NaturALL Bottle Alliance: first 100% bio-based and recyclable bottle

NaturALL Bottle Alliance: first 100% bio-based and recyclable bottle

Danone and Nestlé Waters, the world’s two largest bottled water companies, have joined forces with Origin Materials, a startup based in Sacramento, California, to form the NaturALL Bottle Alliance. Together, the three partners aim to develop and launch at commercial scale a PET plastic bottle made from bio-based material (i.e. 100% sustainable and renewable resources). The project uses biomass feedstocks, such as previously used cardboard and sawdust, so it does not divert resources or land from food production for human or animal consumption. The technology represents a scientific breakthrough for the sector, and the Alliance aims to make it available to the entire food and beverage industry.

Teaming up to accelerate development of 100% bio-based bottles

For decades, both Nestlé Waters and Danone have been committed to sustainable business practices, notably by continuously improving their environmental performances and promoting the development of a circular economy. A large part of these efforts has focused on developing innovative packaging solutions that are recyclable and made with renewable resources, as well as the promotion of recycling. After identifying the unique approach of Origin Materials separately, the two companies decided to team up to accelerate development of this promising technology.

“Our goal is to establish a circular economy for packaging by sourcing sustainable materials and creating a second life for all plastics,” declared Frederic Jouin, head of R&D for plastic materials at Danone. “We believe it’s possible to replace traditional fossil materials with bio-based packaging materials. By teaming up and bringing together our complementary expertise and resources, the Alliance can move faster in developing 100% renewable and recyclable PET plastic at commercial scale.”

Danone and Nestlé Waters are providing expertise and teams, as well as financial support, to help Origin Materials make this technology available to the entire food and beverage industry in record time.

Nestle-and-Danone-teaming-on-bio-based-PET-bottles This next-generation PET will be as light in weight, transparent, recyclable and protective of the product as today’s PET, while being better for the planet. The exclusive use of renewable feedstocks which do not divert resources or land from food production is the Alliance’s main focus area. The R&D will focus initially on cardboard, sawdust and wood chips but other biomass materials, such as rice hulls, straw and agricultural residue could be explored.
“Current technology on the market makes it possible to have 30% bio-PET,” noted John Bissell, Chief Executive Officer of Origin Materials. “Our breakthrough technology aims to reach 100% bio-based bottles at commercial scale. With the help of our Alliance partners, Origin Materials will be able to scale up a technology which has already been proven at the pilot level.”

A packaging revolution for all

The NaturALL Bottle Alliance partners consider that everyone should benefit from this new material, so the technology will be accessible for the entire beverage industry. This unique approach demonstrates the allies’ commitment to open innovation and sustainable business.

“It’s incredible to think that, in the near future, the industry will be able to use a renewably sourced packaging material, which does not compete with food production and contributes to a better planet,” commented Klaus Hartwig, Head of R&D for Nestlé Waters. “It therefore made perfect sense for us to join forces through this Alliance to develop this innovative technology in a large scale and in the shortest time period possible. This is an exciting journey and we are proud to be part of it.”

A packaging revolution in record time

Origin Materials has already produced samples of 80% bio-based PET in its pilot plant in Sacramento. Construction of a “pioneer plant” will begin in 2017, with production of the first samples of 60+% bio-based PET to start in 2018. The initial volume goal for this first step is to bring 5,000 metric tons of bio-based PET to the market. Thanks to their complementary skills and shared vision, the NaturALL Bottle Alliance aims to develop the process for producing at least 75% bio-based PET plastic bottles at commercial scale as early as in 2020, scaling up to 95% in 2022. The partners will continue to conduct research to increase the level of bio-based content, with the objective of reaching 100%.

Source: Medium.com / Nestleusa.com

Best practices to remain sustainable in the Food industry

Best practices to remain sustainable in the Food industry

Best practices to remain sustainable in the Food Industry

Best Practices with Edible Insects Novel Food Law


 

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Exporting food has an environmental cost so is it really impossible to remain sustainable while consuming it? What are the best practices then ?

