figure 4.14: Rainforest Alliance certification logo 99
    Figure 5.15: Sustainability and product life cycle 106


    Table 2.1: Fairtrade overall product sales by country, 2007-2008 ($m) 40
    Table 2.2: Fair-trade sales by country and category, 2002, 2007, 2012 ($m) 43
    Table 2.3: Estimated sales of organic food and drinks, top five markets ($m), 2008 45
    Table 3.4: Food and drinks products by claim 51
    Table 3.5: Sustainable ingredients by key trend 53
    Table 3.6: Sustainable ingredients share by claim 55

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