Sustainability in motion 2021 - Kerry proprietary research The gap between consumer intent and action is closing rapidly, and across all ...
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Sustainability in motion 2021 – Kerry proprietary research The gap between consumer intent and action is closing rapidly, and across all consumer archetypes, the importance of sustainability is irrefutable.
Contents
3 About the report
4 Executive summary
6 Sustainability – market overview
7 Sustainability maturity
8 Strongest associations with sustainability
10 Sustainability adoption curve and consumer archetypes
12 Sustainability adoption curve
13 Category focus areas and expectations
14 How can food and drink manufacturers help consumers
meet their sustainability needs?
15 Kerry technology and toolbox
17 About Kerry
18 Methodology
19 Sources and citations
© Kerry 2021 | 2
About the report
In 2021, Kerry surveyed over It shows how rapidly the topic is evolving,
with ‘sustainability’ now encompassing
14,000 consumers across a far broader range of consumer
18 countries and three expectations and associations than
previously seen.
continents to understand
their views on sustainability. The research has also revealed a consistent
‘Sustainability Adoption Curve’ amongst consumers
This comprehensive study globally. Different consumer cohorts are at different
points on this curve, but the overall journey is
demystifies the concept remarkably consistent, globally*. The research
references a Kantar sustainability estimate that
of sustainability from the shows a $382 billion opportunity for sustainable
consumer’s perspective. fast-moving consumer goods, based on the
spending power of the one in two global consumers
who are already sustainability-conscious.
Providing a sustainable food chain
for nearly half of the world’s consumers
requires big picture thinking and
joined-up action. Technology will
play a critical role, as will a shared
commitment to action from producers
to consumers, field to fork.
As the leading global expert in taste and nutrition,
Kerry creates a crucial link between manufacturer
capabilities and consumer expectations. Kerry is
firmly at the forefront of technological innovation
within food and beverages, a critical foundation
for building a more sustainable future food (and
beverages) chain, on a global basis.
*
Kerry surveyed over 14,000 consumers across 18 countries in
North America, Europe, and Latin America including UK, France,
Sweden, Germany, Netherlands, Belgium, Luxembourg, Canada,
Spain, USA, Italy, Poland, Brazil, Mexico, Guatemala, Argentina,
Russia and Columbia.
ABOUT THE REPORT © Kerry 2021 | 3
Executive summary
Sustainability is more than just a trend
The definition of sustainability
is evolving, with more and more
emphasis on health and nutrition,
and sustainability as it relates
49%
of global consumers
to an individual, instead of the consider sustainability
more traditional associations of when choosing food
and beverages1
sustainability and its impact on
the environment.
When it comes to the food and beverage
industry in particular, an individual’s
considerations regarding sustainable food and
drinks may encompass any of the following:
3 in 4
global consumers
• Environmental concerns expect companies to
(zero emissions, food waste, animal welfare… invest in sustainability2
as well as conventional packaging expectations),
• Social needs
(community aid, economic stability),
• Industrial expectations
(food production practices, ingredient sourcing),
• Personal goals
(sustainable health and nutrition).
EXECUTIVE SUMMARY © Kerry 2021 | 4
Executive summary
Global consumers follow a consistent
EMERGING
Sustainability Adoption Curve:
Personal health
KERRY PROPRIETARY and nutrition
INSIGHTS
Food waste
EMERGING
Clean label claims
Reducing food, such as locally
packaging and sourced, no artificial
TABLESTAKES production waste ingredients, organic
Zero plastic movement and non-GMO
Environment and
atmosphere
preservation
Sustainable packaging
Community aid and
human rights advocacy
SUSTAINABILITY
ADOPTION CURVE
Extrinsic Intrinsic
Extrinsic associations are the Intrinsic associations are
first point of contact made by consumers who
consumers have with have matured in their
sustainability. sustainability journey.
Consumers experience sustainability
on two levels, extrinsic and intrinsic
Individuals are at different stages of the curve, These findings have major implications for the
depending on the extent to which they see food and drinks industry. Our growing and
sustainability as an external issue which does increasingly urbanised global population has
not directly affect them versus something that high expectations regarding sustainability.
directly impacts them and upon which they can However, it also demands high standards in
have an impact (e.g. choosing clean label foods terms of taste, convenience and value.
that are more environmentally sound (external) Creating a sustainable food chain on a mass
as well as healthier (internal). scale requires a fine balance between improving
sustainability without compromising on these
other key expectations. A mix of creativity,
collaboration and technological innovation
can deliver this balance.