My last interview with Risteco’s co-funder Isabelle Lacourt and Thanaphum Muang-Ieam, a Thai edible insects entrepreneur were edifying.

Environmental cost of international export, especially between different continents seem fundamentally not sustainable.

Eating bananas from Australia would generate about 1.4 ton of CO2 since planes pollute 3 times more than cars. Moreover, that would deprive local farmers of jobs. Furthermore, consuming exotic food would promote an irresponsible consumption way.

 So, should we stop eating bananas ?

On the 26th of october a conference involving the European Commission and the National Bureau of Agricultural Commodity and Food Standards (ACFS) evokating edible insects future legislation took place in Bangkok. This novel food law should enter into force by 2018 to make edible insects business legal into the European Union. According to the regulatory expert of the Public Federal Service of Public Health in Brussels, edible insects from Asia and other continents might be legalized if they respect specific conditions.

However, we can expect these Asiatic insects to be sold at a lower price than the european one. As a result, we could expect those bugs to be the main consumers choice in the coming years.

best practices sustainable

Then are edible insects still going to be a sustainable food?

best practices sustainable edible insect

Exporting is not always a bad thing” Isabelle Lacourt, cofounder of Ritseco says . It actually depends on the conditions the products have been made through. For instance, lambs from New Zealand actually revealed that exported food was sometimes healthier than the french ones.

In Thailand firms dealing with edible insects prepare to get into the European Market. They plan to produce this future food by huge amount. Is that wrong?

“Producing at a high scale is necessary in order to be profitable otherwise it is too expensive” Thanaphum Muang-Ieam co-funder of Global Bugs, answers.

 

Therefore the best practices to remain sustainable are:

  1. Increase your production to get into global markets

  2. Reducing your crickets breeding space

  3. Develop a local farmer learning and support model

  4. Anticipate future sustainable development hurdles

best practices sustainable” It is wrong to make huge firms based on a vertical integration process. We need to separate the different supply chain activities to reach a better quality food »Dr. Yupa Hanboonsong said.

« Mass production is never conducive to biodiversity » Isabelle Lacourt added. Indeed, single supplier, concentration & production cost’ permanent reduction work are not sustainable.

Promoting sustainable food is a great opportunity to provide billions of people with high quality food standards. It should not be seen only as a business opportunity. If business is the key point of any sustainable activities, long-term effects of any opportunist approach might lead to a poor food quality.

Discover my three months edible insects’ investigation and best practices here.

Probiotics when medicine meet beauty

Probiotics when medicine meet beauty

Probiotics are live bacteria that are good for your health, especially your digestive system. We usually think of bacteria as something that causes diseases. But your body is full of bacteria, both good and bad. Probiotics are often called “good” or “helpful” bacteria because they help keep your healthy.

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Probitics are gradually shaping the beauty business

While the term ‘probiotic’ is well established in food, where probiotics are considered as live microorganisms able to grow and form a colony that can have a beneficial effect, in cosmetics this is still not very widespread. However, the beauty industry is also considering the fact that our bodies, and particularly our skin, would profit from better nourishment. The beauty industry would also profit, of course, of this new trend and the opportunity is estimated to become a £5.58bn global industry by 2020

There is no doubt that probiotics are trendy and proof of this is the success of two brands, the South African ESSE and the North American Mother Dirt

ESSE Probiotics

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 According to Trevor Steyn, the CEO of ESSE, the company had a turnover of US$3.5 million in 2015 and is growing at an impressive 300% per annum. Currently ESSE markets two oil-based products – Sensitive serum and Probiotic serum (€70 to €150) – containing live microorganisms that have been inactivated by freeze-drying and stabilised by encapsulation. The probiotic bacteria are activated when they come in contact with skin moisture. As a company, ESSE will remain focused on skin care but through its other brands would look to explore opportunities in key markets such as toothpaste, hair care and cosmeceuticals to treat skin issues such as acne, rosacea and eczema.

