Consumers emphasise sustainability credentials when purchasing food and beverages, prompting protein supplement manufacturers to bank on ESG metrics. Sustainable packaging, environmental preservation, clean label claims, transparency, ethics and compliance and health have become paramount among sustainability-minded consumers. Plant-based and whey-proteins have garnered popularity among Gen Z and millennials, a trend likely to drive the footprint of sustainable food.
Whey protein has become prevalent among athletes and customers who warrant protein supplements in their diet. Manufacturers, consumers, media and influencers are counting on whey protein powders to foster sustainable food production. Decision-makers seek a crystal clear picture of how protein products will impact the environment, community and governance.
In September 2022, the Good Food Institute (GFI) and FAIRR rolled out an ESG reporting framework for the alternative protein industry. At a time when the world is gearing up for climate accountability, disclosure of the ESG framework could underscore business practices.
The soaring popularity of protein supplements, including powders, bars, and shakes, has prompted stakeholders to prioritise their environmental footprint. Global watchdogs, such as the Intergovernmental Panel on Climate Change (IPCC), have vouched for sustainable meat production to decarbonise food production and keep up with the demand for protein. In August 2022, an Oxford study deduced that meat alternatives had less than a tenth of the environmental impact of meat-based equivalents.
Forward-looking companies have furthered their efforts to underpin their environmental profile. 2022 Glanbia upgraded its scope one and two emissions reduction targets, aiming for 100 percent recyclable, reusable or compostable packaging by 2030. It has also set a 50 percent reduction in emissions from operations and a 25 percent reduction in dairy emissions intensity by 2030. Establishing environmental goals and transitioning to a low-carbon economy will open opportunities in the global landscape.
A sustainable future demands product safety and quality, employee health and well-being, diversity and inclusion, responsible nutrition, animal welfare and fair pricing. In August 2022, Harvard Health Publishing noted that protein powders could contain added sugars and calories. During the year, Clean Label Project claimed in a report that protein powders may contain heavy metals, pesticides or other contaminants linked to cancer or other health issues. With vegans, athletes and adults banking on protein powders to supplement their diets, industry leaders are expected to emphasise consumers' health and safety to bolster the brand position.
Decision-makers have shown an inclination to attract and retain diverse employees to bolster their ESG performance. For instance, Abbott is gearing up to achieve gender balance with at least 45 percent female representation across STEM and global management roles. The company will offer one million job and development opportunities by 2030. Commitment to diverse perspectives and ideas will drive innovation and help attain Sustainability plans.
Investors, consumers, companies and governments are making informed decisions with good corporate governance practices, regulations, compliance with laws, transparency and board diversity, among others. To illustrate, in 2022, Glanbia updated its anti-bribery and corruption policy to reinforce fraud prevention procedures. Females represent 55.5 percent of the independent non-executive directors. The company prompted in its Annual Report and Financial Statements 2022. Meanwhile, Abbott mentioned in its DEI Report 2021 that people from underrepresented groups held one-third of the leadership roles, while women accounted for 40 percent of the global management positions in 2021.
ESG reporting is expected to be pronounced as governments can mandate climate reporting by 2025. The EU Commission proposed a Corporate Sustainability Reporting Directive. Kroger updated its ESG action plan to underscore its strategy and sustainable packaging. ESG disclosure and claims gained momentum in 2023 and could be prevalent.
As the industry forays into ESG reporting, incumbent players are slated to inject funds into organic and inorganic strategies that can help them transition their protein portfolios to meet sustainability goals. In 2023, NOW Foods announced shifting its supplement bottles to 100 percent post-consumer recycled (PCR) resin. The step will enable the natural products company to reuse recycled packaging materials and minimise its carbon footprint. These dynamics suggest the global protein supplements market could depict an 8.5 percent CAGR through 2030.
