(Finance) – The sustainability is becoming a buzzword in many economic sectors, but it is in the food sector that it takes on vital importance. According to estimates by How many100% of the interviewed managers working in the food marketing sector have noticed changes in consumer purchasing habits. According to what has been observed, in fact, customers are increasingly interested in sustainable products, declaring that they are also willing to spend more to obtain them. This growing consumer awareness, together with regulatory pressures and climate change, is pushing companies to have to review their strategies from a sustainability perspective.
The latest study Recipe for Transformation published by Quantis, BCG Company with a scientific approach and leadership in the field of sustainability, aims to offer a detailed overview of the challenges and opportunities that the sector faces food & beverage must address to achieve a sustainable transition. The research, conducted in collaboration with Sapio Research, involved over 600 managers and executives of companies in the food sector (both in the United States and in Europe).
A note of uncertainty emerges immediately, in fact, only 30% of the managers interviewed say they are confident of whether their company can achieve its sustainability goals by 2030. A fact that highlights the uncertainty that still pervades many companies on this topic.
“We are thrilled that in Italy, according to the sample interviewed, the sustainability has been built “from the bottom up” up to nowthanks to a widespread transversal activation within the company: half of the national sample in fact declared that they could count on sustainability KPIs for over a year, against 38% on a global scale and also thanks to the engagement of the value chain” comment Davide Tonon, Director of Quantis Italia. “It is precisely on this point that I would like to delve deeper, starting from my observatory on the sector in our country, where we are increasingly seeing the spread of C-level bonuses linked to decarbonisation KPIs: a decisive and successful lever”.
Choosing priorities for a sustainable future
To be able to operate this transformation by the end of the decade, it is necessary for companies to be able to prioritize their actions, identifying key areas on which to intervene.
The 24% of Italian respondents and 19% of foreign respondents believe it is a priority to start an evaluation of their product portfolio to understand which ones (including recipes and packaging) to promote, redesign or eliminate, and how. In particular, 67% of Italian managers (and 62% globally) see packaging as one of the main points of intervention.
This attention reflects the urgency of reduce the environmental impact of plastic waste and to promote more ecological solutions. An attention also fueled by the need to reduce food waste, indicated by 53% of those interviewed in Italy and 57% of those abroad as a priority.
The main challenges of the sector
Among the most significant challenges to be faced, according to 37% of Italians and 42% of global respondents, the complexity that characterizes the supply chain stands out. The investments needed to support this transformation also remain an open issue: on average, in the various departments, the share of the annual budget allocated to investments aimed at reducing environmental impacts corresponds to just 12.5% on a global scale. Elements that underline the need to continue investing in innovative technologies and practices to address operational complexities and improve transparency and efficiency across the supply chain.
Cross-functional involvement and collaboration
Even an active involvement of the leadership and collaboration between different company functions are essential to start this change. 34% of Italian respondents and 32% of those globally underline how the creation of a climate of collaboration and sharing are key elements to create an environment in which more sustainable practices are able to take root. Furthermore, 45% of respondents (both at an Italian and global level) believe that regulations are among the main drivers for starting a responsible transition.
Sustainability as a strategic opportunity
A sustainable transformation in the food & beverage sector is also a strategic opportunity for companies that want to remain competitive and resilient in the face of global challenges. The data collected shows a strong convergence between Italian and international managers on the importance of rigorous regulations, corporate culture and cost savings as key drivers for change. With priorities such as product portfolio redesign, regenerative agriculture and the adoption of plant-based foods (which 32% of Italian respondents say are essential), Italy proves to be at the forefront of this journey.
“We see clearly and We appreciate the commitment and results of the F&B sector in the direction of alignment with planetary boundaries. The next step will have to be in the transition from a silo approach to integrating sustainability into the choices and daily operations of all corporate functions” he concludes David Tonon. “Forecasts indicate the risk for companies in the food sector of lose up to 26% of their value if they don’t act quicklyeffectively and efficiently. Much remains to be done: in order for more significant budgets to be dedicated to sustainability and for a transformation with a measurable and lasting impact to be achieved, collaboration with leadership across departments and with strategic partners and commitment to the three areas of sustainable redesign of the product portfolio, regenerative agriculture and plant-based agriculture continue to be necessary”.
(Photo: Lukas Budimaier on Unsplash)