Mother Dirt

 

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The Mother Dirt adventure began with the launch of their AO+ Mist in June 2014, the first product for the skin made with live bacteria. According to Jasmine Aganovic, the company CEO “Mother Dirt was created to rethink health. It’s the first time anyone has created products to nurture the good bacteria of the skin. Our AO+ Mist is now followed up with other products that have been formulated, screened and tested for their friendliness to the skin biome, now the he company is currently exploring the potential of the bacteria in the treatment of eczema, rosacea, and other inflammatory skin disorders.

Challenges and next steps

Products containing fermented and probiotic ingredients are mainly orientated to the premium beauty market. Keeping probiotics alive through manufacturing and distribution is challenging. Products need to be sold under aseptic conditions and it is necessary also to protect the bacteria from excessive light, moisture heat or cold. This causes several operational challenges and constrains the type of packaging that can be used. ESSE uses a recyclable double glass unit that contains a bag in which the product is contained, while Mother Dirt uses pharmaceutical grade plastic packaging which is fully recyclable

Therefore there is no doubt that ‘probiotic’ ingredients are becoming a revenue generator for many manufacturers of cosmetic products. However, taking into account the recent EU-wide ban on using the word ‘probiotic’ on food packaging, ingredient manufacturers need to be aware of the effect of potential regulatory changes that might come in place in the medium to long term and affect the use of probiotics in cosmetic formulations Although future remains unknown, topical probiotic products are now on the rise thanks to the trend for wellness in the beauty industry.

Discover now how beautech devices will shape the beauty industry ! 

The ‘Ick’ Factor which Takes People Out of Edible Insects

The ‘Ick’ Factor which Takes People Out of Edible Insects

There’s a lot of hype around edible insects. Insects are presented since years as an healthy and sustainable alternative to conventional protein sources to face the upcoming challenges and get the work done by 2050. Nonetheless it didn’t drill out as expected.

2050 is the last milestone to get into edible insects!

population 2050In 2050, we will likely be close to 10 billion people on earth. To cope with this huge increase in mouth to feed, we will need to double or triple our food production. On a limited planet surface which suffers many consequences due to a massive production, overfished oceans and global warming, our food production and consumption patterns will not be sustainable anymore.

But how to convince people that climate is warming when it has never been so cold in autumn and how to convince people that billions of people will starve whereas there has never been such obeses in the human history? Obviously, statistical analysis accurately demonstrate these issues through a frightening fluctuation in climate as well as in malnutrition – there’s about 1 billion people affected by famine – and health diseases. Currently, we can see the effects of our production methods on health and the environment.  To cope with food problems today and tomorrow, what we eat, produce and our relation with food should be reconsidered. Few years ago was introduced a new idea to solve this global issue, throughout a very good source of protein: the insects!

Your ancester were entomophagists…will you?

edibleinsects488903155Behind the barbarian word entomophagist is hidden the story of our food diet. Edible insects have long been a part of the human diet and are commonly consumed as a food source in many regions of the world. According to the United Nations Food and Agriculture Organization (FAO), two billion people currently consume insects as part of their diets. Insects may be an increasingly important source of protein because of the rising cost of animal protein, food insecurity, environmental pressures, climate change, and population growth.  In 2008, in a first report FAO (Food and Agriculture Organization) hypothesized insects as a possible solution for human and animal food. Insect consumption by humans is called “eat bugs.” Insects, arthropods branch as shellfish, account for over half the animal species of the world with over 1 million species identified at present. Nevertheless FAO seemed to revized its judgment about insects solution while the word INSECTS does not even appear in the official FAO workplans for the years 2016/17 !

Clear Nutritional and gustative interests

The large variety of insects species has different nutritional values but we can remember that, in general, insects are a great source of protein which equals meat. In addition, some species contain high levels of omega-3, zinc, iron and magnesium.  This large number of species also provides us a whole range of different flavors. They can approach both the hazelnut and pistachio as fish or even potatoes. One can thus use insects in sweet or savory preparations.  Within a rigorous livestock intended for human consumption and after preparation and proper cooking, their use presents no greater risk than other meat.