EXECUTIVE SUMMARY © Kerry 2021 | 5
Sustainability – market overview
SUSTAINABILITY/SUSTAINABLE
Sustainable food ATTRIBUTES INFLUENCE YOUR PURCHASE
DECISION OF FOOD AND BEVERAGES1
and beverages are a
$382
75%
69%
62%
3
billion global opportunity
Unsurprisingly, with such enormous consumer
interest in sustainability, the commercial
opportunity is equally substantial. Europe LATAM North America
Kerry research references Kantar’s 2020
estimate that the overall spending SUSTAINABILITY/SUSTAINABLE
ATTRIBUTES INFLUENCE CHOICE
power of consumers who are already
OF RESTAURANT1
engaged with sustainability is estimated
at $382 billion. 72%
60% 57%
The opportunity spans all fast-moving consumer
goods and major food and drinks sectors, and as
more and more consumers become sustainability-
aware, this opportunity will continue to grow.
In the meantime, sustainability is already a
consideration for 69% of global consumers when
buying food and drinks in stores, and for 63% of
Europe LATAM North America
consumers when it comes to eating out.
SUSTAINABILITY – MARKET OVERVIEW © Kerry 2021 | 6
SUSTAINABILITY MATURITY
Sustainability maturity
UK
Benelux
France
Sweden
USA
Germany
Italy
Canada
Poland
Spain
Brazil
Mexico
Argentina
Colombia Guatemala
Russia
Period of exposure to sustainability
(Bubble size represents current population of the country)
While the presence of sustainability as a topic of
concern exists across the globe, no country is alike
in their exposure to sustainability and the level of
maturity their consumers have developed.
Each country’s media, government, and innovation
activities influence their people in unique ways,
driving their consumers to adopt various values,
attitudes and behaviours based on their collective
exposure to sustainability.
STATE OF THE INDUSTRY © Kerry 2021 | 7
Strongest associations
with sustainability
Evolving sustainability messaging as consumer priorities evolve
Despite the rising focus and attention to Regardless of how it gets defined, sustainability
sustainability, consumers across all countries is top-of-mind for consumers around the globe,
have vastly different opinions and associations with 73% of consumers saying they would
with sustainability. change their behaviour to reduce negative
impact on the planet.4
Sustainability has long been associated with
environmentally friendly practices, evoking With the entire planet facing the COVID-19
an immediate association with preservation, pandemic, public health and safety has become
eco-friendly packaging and natural the topmost concern and has come to be
resource protection. strongly associated with sustainability.
Looking ahead, the definition
of sustainability is evolving,
with consumers now blurring the
lines between sustainability and
health and nutrition.
Public hygiene and sanitation, environment and atmosphere preservation,
food waste, and health and nutrition are strongly associated with sustainability.
Sustainability associations GLOBAL EUROPE LATAM NAMER
Public hygiene and sanitation (e.g., reducing the spread of
80% 76% 89% 75%
contaminants/disease)
Environment and atmosphere preservation (e.g., Deforestation,
80% 77% 89% 73%
air/water pollution, climate change, carbon footprint, etc.)
Food waste (e.g., shelf life on products, minimising food waste, etc.) 78% 76% 84% 72%
Health and nutrition (e.g., health aging, nutritionally balanced food, etc.) 77% 74% 86% 73%
Animal welfare and protection (e.g., animal rights, care and protection, etc.) 76% 75% 83% 69%
Product packaging (e.g., recyclable, biodegradable, etc.) 74% 73% 83% 67%
Community aid and human rights advocacy (e.g.,ending hunger,
74% 71% 83% 68%
clean water, worker safety, supporting farmers, gender equality)
Food and ingredient sourcing (e.g., locally sourced, country of origin,
72% 71% 76% 70%
naturally-derived, organic, etc.)
