Written by Barak Bar-Cohen, Founder and CEO, Sojo Industries
What are Gen Z’s main motivations for supporting more sustainable food and beverage products?
Gen Z faces challenges that previous generations did not.
As Gen Z consumers enter the workforce, they face a completely different landscape than their parents and grandparents. For example, they grew up seeing first-hand the effects of climate change and global pandemics, which has made sustainability a higher priority for many. In 2023, Gen Z consumers will face new challenges such as inflation, rising costs of living, and the influence of social media, all of which will push this generation to make value-based spending decisions.
It’s no surprise that Gen Z is using their newfound purchasing power in environmentally and economically responsible ways. They grew up in a world where every purchase helps protect the planet and saves money for basic necessities.
Even better, brands and manufacturers are also taking notice. Gen Z consumers now have more options to “shop for their values” and more ways for consumers to call out brands that aren’t prioritizing sustainability. This could further motivate Gen Z to demand that food and beverage companies adopt more climate-friendly practices in their supply chains.
What impact does the food and beverage manufacturing process have on the environment?
The manufacturing stages of the food and beverage supply chain can have a significant impact on the environment. For example, relying on non-renewable energy sources for heating, cooling, refrigeration, and other energy-intensive activities can increase carbon emissions.
Similarly, this step in the process often generates large amounts of waste, from packaging materials to processing by-products. Excessive packaging, especially with non-recyclable or non-biodegradable materials, can further exacerbate this problem and lead to increased waste generation and pollution.
Without proper disposal, food and beverage manufacturers may resort to landfilling or incineration, processes that have harmful effects on the environment. In fact, landfills often natural byproducts It is composed of methane and carbon dioxide, both powerful greenhouse gases (GHGs) that accelerate the climate crisis.
Considering the impact that manufacturing has on the environment, it is important that food and beverage brands make climate-responsible decisions to reduce their environmental footprint.
What are the potential barriers food and beverage companies face to achieving sustainability?
Most major food and beverage companies manage their own supply chains, from raw material procurement to manufacturing, warehousing, and distribution. But most emerging brands don’t.
This makes it difficult for most new brands to influence something they cannot control. For example, if a manufacturer relies on fossil fuels to power its warehouses, this will contribute to the product’s overall carbon footprint, and the brand will have little say in these decisions. Therefore, challenges will be faced in implementing sustainable practices throughout the supply chain.
However, for large brands that manage their own supply chains, sustainable practices remain widely underserved due to traditional systems and financial return models that emphasize healthy ROI even in tough economic times, regardless of environmental costs. Not accepted. But if brands fail to invest in their future, they have an opportunity to impress a growing customer base, including Gen Z and Alpha customers who expect brands to offer sustainable food and beverage products. You will miss out.
One of the challenges for both new and legacy brands is the fact that food and beverage supply chains are highly fragmented. The brand works with multiple suppliers, manufacturers and distributors from production to retail. This makes it difficult to track a product’s environmental impact while assessing quality control and food safety. Food and beverage products often travel long distances, making it even more difficult for brands to reduce their environmental footprint.
What strategies can food and beverage manufacturers adopt to increase sustainable practices in their operations?
Beyond strategy, companies need to make actionable commitments to climate-responsible decision-making in every aspect of their business.
When companies have to choose between non-recyclable plastic and packaging made from 100% recycled materials, they should use environmentally friendly materials and save money elsewhere to justify their decision. By finding out, you can choose to walk the talk. Companies can also choose to work with vendors who actively prioritize sustainability in their business operations, which can help reduce a company’s carbon footprint. For food and beverage companies across manufacturing and supply chains, if a company wants to be recognized as a truly green brand, it must practice sustainability across all processes, from sourcing to packaging to distribution. .
Business leaders can also put this into practice by showcasing their own sustainable options and supporting their employees to make more sustainable choices in their daily lives. For example, companies can encourage employees to practice a green lifestyle by installing free charging stations for electric vehicles in the office or offering recycling bins or drop-off programs. These are often seen as extra steps or more expensive options, but if everyone does their part, they can make a big difference.
How can technology help improve sustainability efforts in food and beverage manufacturing?
Technology is one of the most prominent drivers for companies wanting to improve their sustainability efforts. In many scenarios, automation and robotics reduce dependence on humans and not only save energy, but also the large amount of resources and waste that humans produce. Software platforms can reduce resource waste and increase business sustainability by optimizing routes and analyzing weather patterns to better plan and implement more efficient manufacturing methods. Masu.
Real-time, data-driven insights generated by artificial intelligence are also redefining sustainability efforts for food and beverage decision makers. This valuable data not only helps businesses improve their own operations, but also helps consumers by enabling businesses to predict and meet buyers’ environmental expectations. bring profit.
How are Gen Z’s changing preferences likely to impact future practices and innovations in the food and beverage industry?
The tastes of younger generations, including Generation Z, are permeating the food and beverage industry. As the focus on healthy options increases, probiotics, plant-based and organic preference products are already being incorporated into food and beverage innovations.
The beverage category, which includes non-alcoholic beverages, has emerged as a key growth area in 2023, with Gen Z being the most abstinent generation.
While younger generations are certainly influencing the market, we are even seeing older consumers change their purchasing habits as a result, and sustainability is one of those areas. Gen Z adopts more sustainable behaviors than any other age group, but their actions are inspiring other age groups, like Millennials, to make more sustainable decisions. Whether it’s decisions rooted in health, sustainability, price or quality, consumers are influencing food and beverage brands to make innovative changes. By catering to these preferences, companies can not only gain the trust of younger generations, but also stay in close alignment with the market and continue to improve profits.
Barak Bar-Cohen is the founder and CEO of . Sojo Industryis an industrial automation company that leverages robotics, mobility and modularity to provide efficient packaging and assembly solutions for the food and beverage industry. As the former COO of Bai Brands, Bar-Cohen has more than 25 years of experience building and growing businesses in the communications, digital media, and beverage industries in the United States and abroad.