‘Demand for edible insects in countries in Europe is on the rise, primarily owing to factors such as low risk of disease – as transmission of zoonotic diseases (diseases transmitted from animals to humans) such as H1N1 (bird flu) and BSE (mad cow disease) is low with regard to insects – and higher protein and nutrients and micronutrients such as copper, iron, magnesium, manganese, phosphorus, selenium and zinc, and fatty acids in comparison to meat and fish products.’According to the Global Market Study on Edible Insects, by Persistence Market Research.

Environmental interests

insectvsbeef

Insects are cold blooded animals, so they do not need to use the energy from their diets to maintain a constant body temperature. Add to this their frugal asset. It requires nearly 10 times less feed to produce 1 kilogram of insect protein compared to 1 kilogram of beef protein.  Besides, insects solution requires less space, less water and produces less pollutants and waste. Insects have also a double advantage in food industry. It can be used both for human food to animal food!

At the end of the day, why don’t we adopt them if they’re so good for us and for the planet?

The Stakeholders value

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For the producer

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The breeding of insects requires little space, little power (10Kg of vegetable produce 9Kg of insects, against 1Kg of beef for instance) and low water consumption.

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For the consumer

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This is a product with high protein content. Consumers looking for a neutral offer emission of greenhouse gases will be delighted with this commodity.

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For the distributor

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It is a modern solution and offers differentiation. To be fully distributed, it remains to discover if volumes will follow.

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The underlying ‘ick’ factors out of eating insects

The first obstacle is public acceptance! Even if we consume, without realizing, about 500 grams of insects each year (legal authorization to 0.1% insects in wheat flour or used as a red food coloring) much of us are not ready to consume voluntarily due to their unjustified bad reputation and the ‘ick’ factor.

Second, it is necessary to create an industrial-scale automated production system. This would allow continuous production with quality and optimum food safety to meet the strong market demand.

Finally, a legal and regulatory environment will oversee the production and placement on the market. At present, There are legal uncertainties in Europe around this point.

The edible insect market

edible-insects-market

In terms of value, the global edible insects market is anticipated to expand at a CAGR of 6.1% during the forecast period and is expected to account for US$ 722.9 million by 2024 end. Orthoptera (cricket, grasshopper, and locusts) segment is projected to register a CAGR of 8.1% over the forecast period, driven by rising demand for cricket granola bars, cricket crackers, cricket cookies, and cricket chocolates. Of the various edible insect type products, the beetle’s segment is estimated to account for approximately 30.8% share of the global market share in 2016, and caterpillars segment is estimated to account for 17.9% share. According to the Global Market Study on Edible Insects, by Persistence Market Research.

The insect most commercialised:

On the basis of insect type, the global edible insect market is segmented into beetles, caterpillars, hymenoptera (wasps, bees, and ants), orthoptera (cricket, grasshopper, and locusts), true bugs, and others (termites, dragonflies, flies, and etc.) segments. The most commonly and commercially consumed product type of edible insect is as a whole. The as a whole segment accounted for 65.3% share of the global market in 2015. Insects are majorly consumed as a whole, which is usually raw. As an ingredient, edible insects are consumed majorly as snacks and baked products. A major trend in the global edible insects market is increasing applications of edible insects in protein bars and shakes, increasing the availability of flavored food products using edible insect proteins, availability of mixed insect pack and usage as a coloring agent in food products. According to the Global Market Study on Edible Insects, by Persistence Market Research.

Three startup surfing on insect wave

1. Exo Cricket Flour Protein Bar

exo cricketFor now, Exo’s crickets are raised on a diet of organic grains and filtered water and sourced from farms in the U.S. and Canada that have cropped up in recent years to supply an increased demand for insects raised for human consumption. The market for meal replacement products, including shakes and bars, expanded to $3.2 billion last year, from $2.1 billion in 2006, according to IBISWorld.

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2. Six Foods

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Six Foods make foods with insects. Their first product is Chirps chips, a chips made with cricket flour that is 3x the protein and 40% less fat than the leading tortilla chip. Their Chirps are non-GMO, gluten/soy/dairy-free, and all-natural, and each serving of chips contains as much protein as an egg. [mks_separator style=”blank” height=”2″]

3. Critter Bitters

critter-bitters-coasterWho knew the missing secret ingredient for handcrafted cocktail is bugs? Toasted crickets, to be exact, says co-founder Julia Plevin, a grad student at New York’s School of Visual Arts. Critter Bitters reinvents bitter for cocktails while using insect as a primary ingredient.