Food production practices (e.g. transparent production, etc.) 72% 69% 79% 68%
Economic stability (e.g., country GDP, inflation, etc.) 68% 61% 79% 63%
STRONG ASSOCIATIONS WITH SUSTAINABILITY © Kerry 2021 | 8TOP DRIVERS OF SUSTAINABILITY ASSOCIATIONS
WITH HEALTH AND NUTRITION
Consumers articulate each of these associations in further depth in
our research. For instance, the association of sustainability with health
AND
and nutrition is made evident through the following drivers:
TOP IMPORTANT
TOP DRIVERS HEALTH
OF SUSTAINABILITY AND NUTRITION
ASSOCIATIONS WITH GOALS
HEALTH AND NUTRITION
(USED LATER IN WHITE PAPER)
1
Highly significant association Average association
Eating more fruits and vegetables 33%
Eating healthy (not more, not less) 31%
Exercising/Staying active 30%
Mental wellness 24%
Limiting/Reducing sugar 23%
No additives/Preservatives 23%
Consuming fresh food and beverages 22%
Managing weight 21%
Healthy aging 21%
Nothing artificial 19%
Unprocessed foods and beverages 19%
Limiting/Reducing fat 17%
Note: percentages are rounded
KERRY PROPRIETARY
INSIGHTS
KERRY PROPRIETARY
INSIGHTS
© Kerry 2021 | 9Sustainability Adoption Curve
and consumer archetypes
Seizing key consumer opportunities
In our research, we uncovered four These consumer archetypes exist globally,
key consumer archetypes based on however the size of these consumer archetypes
differ across countries and regions.
their adoption of and understanding
of sustainability.
Inactives Passives
Followers Frontrunners
CONSUMER ARCHETYPES ON THE ADOPTION CURVE
FRONTRUNNERS
FOLLOWERS
PASSIVES
INACTIVES
SUSTAINABILITY
ADOPTION CURVE
Extrinsic Intrinsic
KERRY PROPRIETARY
INSIGHTS
STAGES OF SUSTAINABILITY ADOPTION AND CONSUMER ARCHETYPES © Kerry 2021 | 10Understanding each of these consumer Despite the varying sizes of these consumer
archetypes – what they value, how they archetypes, each of them understands the
sustainability-imperative, but have differing
define sustainability, specific attributes
drivers and barriers toward its adoption.
they prioritise, can be used as a key to
unlock opportunities to attract them
and meet their unique needs.
SUSTAINABILITY AWARE 49%
Inactives | 6% Followers | 23%
(of sustainability-minded consumers): (of sustainability-minded consumers):
• Care a little • More likely to be younger
millennials, Gen Z
• Don’t act
• Engaged and willing to act
• Price is a big barrier
• Want manufacturers/brands/
external authorities to lead
Passives | 24%
(of sustainability-minded consumers):
• Very environmentally concerned,
Frontrunners | 46%
(of sustainability-minded consumers):
but don’t understand own role/impact
on sustainability • More likely to be millennials – older
millennials, less likely to be boomers
• Price is a barrier to action
• Deeply engaged
• Aware of own impact
• Act consistently
• Influence wider world to act
50%
48
46
40% 41
38
37
30% 31
26
24
20% 21 23
20
17
10%
10
3 6 5
0%
Inactives Passives Followers Frontrunners
Global NAMER Europe LATAM
SUSTAINABILITY ADOPTION CURVE AND CONSUMER ARCHETYPES © Kerry 2021 | 11Sustainability Adoption Curve
The Frontrunners The Passives
Deeply committed to sustainability, aware of their Similar-sized group to the Followers, they care
own need for and impact on sustainable nutrition, deeply about environmental issues, but are less
this large cohort are proactively driving the global likely to make sustainability-influenced purchase
shift towards more sustainable food and beverages. decisions. For them, sustainability is more about
They seek to influence manufacturers and public what the outside world needs to do and less about
authorities to meet their sustainability needs, rather their own personal needs or impact. They are more
than accepting the status quo. Interestingly, this likely to be women and boomers. Price and a lack
group are most likely to be older millennials. of awareness of their own sustainability impact are
the key barriers holding them back from making
more sustainable food and drinks purchases.
While the importance of sustainability
is irrefutable, consumers often state
lack of information, lack of resources,
The Inactives
and price as the largest barriers to A small but extremely important group.
acting sustainably. Frontrunners are not Whilst they account for just 6% of global
hindered by these barriers. consumers, they also represent the 51% of
the global population who are not yet conscious
of sustainability being a consideration in terms
of their food and drinks choices.
