Costs of climate threat are growing

A new study released by the Rockefeller Foundation reports $900 billion annually in added costs to the U.S. food system from agriculture derived greenhouse gas (GHG) and biodiversity losses as a result of land use transformation, animal grazing impacts and nitrogen pollution.

• One major source of environmental impact is the 10 billion farm animals we harvest each year for food and the related damage from methane, water depletion and soil erosion from crops raised to feed livestock.

The U.S. has the most affordable, abundant food supply on earth requiring only about 5% of disposable income from families. According to the Rockefeller report, Americans spend approximately $1.1 trillion on food each year. However, that figure doesn’t take into account the unintended consequences of a food system that in many respects works against planet health and also the wellbeing of people when you consider the accelerated growth rates in obesity, diabetes and heart disease.

Time for a reality check as we talk about the future of food

Our current food system is designed to deliver three things consistently:

• Volume of food
• Safety from food-borne illnesses
• Inexpensive calories

However, we need a food system that is also aligned to help protect the environment and support human health.

An encouraging promise about the future of food is now emerging as vast sums of investment capital race to support the development of new food technologies. From 2015 to 2020 more than $4 billion has been invested in alt. protein technologies. These new food solutions may help reduce climate threat while offering a healthier nutritional profile for cleaner proteins in center-of-plate dishes.

How we eat, what we eat and where food comes is changing

Advancements in bioengineering have authored a tsunami of new food tech businesses pioneering ways to create foods that are not dependent on legacy ingredient supply chains. What’s coming is more food made from cultures, microbes and fermentation technologies.

Will consumers suddenly stop eating animal meat? Not likely. That said will substantial transfers of market share move to these new products not linked to a cow, lamb, pig or chicken? Highly likely; assuming the eating experience and taste hit the mark as an analog to the conventional version. Equally so for non-fish seafood.

Plant-based offers a hint at the transformation

According to Statista, total sales of plant-based meat and dairy products in 2020 reached an astounding $7 billion; of which ‘dairy-free dairy’ led the pack at $2.5 billion in sales of soy, almond, pea, rice and oat milks. An entire generation of milk users is growing up with a different definition of what milk is and how it tastes.

Plant-based meat, the fastest growing segment, hit stride at $1.4 billion in sales volume. That’s a whopping 45.3% jump over 2019 sales results. With new plant-based chicken nugget brands now simultaneously launching in food service channels, the likelihood of more trial and retail movement for non-meat meats is nearly a foregone conclusion. Equally impressive is the surge in plant-based cheese products, up 42.5% over 2019 to $270 million in sales.

• The plant-based meat takeover has been quick. The trends suggest a potentially rapid uptake on the proposition for foods perceived to be healthier (less saturated fat than animal meat) and less taxing on the environment.

Industrial agriculture and meat production produce 24% of total greenhouse gases, the second leading contributor to climate threat behind fossil fuels. Meat production alone accounts for 65%of the world’s nitrous oxide, a gas with a global-warming impact 296 times greater per pound than carbon dioxide. What’s more, total emissions from agriculture are forecasted to increase 80% by 2050due to a significant growth in demand for meat and dairy products.

The development of new food solutions is really a higher-stakes proposition. Climate friendlier food tech may indeed help tamp down the surge in global warming that spawns wildfires, droughts, superstorms and other weather anomalies.  An unprecedented 115-degree heat wave in the Pacific Northwest came dangerously close to upending the regions’ agricultural eco-system.

Eating our way into climate chaos?

What happens when consumers begin to see there’s a relationship between food choices and climate impacts? Consumer attitudes and behaviors have shifted in recent years to focus on issues and more values-based considerations. Purchase behavior has already swung from a historic focus on taste, price and convenience to new concerns about transparency and visibility to the supply chain alongside the number one consumer issue, health and wellness.

The food industry will be obligated to pay attention to these transformational changes and look more fully at climate readiness, sustainability policies and commitments.

Questions food and beverage companies must address:

• What is the true carbon footprint of products, taking into consideration all aspects of supply chain and manufacturing?

• How does this trickle down to hidden costs in bio-diversity impacts such as land use disruption, over-consumption of water resources (it takes 1,500 gallons of water to produce one 16 oz. steak) and harmful farming practices that destroy the ability of cropland to sequester carbon in the soil.

• How will companies verify and validate their sustainability policies and commitments in a transparent and trustworthy way?

• What aspects of sustainability performance and outcomes do core customers care about the most?

• How should sustainability bona fides best be conveyed to a company’s key audiences and stakeholders?

For our part, Emergent sees a food culture transformation on the horizon that will change what consumers believe about where food should come from, how it is made and what they should buy.

To help companies better assess and explore the right path to sustainable practices and climate readiness, we have created the Brand Sustainability Solution report as a guide to the key issues and direction on strategies to solve.

You can download your complimentary copy here.

To secure a snapshot of where your climate sustainability readiness stands today, take the five-minute free Brand Sustainability Readiness survey here.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Mainstream consumers aligning for greater good

Sustainability concerns could not be a hotter topic right now. The temperature continues to rise as consumers learn there’s a connection between their purchase decisions and climate impacts. According to Hartman Group Sustainability 2021 trend research report, the issue was already gaining significant momentum prior to the pandemic. It is virtually on fire now as environmental concerns have become attached to purchase motivations for mainstream consumers — a new form of climate-conscious consumption.