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So, although you may be motivated to eat insect products because of their healthiness or sustainability, a range of competing factors will ultimately affect whether insect products actually end up on your plate. To expand the global consumption of insects, food industry stakeholders will need to provide a better focus for both industrial and commercial attention.
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Source: Dutch university of Wageningen, lsa-conso, Persistence Market Research

Byproduct and coproduct : How they could reduce food waste

Byproduct and coproduct : How they could reduce food waste

About a third of the food we eat goes to waste, amounting to nearly 1.3 billion tons per year globally.

Representing an estimated cost of nearly $1 trillion. The situation is ethically and economically unacceptable, and pressure is mounting for the food sector to tackle the issue. While retailers consider waste as a fact of life, the truth is that waste is often the result of choices being made. By managing the right balance between waste, on-shelf product freshness and availability, retailers can and should control waste. They can also drive efficiency and improve profits while increasing customer’s satisfaction with fresh categories, according to a recent study. However, eliminating waste entirely is not an option anymore. Even if achieving zero waste would be unrealistic; it would require a dramatic reduction in the availability of products and place, and it will also limit the consumers’ choices. That said, the opportunity to cut waste is very significant. If pursued wisely and it could result in a huge upside for producers, retailers and consumers. That is why some solutions like byproduct are conceivables.

byproduct

Coproduct/byproduct: solutions to reduce the waste

What is a coproduct? What does it mean? According to the Business Dictionary “Product manufactured along with a different product, in a process in which both are required in the production of another product. In comparison, a by-product is usually an undesirable product”.

In other words, a coproduct is a material, intentional and unavoidable, created during the same manufacturing process and at the same time as the main product. The final product and coproduct must both respect specifications and technical characteristics. At the end of the process, each is capable of being used directly for a particular purpose.

On the other hand, the definition of a byproduct is: “Output other than the principal product(s) of an industrial process, such as sawdust or woodchips generated in processing lumber. Unlike joint-products, byproducts have low value in comparison with the principal product(s) and may be discarded or sold either in their original state, or after further processing.”
A byproduct is a secondary product derived from a manufacturing process or chemical reaction.

Resources with a high value

USA – Coproduct: Seeds with ethanol

When processors use the starch in corn to produce ethanol, they turn about one-third of their processed corn volume into coproducts that contain protein, fat and fiber.

As ethanol production surged between 2000 and 2010, the supply of distillers grains and other ethanol coproducts soared. Feed manufacturers and animal producers reformulated rations, which had relied heavily on corn and soybean meal, to use the ingredients. Exports of dried distillers grains with soluble (DDGS) jumped from 1 million tons in 2006 to more than 11 million tons in 2014, says the U.S. Grains Council.

coproduct

Byproduct: Vegetables transforming into pet food

In the sector of fruits & vegetables, coproduct recovery is also running for a few years. The tomato industry, 2nd most important worldwide production after the potato, generates a lot of recyclable waste: pomace, peels, and seeds. Their main way of recovery is the drying and / or silage to reduce their water content. Thus they can be used in the feeding of ruminants and pigs, but also in composting, spreading and industrial application after extraction of nutritionally noble ingredients (lycopene and carotenoids). Generally the fruits & vegetables industry recovered 3/4 of their animal to the pet food.

byproduct

Byproduct: Cotton becomes packaging or wall paper

Some parts of the cotton plant that would otherwise be considered trash have novel uses. Ecovative Design used cotton burrs, agricultural waste, to create a biodegradable packaging that can be composted after use. The Hydromulch which helps control soil erosion is also made from by-products of the ginning process. Cotton byproducts are in everything from ice cream to wall paper, from hot dog casings to baseballs—not to mention lots of things we use at home, like cotton swabs, wipes, and even disposable diapers.

byproduct

Examples of byproduct and coproduct valuation are everywhere (See also ugly fruits). This process is primordial for the companies to increase their turnover because it reduces significantly the looses. Moreover it is really important for the environment and the footprint. Consumers have to take care of it and realize that the product recovery is the future. 