The Followers
23% of global consumers who are willing to make While consumers adopt various
sustainable food and beverage choices, but look to ways to be sustainable – recycling,
manufacturers, brands and authorities to take the
reducing food waste, etc, they
lead in terms of providing sustainable options.
relegate the primary role of
This group is most likely to be younger millennials
supporting sustainability to the
and Gen Z.
industry (brands, manufacturers,
government, environmental
agencies, etc.)
SUSTAINABILITY ADOPTION CURVE © Kerry 2021 | 12Category focus areas and expectations
Creating sustainable food and beverages
Sustainability priorities differ by
consumer archetypes, but also SUSTAINABILITY IMPORTANCE IN
SUSTAINABILITY IMPORTANCE
THE CATEGORY1 IN THE CATEGORY
by category.
High frequency consumption of a specific food or
beverage increases the importance of sustainability Dairy 72%
in that product. Dairy, meat and their plant-based
alternatives are the top four categories most
important to carry the sustainability-halo. While Chicken appetisers 68%
snacks and alcoholic beverages ranked among the
bottom, the focus on sustainability in those
Dairy alternatives/
categories continues to rise. 68%
Plant-based dairy
Meat alternatives/
Plant-based meat alternatives
67%
Baked goods 66%
Meals and side dishes 66%
Non-alcoholic beverages 65%
Snacks 64%
Alcoholic beverages 57%
KERRY PROPRIETARY
INSIGHTS
CATEGORY FOCUS AREAS AND EXPECTATIONS © Kerry 2021 | 13How can food and drink manufacturers
help consumers meet their
sustainability needs?
There is a gap between global consumers’ desire to play in accelerating accessibility of more
to eat and drink more sustainably, and how easy sustainable options for consumers and raising
this is to achieve in practice. Price and knowledge awareness of the role consumers themselves
are the key barriers holding people back from can play. With nearly half of all global consumers
making more sustainable choices in the grocery expecting manufacturers to play this role,
store, particularly for the Inactive and Passive watching and waiting is not an option.
cohorts, not to mention the 51% of consumers
who are unaware of the need for sustainability in A powerful way to strengthen sustainability in
relation to food and beverage choices. global nutrition is to switch to more sustainable
recipes, ingredients and manufacturing
processes, whilst continuing to deliver on taste,
Strongly sustainability-minded
price or convenience expectations. Kerry is a
consumers take it upon themselves
pioneer in this space, leveraging technologies to
to resolve food waste but look to the
strengthen the sustainability of some of the most
industry to drive significant impact.
popular consumer foods and drinks in the world.
Some examples of where Kerry and its customers
Kerry’s global research suggests that we are at a are working hand in hand at the cutting edge of
critical tipping point when it comes to sustainable sustainable food and drinks technologies include:
nutrition. Manufacturers have an important role
DELIVERING SUSTAINABILITY IMPACT FOR OUR CUSTOMER THROUGH
OUR SUSTAINABLE TECHNOLOGY PLATFORMS
BREWING SOLUTIONS BC30™
Sustainable solutions across the Reliably sourced, authentic Sugar reduction to improve nutrition Spore-forming probiotic with digestive & immune
whole brewing process including raw savoury taste solutions, from while also delivering lower support benefits is available Non-GMO Project
material, manufacturing and food, for food greenhouse gas and water impacts Verified, enabling sustainable nutrition
disposal, to reduce carbon emissions
and reduce production costs
FOOD PRESERVATION PROTEINS STOCKS & BROTHS
Clean label, consumer friendly Healthy, nutritious and functional Ensuring good animal welfare conditions,
preservation that delivers food safety dairy and plant proteins balanced and sustainable nutrition and
DRY BEVERAGES and less waste contributing to a circular economy
Refreshing sustainable solution
reducing carbon emissions and
waste throughout the supply chain
KERRY RED ARROW OAT TEXTURANT POWDERS
Condensed smoke removes harmful 100% whole grain oats, sourced from
substances and lowers emissions Clinically proven to help
North American farmers, claim-driven, strengthen the immune system,
ENZYMES versus traditional smoking dairy-free, and conscious of our enabling sustainable nutrition
Clean label sustainable solutions to environmental impact
help deliver a better product, better
process and are better for the planet
Clean label taste, natural
ingredients, with origin traceability
Plant-based offerings that support a
consumer shift to lower impact diets
SUSTAINABILITY
ADOPTION CURVE
Extrinsic Intrinsic
SUSTAINABILITY IN MOTION © Kerry 2021 | 14Kerry technology and toolbox
Creating a World of Sustainable Nutrition with Kerry
At Kerry, we inspire food and nourish life with an Kerry enables our customers to move along the
aspiration of reaching 2 billion consumers with spectrum of sustainable nutrition. We have created
sustainable nutrition by 2030. Sustainable nutrition integrated Taste & Nutrition solutions, helping
is about addressing the nutritional, environmental our customers to respond to evolving consumer
and social impact to shape a sustainable food demands and archetypes. The archetypes show
future. We aim to guide, inform and support our an increasing link between personal health and
customers on this journey along the spectrum of environmental awareness. The research shows
sustainable nutrition. Together with our customers, progress across the sustainable nutrition spectrum
we are committed to creating an impact that is aligns with the consumers’ progress across the
better for people, better for society and better Sustainability Adoption Curve and the archetypes of
for the planet. Inactives, Passives, Followers, and Frontrunners, as
consumers move from an externalised only view to
include an internalised view of sustainability.
