Sustainability Confirmed as a Key Ingredient for Food and Beverage Consumers

Globally, 93% of consumers view sustainability as an important part of their lives and a reflection of their personal values. This increase of 6% since 2019 is confirmed in our Global Consumer Sustainability Survey 2024, showing sustainability as an increasingly important purchase criterion. With the food and beverage (F&B) sector feeling this shift in attitudes particularly keenly, this Executive Insights examines how changing eating and shopping habits, increasing environmental concerns, and a newfound willingness to pay a sustainability premium are driving change across the sector.

Concerns about sustainability span categories, geographies and demographics

Our survey results show that sustainability matters to the vast majority of consumers across geographies. Concern is increasing, reflecting the growing awareness and prioritisation of sustainable practices. Of the consumers we polled, 93% told us that sustainability is important to them – a 6% increase in the developed markets of the US, the UK and Australia since our survey in 2019. Age is no barrier to concerns about sustainability, with sentiments shared across age groups, though Gen Z and Millennials report the most interest in the topic. L.E.K.’s Global Consumer Sustainability Survey 2024 covers this trend in depth, with detailed sector-agnostic information.

Significant changes to the menu globally

A significant 68% of consumers globally report altering their F&B consumption habits over the past 12 months for sustainability reasons. These changes include reduced meat and dairy consumption, with 34% of the consumers we surveyed making this change (see Figure 1). A switch to more locally sourced foods is another popular sustainable choice, with 32% making this shift. An overall reduction in the consumption of ultra-processed foods is another noteworthy trend driven by consumers searching for healthier eating options.

Consumers are adopting increasingly sustainable F&B shopping and disposal habits

More than half of the consumers in our survey have adopted more sustainable practices for both food shopping and waste disposal. Environmental concerns, personal health and cost-saving measures are combining to effect a significant change in consumer habits, from a desire to reduce food waste to choosing products with sustainable packaging to the use of reusable shopping bags.  

A drive for personal health was cited by 62% of people as the catalyst for changes in their consumption habits. Environmental concerns figured strongly, too, with almost 90% telling us that this had altered both their shopping and disposal habits.

Economic pressures also play their part in reducing food waste, with 64% of consumers globally making cost savings by purchasing less food, and a notable 68% saving leftovers.

Convenience makes a difference, and our survey indicates that, on average, consumers tend to be more actively engaged in sustainable activities that are easy to do. Composting and the correct recycling of packaging are now common practices, and although participation varies significantly by country, these activities have grown by 15% and 29%, respectively, over the past year (see Figures 2 and 3).

Increasing numbers of consumers are willing to pay for sustainability… within reason

Around half of consumers globally say they are happy to pay more for sustainable F&B products, but the premiums they are willing to pay tend to be moderate and are influenced by economic conditions and disposable income.

The theoretical price premium for sustainable F&B products varies significantly by product category, from 8% for pet food to 32% for packaged food and beverages. But with current inflationary pressures causing a contraction in volume across most F&B categories, this range is likely to reflect a strong intent among consumers rather than an actual increase in consumer spending for F&B companies (see Figure 4).

Packaging and labelling play a major role in signalling sustainability

Consumers are looking to product packaging to help them assess the sustainability credentials of food and beverages. While labels such as ‘sustainable packaging’, ‘locally sourced’ and ‘organic’ are major drivers globally for choosing a sustainable product, some regional and demographic variations are worth noting. For instance, Boomers in developed markets prioritise ‘locally sourced’ while Millennials opt for ‘organic’. Sustainable packaging is important, with 64% of people looking for labels indicating this, and 57% focusing on ‘locally sourced’ labels (see Figure 5).

Geography has an impact, too, and we found that for more than 60% of consumers in France, Germany and the US, ‘locally sourced’ labels are a major proof point of sustainability for F&B products, while a similar percentage of consumers in Brazil, India and China plump for ‘organic’ labels as their key sustainability indicator.

Statistics like these combine to highlight how crucial it is for sustainable brands to take a regional approach.

What does the shift towards sustainability mean for F&B businesses and brands?

The rise of sustainability has major implications for any business or brand in the F&B sector. Understanding how to interpret and act on the trends is key. We have listed our top five implications below, but with every company, category and market being unique, we are always ready to discuss in detail the sustainability strategy that’s right for your business.

1. Keep expanding sustainable product offerings

Sustainability isn’t going away. Recent setbacks in alternative meat growth and a slowdown in organic food adoption should not overshadow the rapid evolution of consumer dietary habits. Across geographies, consumers are choosing less meat, fewer ultra-processed foods, and more organic and locally sourced produce. Health is a priority, and healthier and more sustainable alternatives to staple foods remain on-trend and heavily sought after, particularly by younger consumer cohorts.

2. Use packaging to deliver straightforward and impactful sustainability messages

Packaging is a crucial tool for conveying sustainability to consumers and should be a key focus in the marketing mix. Pay particular attention to high-impact labels and clear messaging to cut through the confusing array of sustainability claims, stand out in crowded marketplaces and build trust with consumers. Ensure you know what your consumers are looking for and that your packaging prominently features the most influential sustainability labels.  

3. Be prepared to tailor your approach

Consumers in different geographies and from different demographics prioritise different sustainability factors. Customise marketing messages and sourcing strategies to reflect regional preferences – e.g. ‘locally sourced’ in developed countries versus ‘organic’ in developing regions. Taking a targeted approach lets you resonate more effectively with regional consumer preferences and drive higher engagement and satisfaction among diverse market segments.

4. Deliver smart value and affordable sustainability 

Cost matters, and consumers are willing to pay only a moderate premium for sustainable products. This makes optimising costs and considering product re-engineering focused on key sustainability attributes crucial. Additionally, developing affordable sustainable options will allow those impacted by inflation and reduced disposable income to continue consuming responsibly. Upcycling food waste into new products, using eco-friendly packaging, implementing energy-efficient production technologies, forming sustainable sourcing partnerships and offering subscription models for reusable containers can all contribute to delivering smart value while maintaining affordability.

5. Facilitate sustainable practices

The onus is on F&B companies to embrace and support consumer shifts towards sustainability by simplifying sustainable actions. Changes to consider include implementing user-friendly packaging and clear educational initiatives to guide consumers on reducing waste and recycling effectively. This approach has the potential to strengthen brand reputation and promote a lasting culture of sustainability among both consumers and employees.

How L.E.K. can help you make sustainability part of your F&B strategy

Our insights and data paint a compelling picture of evolving consumer sustainability preferences. Health and environmental concerns combine to make this particularly relevant to the global F&B sector. Staying in touch with consumer sentiment and developing products that reflect changing needs are vital for every F&B business and brand. Our specialist teams help companies across the consumer landscape develop the strategies they need to preserve and grow their businesses. To find out more about our work, please contact us. 

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