Sources: Business Dictionary / Food-development / Brinknews / Iowafarmertoday / cottontoday

FMCG brands can win with sustainability

FMCG brands can win with sustainability

1. Scenario

We are living in a world affected by many problems: temperatures are rising, sanitation is not guaranteed everywhere, rising cost of major resources (energy, gas, oil and water) and, last but not least, the global population is growing (7.6 billions in 2020, Forum for the future, 2011).

We are also living in a world where technologies are rising, allowing people to check everything about brands and products. From  missions and prices to rates, reviews and strategies consumers can, nowadays, get access to all information they need to better evaluate their purchases. In emerging countries, which are currently representing most part of the total sales of the top FMCG companies worldwide, Generation Z[1] and Millennials[2] are the most attractive segment, because they are showing the best potential since (Nielsen, 2015a):

  1. they are more willing to use new technologies and to buy online;
  2. they are facing to the job market, starting to form families with a high purchase power
  3. they are showing a more sustainable behavior

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Sum up :

Consumers (especially Millennials) are increasignly demanding sustainable brands worldwide

• FMCG companies should also take into account differences among brands, categories, regions, and segments

• Both an integrated marketing communication and claims can boost sales [/mks_pullquote]

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2. What’s sustainability in FMCG

There are many definitions of the term “sustainability”. Regardless the differences among industries, according to KPMG, “sustainability” could be defined as “the adoption of business strategies that meet the needs of the enterprise and its stakeholders today while sustaining  the resources, both human and natural, that will be needed in the future.” In the FMCG industry actions and initiatives are varying and change depending on companies and categories. For example Wine and Spirits companies are improving their actions to avoid the abuse and misuse of alchool. Pernod Ricard implemented many inititatives to promote responsible drinking (e.g. with campaigns against drink-driving and avoiding the distribution of products containing a high amount of stimulants)
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Consuming goods companies as Unilever are acting in numerous ways. Unilever, for example, is consistently reducing the environmental footprint of its products, across different brands and categories but it is also undertaking different marketing actions directly claiming both the sustainable action on pack and with a traditional marketing communication offline and online (e.g. Domestos and Persil[3]).

 

domestos-bleach

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Among soft drinks players, Coca Cola and PepsiCo are increasingly investing and promoting healthier products (e.g. Pepsi Max and CocaCola Zero don’t contain sugar) to fight obesity and being overweight.

A Pepsi Max can with no sugar

3. Consumers increasingly care about sustainability worldwide

A research made by Nielsen (2015b) which polled, with an online survey, 30.000 consumers in 60 countries provides interesting insights:

  • Global respondents are increasingly demanding for sustainable brands: 66% of respondents, across different countries and regions, are willing to pay extra money for brands and products with a positive social and environmental impact.

TABLE 1: THE DEMAND FOR SUSTAINABLE BRANDS IS GROWING (Source: Data elaborated from Nielsen, 2015b)

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  • Differences across regions: consumers in emerging regions (Latin America, Asia, Middle East and Africa) are easier to influence and more willing to pay a premium price for sustainable brands than peers in more developed regions as Europe and North America (on average 23% and 29 % more), because they appear more aware and concerned of the needs in their local areas and communities. On the other hand, consumers in developed countries are more complicated to convince, since they are not still considering sustainability as a key differentiator for a brand.
  • Differences across ages: Millennials (75%) seem to be the ones more attracted by sustainable brands, followed by Generation Z (72%) and Baby Boomers[4] (51%). Reasons for these results are the following: Millennials and Gen Z are the most educated generation, and are born and lived with great environment issues (climate and recycling concerns, sanitation issues, etc.). For this reason they are more willing to take care about sustainability issues.
  • Brand trust (62 %), health and wellness benefits (59%) and fresh, natural and organic ingredients (57%) are the main attributes demanded by consumers

4. An excellent marketing effort can boost sales 

Despite according to Techingrocery even claims on pack and a visible and clear pack on shelf must be consider a form of communication (sustained by marketing efforts), Nielsen (2015b) decided to split claims from marketing initiatives dividing between marketing efforts contained in the value proposition will be physically sold (offline and/or online) and all marketing initiatives sorrounding the value proposition launched (in other terms all investments in marketing communications excluding the product available on shelf). This choice is logic since in this way they were able to track performances of different initiatives and see what’s the return on sales.