CREATING A WORLD OF SUSTAINABLE NUTRITION
CREATING A WORLD OF SUSTAINABLE NUTRITION
Positive &
Balanced Nutrition
Clean Proactive
Label Nutrition
Food Safety
& Security Personalised
Nutrition
Social Regenerative
Impact Agriculture
Nutrition Climate
Positive Circular
Solutions
Environmental
& Social Sustainable
Customer
Nutrition
OR - Without Globe
Positive &
Balanced Nutrition
Clean Proactive
Label Nutrition
Food Safety
KERRY TECHNOLOGY AND TOOLBOX
& Security
© Kerry
Personalised 2021 | 15
NutritionKerry technology and toolbox
Creating a World of Sustainable Nutrition with Kerry
Our comprehensive capabilities across all food We have developed a wide range of
and beverage categories means we have been technology platforms to support our
enhancing the nutritional profile of our customers’
customers’ growth toward sustainable
products for decades through food safety and
security, clean label, positive and balanced nutrition, nutrition, no matter where they fall on
proactive nutrition and an increasing focus on the sustainable nutrition spectrum.
personalised nutrition. Through our Beyond the
Horizon sustainability strategy, Kerry is combining
optimising nutritional profiles with improving the
environmental & social impact of our customers’
products with a focus on regenerative agriculture,
circular solutions and being climate positive.
KERRY TECHNOLOGY AND TOOLBOX © Kerry 2021 | 16About Kerry Kerry is the world’s leading taste and nutrition partner for the food, beverage and pharmaceutical industries. We innovate with our customers to create great tasting products, with improved nutrition and functionality, while ensuring better impact for the planet. Our leading and proprietary consumer insights, global RD&A team of 1,000+ food scientists and local manufacturing footprint in 31 countries enable us to co-create with our customers across over 150 countries. At Kerry, we are driven to be our customers’ most valued partner, creating a world of sustainable nutrition, and will reach over 2 billion consumers with sustainable nutrition solutions by 2030. For more information, visit Kerry.com. ABOUT KERRY © Kerry 2021 | 17
Methodology
Conducted in 2021, Kerry surveyed over 14,000 Over 10 sustainability topics and 85
consumers across 18 countries in North America, attributes were tested in relation with
Europe, and Latin America employing a quantitative
associations made with sustainability,
survey methodology. Additional social media
listening and qualitative exploration corroborate
with a focus on grocery products as
the quantitative findings. These respondents were well as foodservice menus.
primary shoppers who prioritised sustainability on
various degrees; i.e. paid attention to sustainability Additionally, consumers were further asked their
messages on the product label or restaurant menu. opinion of sustainability when considering specific
These consumers also tended to read the nutrition food and beverages – meat, plant-based meal
label and ingredient declaration most of the time. alternatives, dairy, snacks, bakery,
meals & sides, and beverages.
METHODOLOGY © Kerry 2021 | 18Sources and citations
Primary source of information:
1. Kerry Proprietary Consumer Research – Sustainability 2021
Additional sources of information:
2. Innova Database, Global, Top Ten Trends Survey 2020
3. Kantar’s #WhoCaresWhoDoes 2020 research
4. Nielsen, The Business of Sustainability, Episode 22, 05-6-2019
SOURCES AND CITATIONS © Kerry 2021 | 19Inspiring Food, Nourishing Life
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