calming “angry” customers with eco-friendly drinks
Sustainability-conscious consumers may be drawn to organic ingredients, aluminum packaging, and dairy substitutes, according to speakers at a beverage presentation on April 18 at SupplySide East, held at the Meadowlands Exposition Center in Secaucus.
According to Diane K. Ray, vice president of strategic innovation at the Natural Marketing Institute (NMI), located in Harleysville, Pennsylvania, “we see a huge chunk of population that is angry now.” They were previously worried. They are furious now. They claim that chemicals have severely altered the food chain.
83% of consumers between the ages of 40 and 49 who participated in an NMI poll expressed concern about the connection between chemicals in foods and consumer products and an increase in diseases like cancer and heart disease. Other percentages were 69% for those in 50 to 64, 80% for those in 30 to 39, 73% for those over 65, and 63% for those in 18 to 29.
Organic beverage sales can benefit from this issue. In a 2022 NMI survey, 46% of respondents stated they had bought organic beverages—apart from milk—in the previous year. This represents an increase from 41% in 2017. The proportion of consumers who stated they had bought organic dairy milk in the previous year increased from 39% to 46% over the same five years.
According to Ms. Ray, “people think organic is old news.” “It isn’t.”
Another sustainable claim that appears promising is regenerative agriculture.
Regarding the word, Ms. Ray stated, “They (consumers) don’t quite get it yet, but they are getting there.”
Sustainability concerns could affect both the dairy and dairy substitute categories.
Data from Innova Market Insights, Arnhem, The Netherlands, was cited by Candace Smith-Lee, senior beverage scientist at OFI, a division of Singapore-based Olam International, to demonstrate that dairy protein accounted for 34% of all new product launches in the sports nutrition category. According to her, the goods’ removal of preservatives and the addition of novel ingredients like whey protein from grass-fed cows are driving growth.
Pistachios could provide new ideas to the domain of dairy substitutes.
According to Ms. Smith-Lee, “it has a new sustainability story that people are interested in.” It has a striking green hue that gives it an enjoyable experience. Its taste profile is distinct.
The founder of Boulder, Colorado-based Stir Innovation, a consulting firm, Sam Kressler, discussed how packaging choices affect sustainability.
Packaging made of plastic and Tetra Pak is recycled more frequently, but it all relies on local laws, he said. In certain situations, plastic and Tetra Pak might be required. He said that some high-temperature procedures might cause glass packing to burst.
Glass packaging is recyclable and seen as superior by consumers, but Mr. Kressler said that because glass is heavier, it has a greater carbon footprint.
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He remarked, “You are transporting more.” “To transport it from plant A to plant B, you are utilizing more fossil fuels.”
Another disadvantage could be cost. According to Mr. Kressler, he worked with a fledgling beverage company that switched from glass to aluminum and saved roughly 60¢ per unit.
According to Mr. Kressler, “I like aluminum.” It may be easily recycled. It’s not heavy. It is reasonably priced. The way that consumers view aluminum products has changed, making them feel as though they are purchasing luxury goods.
The inability to see inside the product is a drawback.
According to Mr. Kressler, the sector must consider how innovation will affect all parties involved in the supply chain, including farmers, workers at food and beverage companies, and consumers.
He asked, “What are the ripples that we are creating throughout the marketplace through our decisions?”