How can brands meet consumer demand for sustainable and healthy nutrition?

Consumers want ‘healthier’ food and drink. According to a consumer survey conducted by the Food Standards Agency (FSA), 87% of consumers say they think it’s important to eat healthily, and 63% want to make changes to their diet to make it healthier.
At the same time, consumers are looking for more sustainable lifestyles.The same FSA survey showed that 73% of consumers think it’s important to buy foods that have a lower impact on the environment.
Behind both of these trends is the rise of flexible veganism. Plant-based dairy products are a category that has surged in recent years due to flexible vegan dietary options.
According to Future Market Insights, the plant-based milk market is “likely to grow significantly” at a compound annual growth rate of 8.8% between 2021 and 2031, as consumers increasingly forgo traditional dairy in favor of soy, oat, or almond-based alternatives. How are major brands responding to consumers wanting non-dairy products that are both nutritious and sustainable? What challenges do plant-based milk manufacturers face in addressing human and planetary health? How do they plan to evolve in the face of changing consumer demands?
Oat Milk If consumers are giving up traditional dairy products for health, environmental and ethical reasons, deciding which plant-based alternative to use is not so easy. Soy milk is considered a classic milk alternative and is the most popular plant-based product on the market. However, in North America, almond milk has been the most popular plant-based milk on the market in recent years. Not only that, but among the many plant-based milks, oat milk is in a strong position and has now become an important category in Europe and the United States, leading the market. In the UK, for example, according to IRI Infoscan data, the retail sales of oat milk in the UK reached $181 million in 2020, a year-on-year increase of 98%, establishing oat milk as the largest dairy alternative beverage.
The Challenge.
Ensuring plant-based dairy products meet the health needs of people and the planet is no easy task. Plant-based alternatives often naturally contain lower levels of protein and calcium compared to conventional milk. In terms of environmental sustainability, not all plant-based milk varieties are created equal: almonds require more water than any other dairy alternative, with more than 1,500 liters of water needed to produce one liter of milk alternative. Plant-based beverage manufacturers must consider the sustainability of their products. While it may be better for the environment to reduce the amount of dairy and meat products that everyone eats and drinks, these products are not all produced in the same way with the same carbon footprint, and therefore can have a potentially negative impact on the environment. The biggest challenge for most plant-based milk manufacturers is to ensure that their entire supply and production chain minimizes their carbon footprint.
Meeting changing consumer demands Another challenge is how to react as consumer demands change. We know that many consumers are reducing their intake of meat and dairy products in favor of plant-based alternatives. Also most importantly, consumers are becoming increasingly involved in the fight against food waste. Unilever, for example, wants to halve food waste from its direct operations by 2025, and it is currently working with suppliers and customers to reduce waste throughout the food chain.
Consumer demand for sustainable packaging is also increasing. Today, most consumers prioritize sustainable packaging and products when making purchases. According to Reportlinker, the global sustainable food packaging market is expected to grow from USD 196.26 billion in 2021 to USD 211.56 billion by 2022, at a CAGR of 7.8%, and the market is projected to reach USD 280.1 billion by 2026, growing at a CAGR of 7.3% during the period. Manufacturers are forced to rethink the materials used in packaging, driven by the twin forces of the Global Sustainable Development Goals (GSDGs). According to Presence research, the use of recyclable containers across the packaging supply chain has increased by 23% from last year, with a 9% increase in aseptic cartons and a 2% increase in glass. It is expected that in the future of the food market, the packaging of products will largely influence consumer purchasing decisions, with products built around “0-waste” packaging gaining popularity.