Trends in sustainable development within the food and beverage sector

DNHN - 55% of Food and Beverage (F&B) business leaders increase environmental activities. The food and beverage industry also ranks third in the global sustainability ranking.

The food and beverage industry and the global challenge of "climate change"

Food and Beverage (F&B) is one of the world's largest industries and has a significant impact on the lives of billions of people. According to the F&B research report published by The Business Research Company in January 2023, the F&B market is expected to recover from the "black swan" event - Covid-19, and its size is projected to increase to $9,225 billion by 2027, with an average growth rate of 6.3%.

Also among the leading industries in terms of sustainable development (sustainable development) is the food and beverage industry. According to research conducted by ESG consultants EcoVadis on over 46,000 companies, the food and beverage industry has a score of 48.9, placing it among the Top 3 industries with the highest scores for environmental issues and overall sustainability, along with the construction, finance, legal, and consulting industries.

In addition, climate change easily affects the food and beverage industry. In the form of hurricanes, floods, and fires, climate change poses a threat to food and beverage companies by disrupting supply chains and reducing the availability of raw materials. This encourages the food and beverage industry to direct its production and commercial activities with a sustainable strategy.

Many food and beverage (F&B) companies are focusing their research and development (R&D) efforts on green technologies, processes, and more sustainable products, and 55% of F&B business leaders have increased their environmental investments. a school setting.

BrewDog has invested £12 million in a production system that converts waste from the brewing process into bioenergy, thus supplying energy for the plant, transport vehicles, etc., and reducing water consumption. According to BrewDog's sustainability report, between 2016 and 2021, this beer company will decrease its electricity consumption per HL by 43% and its water consumption per HL by 55% (HL: hectoliter, equal to 100 liters). Or Ferrara Candy Company's packaging will be 100% reusable, recyclable, or compostable by 2025.

An increasing number of brands are reusing food and manufacturing byproducts. For instance, Wheyward Spirit uses whey from the cheesemaking process to make wine, and ReGrained uses grain leftover from breweries to make ingredients for snack bars and chips. This trend has also spread to restaurant chains and small businesses, such as restricting the use of plastic utensils and replacing plastic packaging with eco-friendly alternatives...

The steps of Vietnamese businesses

In Vietnam, food and beverage is an important industry with significant growth potential. According to research published earlier this year by Euromonitor, the value of Vietnam's F&B market is projected to increase by 18% between 2022 and 2023, reaching a revenue milestone of approximately VND 720,300 billion in 2023. Experiencing a period of upheaval as a result of the pandemic and the tendency of consumers to value green and sustainable products, F&B businesses in Vietnam have also undergone a continuous transformation towards sustainability along the entire value chain. the process of making.

Trends in sustainable development, such as the use of vegan and organic ingredients, sustainable farming, and reuse-recycling of waste, are also constantly updated and developed in the industry daily. measures to limit the use of plastic and reduce packaging in general, reduce food waste, etc.

For instance, Vinamilk, the F&B brand with the highest value in 2022 (according to Forbes), invests continuously in sustainable and green technologies and solutions in the system of farms and production plants, demonstrating a strategic and long-term commitment to sustainability.

Currently, thirteen farms and ten factories of Vinamilk have installed solar energy, while promoting green energy sources such as biomass, compressed natural gas (at the factory), and biogas (on the farm). 87% of the plant's fossil fuel energy has been replaced with clean, green energy from Biomass and CNG, and 15% to 20% of the plant's electricity comes from solar power. Vinamilk also constructed a model of an ecological dairy farm, Green Farm, Organic Organic, and practices sustainable dairy farming.

In conjunction with the reduction of greenhouse gases, Vinamilk has successfully planted one million trees in Vietnam. Next, five years from 2023 to 2027 will be devoted to planting trees to achieve Net Zero. - Most recently, this company announced that the British Standards Institute has approved Vinamilk's factory and dairy farm in Nghe An. Certified carbon neutral by BSI (United Kingdom) and Bureau Veritas (France) by PAS2060:2014 standard. This company is reducing the use of plastic bags, plastic spoons, plastic straws, and shrink film across all of its locations.

It can be said that Vinamilk is a typical example of a food and beverage (F&B) company riding the green transformation wave, exemplifying the inevitable shift of this crucial industry in Vietnam and around the world.

Net Zero - Difficult problem, but impossible not to solve

Every degree Celsius increase in global average temperature could reduce wheat production by as much as 6 percent, according to a warning from Deloitte. Up to 3.2% for rice, 7.4% for maize, and 3.2% for soy.

In addition to solutions that businesses can actively implement, it should be acknowledged that many aspects of controlling greenhouse gas emissions are beyond the control of the food and beverage industry. Approximately 80% of emissions fall under Scope 3 (consumption, transportation, investments, etc.), such as when consumers discard food before consumption or dispose of packaging improperly. determined.

Therefore, in addition to reducing greenhouse gas emissions from the inside, businesses actively implement a variety of programs to have a positive impact on the community, form green lifestyle awareness and plant trees.

In this process, consumers' preference for green, sustainable products; investors' decision to choose the line of stocks - ESG enterprises to invest in; or the state, the government's development of policies and legal corridors to promote sustainable development - will all be the driving force behind the transformation of businesses pursuing sustainable development goals such as Net Zero.

P.V