• To help you determine where your company is on the sustainability and climate readiness continuum, we’ve created a simple self-assessment tool you can access, offered later in this article.

Hartman characterizes this as a form of ‘secular spirituality’ – a moral system that operates as a guide to decision making now focused on the greater good. Consumer sentiment on environmental and social wellbeing therefore should not be underestimated by brand marketers.

Helping drive this cultural sea change is increased media coverage tracing the impact of food and beverage consumption to the environment, personal health, safety and planetary security. This is occurring in parallel with a potent cocktail of climate anxiety and concerns over a legacy of regressive public environmental policies, that now serves to motivate consumer desire for real change.

We’re witnessing a causal link emerge in consumer sentiments between everyday life (I bought a hamburger) and bigger problems ahead (it took 600 gallons of water, increasingly scarce land resources, toxic methane released into the air, and two years to make that hamburger). The growing imperative is urgent action needed to stem the tide and get ahead of global warming impacts on life before our environment reaches a point of no return.

What’s telling is the move from fringe to the center. At one time so called “green” concerns sat on the periphery – important to a narrow audience of climate advocates. Now, this has migrated into the mainstream, likely because people are increasingly confronted with global warming impacts right in their front yard – Seattle at 116 degrees in June? Absolutely historic.

As evidence of this transition: Hartman found that 51% of consumers say they purchase sustainable products specifically because they are better for the environment – that’s up 17 points from 2017 to 2019.

Progressive brands see this and will get ahead of it

What does sustainability and climate readiness look like? How should brands behave in an environment when consumers want to make pound-for-pound comparisons and seek transparency on just how climate positive a brand is?

Carbon footprint is about to become a defining tool in assessing environmental faithfulness. Yet there is no recognized umbrella benchmark for how this should be measured and calculated. Until industry associations coalesce around a standard set of rules for sustainability science and data, its likely to feel a bit like the wild west, with third-party category expert climate sheriffs holding court.

Emergent isn’t standing on the sidelines. We’ve already weighed in on the climate challenge with our Brand Sustainability Solution program. The first-of-its-kind suite of services integrates scientific carbon footprint assessment with consumer insight research to determine which areas of climate positive behavior are most important to a brand’s user base; and marries the outcomes with a suite of marketing communications tools intended to help a company convey its sustainability story and climate policy bona fides.

Our consumer insight research partner, Brand Experience Group, has already completed a study that makes a clear case for the business benefits of strengthening sustainability commitments – and found evidence that failure to do so will create a long-term drag on brand growth and profits.

Shift in responsibility for sustainability action to companies

For years the consensus among consumers was environmental solutions were an individual choice and responsibility. Now that perception has moved and people largely see companies as responsible for creating measurable change, mainly because they are viewed as key actors in the sustainability problem.

Hartman’s research charted the shift on who bears responsibility for sustainability and climate mitigation policies to large corporations. They are on top at 86% followed by government at 71% and individuals now at 58% – down from 73% a few years ago.

This is a moment in time when companies have an opportunity to take a leadership position on a rapidly developing cultural change that will impact their brand value proposition. Five key directional questions to consider:

1. Have you conducted an independent, third-party Carbon Footprint to better understand climate impacts and to inform mitigation efforts?

2. Have you conducted consumer insight research to better understand how climate and sustainability concerns impact your core users’ behaviors and product choices?

3. Do you have a clear understanding of which sustainability issues (e.g. climate change, pollution of the oceans, animal welfare) are most motivating for your users?

4. Do you have a clear understanding of where your Sustainability efforts rank among competitors in your relevant categories (ahead of or lagging behind)?

5. Are you confident your brands’ sustainability narratives enhance consumer preference and choice?

These and other questions form the guideposts of sustainability and climate readiness. If you’re wondering how your company stacks up on progressive sustainability programs and policies, you can take our simple online assessment questionnaire. In just five minutes we can help you secure a snapshot of where your organization sits today on climate readiness.

Use this link to take the confidential online sustainability readiness questionnaire. Once submitted we will come back to you with a customized outcome report, complete with readiness scoring. Both the questionnaire and follow-up results report are complimentary.

It’s better to know where you are now and be proactive rather than wait for the sustainability boom to drop and find yourself in the unenviable place of reacting and playing catch-up.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

How to successfully address sustainability demands for food, beverage and lifestyle brands and retailers

Food, beverage and lifestyle categories are ground zero in a major culture shift now underway. It will redefine the meaning of sustainability and recast the value proposition for nearly every brand and retailer in the business.

The rapid arrival of a new consumer culture shift demands greater accountability on climate impact and verifiable solutions to greenhouse gas threats. New research confirms not only is this a priority for consumers on the path to purchase, it also has a direct impact on food, beverage and lifestyle brand and retailer growth outcomes. 

Are you prepared – ready to embrace the sea change and reap the rewards from operating consistently with consumer attitude and preference shifts on sustainability?

Download our new report on the first Brand Sustainability Solution. Learn what the future looks like and how to solve the challenges ahead for your brand and business.

FREE DOWNLOAD HERE OF THE BRAND SUSTAINABILITY REPORT

Looking for more food for thought? Subscribe to the Emerging Trends Report.