Food and drink sector accelerates sustainability shift amid consumer and business priorities

Food and drink sector accelerates sustainability shift amid consumer and business priorities

Industry News
sustainability

The food and drink manufacturing industry faces mounting environmental challenges, with leading companies adapting their strategies to balance consumer preferences, regulatory demands, and a pressing need for decarbonisation and resource efficiency in a rapidly evolving landscape.

The visible impacts of climate change, exemplified by extreme weather events worldwide this year, highlight the urgent sustainability challenges facing the food and drink manufacturing sector. With approximately one-third of all human-caused greenhouse gas emissions linked to food production globally, the industry recognises not only its substantial environmental footprint but also its responsibility to contribute to solutions. A raft of commitments and frameworks, from the landmark Paris Agreement to the UK’s 2050 net zero pledge and emerging food strategies, seek to guide the sector towards a sustainable future.

However, consumer priorities reveal a complex landscape. Research reveals that quality and value consistently outweigh sustainability when consumers choose food and drink, both for eating out and in convenience retail. This trend is particularly influenced by economic pressures such as the rising cost of living. Nonetheless, there is notable growth in sustainably-minded consumers within convenience retail, driven partly by increasing demand for local and seasonal products. The preference for local produce is accelerating rapidly, currently nearly matching the consumer inclination towards recyclable packaging, indicating shifting values towards health, provenance, and integrity. Visible sustainability efforts—such as composting food waste, reducing single-use plastics, and offering ethically sourced options—resonate more strongly with consumers than less perceptible measures like renewable energy use, underscoring the importance of clear communication from companies about their sustainability strategies.

From the industry perspective, sustainability is gaining ground but often ranks behind more immediate business concerns. Mental wellbeing among employees has surged to become a higher priority than sustainability within hospitality and retail sectors, reflecting wider societal awareness and challenges. Ethical consumerism, including aspects of sustainability, is increasing in importance but remains secondary to operational issues such as staffing shortages, inflation, and supply chain disruptions. This reality means that many operators view long-term environmental goals as desirable rather than essential, focusing on short-term survival.

Meanwhile, sustainability has become a core, strategic priority for many food and drink manufacturers. Leaders from companies such as Nestlé UK&I, Baker & Baker, Greencore, and Pilgrim’s Europe articulate multifaceted sustainability agendas encompassing net zero emissions targets, regenerative agriculture, circular packaging, ethical sourcing, and human rights. For instance, Nestlé aims to halve its greenhouse gas footprint by 2030 while advancing regenerative farming practices in key cocoa-growing regions. Baker & Baker is working towards a verified net zero target for 2040 with immediate decarbonisation initiatives and regulatory compliance on the horizon. Greencore integrates responsible sourcing and health commitments alongside its environmental goals, while Pilgrim’s Europe emphasises people-centric sustainability, including human rights impact assessments and support for victims of modern slavery.

The industry’s focus on emissions reduction is exemplified by leading initiatives across manufacturing sites. Innocent Drinks’ Rotterdam factory uses electric trucks and robotic automation to enhance efficiency and aims for carbon neutrality by 2028. Nestlé’s Tutbury coffee plant powers part of its operations with energy generated from spent coffee grounds, recycling around 50,000 tonnes annually. Arla incentivises farmers to reduce carbon footprints through its FarmAhead platform, rewarding sustainable practices with financial bonuses. Oakham Ales brews the UK’s first solar-powered beer, cutting grid electricity use and emissions significantly. Suntory GB&I has invested £6 million to upgrade its energy infrastructure to procure 100% renewable electricity, aiming to reduce Scope 1 emissions by 58%, years ahead of target. Similarly, Pilgrim’s Europe incorporates solar power, anaerobic digestion, and ground-source heating to slash emissions and enhance energy resilience.

Transport sustainability remains a challenging domain due to infrastructure limitations for electric vehicles and concerns about the sustainability credentials of biofuels. Trials with battery electric trucks and hydrotreated vegetable oil (HVO) have shown mixed results, affecting reliability and supply chain decisions. Bidfood’s experience reflects the complexities of evaluating alternative fuels at scale, while aerodynamic improvements such as vehicle body kits have demonstrated fuel savings. Eisberg’s use of technology like Google Glass to optimise warehouse operations has reduced transport emissions by improving pallet space utilisation and operational efficiency.

Packaging continues to be an area of consumer focus and industry innovation, though solutions balance environmental desires with product preservation needs. M&S pioneered recyclable paper fibre trays for ready meals, while Suntory’s redesign of Lucozade Energy bottles achieved a 60% reduction in plastic sleeves, saving nearly a thousand tonnes of plastic annually and significant water during production. Coca-Cola Europacific Partners uses 100% recycled plastic bottles for popular products and explores refill and reuse initiatives. Eisberg’s Be Free wine brand offers aluminium cans to reduce shipping emissions and explores lightweight glass bottles to further lower its environmental impact. Meanwhile, Oato, a plant-based milk brand, champions a circular economy with reusable glass milk bottles, stressing reuse as more impactful than simple recycling.

Water stewardship has also featured prominently. Eisberg reduced water usage in equipment cleaning by two-thirds, saving millions of litres annually and substantial costs. PepsiCo exceeded its 2025 water-efficiency target early by implementing advanced technologies to optimise water use at high-risk sites. Nestlé engages in landscape-level water replenishment through projects like river rewiggling, which restores natural water flow patterns to improve biodiversity and flood resilience. Purina Europe launched an Ocean Restoration Programme to rehabilitate marine habitats, contributing to ecosystem health and sustainable sourcing.

Food waste remains a critical issue, with estimates indicating UK food waste accounts for millions of tonnes and substantial greenhouse gas emissions equivalent to nearly five times aviation’s impact globally. Creative projects such as the Chocolonely Foundation’s initiative in Ivory Coast to use the whole cacao fruit, including pulp traditionally discarded, illustrate efforts to rescue food waste and support farmer livelihoods. Raynor Foods employs AI and sensor technology in its S3 Project to minimise overproduction and waste, achieving notable emissions reductions and cost savings. Similarly, partnerships utilising AI for predictive food waste forecasting allow stakeholders to redistribute surplus food efficiently.

Sustainable sourcing of ingredients is increasingly recognised as pivotal. Five Farms Irish Cream Liqueur promotes biodiversity and soil health with clover pastures reducing fertiliser use, while ADM’s re:generations programme partners with tens of thousands of farmers globally to adopt regenerative farming, reducing emissions and sequestering carbon. McCain’s Regen Fries launch brings regenerative agriculture into mainstream consumer products, educating on sustainability practises that boost soil and biodiversity health.

Organisational culture around sustainability is evolving, with companies embedding targets and training into employee roles. Baker & Baker integrates energy-saving awareness across all factory colleagues, while Greencore uses incentive programmes and communications to rally staff around sustainability goals. Nestlé’s reverse mentoring scheme pairs younger sustainability advocates with senior leaders, fostering dialogue and leadership engagement. Suntory combines financial incentives with education initiatives such as a climate-focused month to deepen staff commitment. However, smaller firms like Oato face challenges in resource allocation and measurement capabilities, highlighting the need for tailored support beyond broad regulations.

The UK food and drink sector, contributing £37.3 billion and supporting nearly 500,000 jobs, stands at a pivotal moment. Industry reports underscore the need for practical tools, collaboration, and clear communication to meet rising environmental demands while balancing immediate business pressures. The growing integration of sustainability within strategic priorities signals progress, yet the journey requires ongoing innovation, investment, and cultural shift to drive a resilient, low-carbon food system aligned with consumer expectations and regulatory frameworks.