In general, results show how brands are only communicating through an integrated marketing communication, without claiming sustainability and social content on pack, are getting a higher value share (65% among brands measured), but it is also true that brands only claim on pack show the higher percentage of growth (7.2%), while brands are doing both (marketing communication and claims)

Does it mean that brands are only doing claims can’t get high value share? Does only marketing communication drive sales growth? The answer is of course no. Findings showed by Nielsen also measured how most brands are only currently investing in marketing communication (66 %), while only 29 % of them is both claiming and communicating and just 2 % are only claiming. Thus, it is likely that brands are only communicating are getting a higher value share, because they are more than others are doing something else. However, the 7.2% sales growth for brands are only claiming demonstrates how consumers are also attracted by a clear and direct message on pack. Indeed, the report also mentions how there is a significant gap between consumers said to buy items that claims a lower environmental impact (10%) and consumers would like to buy them. This means a lack of offer in the market and white spaces FMCG brands might cover. For example, another research made shows how 51% of Millennials said to check “the product packaging for sustainability claims before making a purchase” and only 31% of sales came from brands provided those claims

5. Numerous opportunities for FMCG companies

  1. Sustainability is increasingly influencing the consumer behaviour across different ages, countries and regions worldwide;
  2. New technologies are rising worldwide, allowing consumers to know everything about a brand and a company everywhere and in every moment
  3. Sustainability can increase the brand equity
  4. Sustainability can reduce costs and risks, increasing profitability
  5. A huge white spaces still need to be covered

6. Management Implications

  • Focus on the most attractive and the right segments: findings show how, in general, Millennials and Generation Z (the youngest existing generations) are the biggest and the most attractive segments especially in emerging regions. This doesn’t mean that, unfortunately, all of them demand for sustainable products or consider “sustainable” what is “sustainable” for a company. At the same time it is also possible to find demand in other generations (e.g. Generation X or Baby Boomers);
  • Take the right action according to the brand, the product and the category you are operating in: not all products and categories need the same claims, although the social commitment and a better environmental impact appear as the main attributes required by consumers willing to pay more. For instance in the household cleaning and laundry categories might be ok claiming to reduce the amount of a specific material on pack (e.g. the Persil example showed above about the reduction of plastic on pack), but claiming biodegradable, for example, couldn’t be the right claim. Firstly, because consumers who buy capsules are aware that capsules are not environmentally-friendly; secondly because consumers need to clean clothes or bedlines need something strong and, in general, there is the high perception across consumers that what it is eco-friendly (in this case bio) might not be effective to clean what they need. This doesn’t mean that these brands might not support social issues (e.g. Domestos is supporting a better hygiene and sanitation while Persil is promoting education). On the other hand, for food and beverages, since it is growing the percentage of consumers concerned about health, claiming something regarding bio, natural and organic might be the right choice.
  • Take into account differences across regions: consumers in less developed countries are more influenced by sustainability than peers in developed countries. This implies different actions and investments to undertake according to different areas. It is up to brands and companies identyfing the right target.
  • Take advantage of an integrated marketing communication but do not forget claims on pack: in general FMCG brands should take advantage of different media (both traditional and digital) since all consumers across different ages are influenced by sustainability. Even clear and visible claims on pack can help brands to increase sales. Indeed, do not forget that the in-store impulse purchase is still driving sales in the FMCG industry.
  • Cover white spaces: the huge gap between consumers said to buy sustainable products and consumers would like is high. This means that there is a gap in the offer that many brands can cover in coming months and years.
  • Brands social commitment and enviromental footprint reduction might drive sales: FMCG brands might get a higher competitive advantage increasing their social commitment and improving their environmental impact, since these are the main attributes required by consumers willing to pay more.

(more…)