Economics & Sustainable Growth of Natural Food Additives – Part 3

Posted by on Oct 26, 2012 in Brand, Sustainability
Economics & Sustainable Growth of Natural Food Additives – Part 3

Parts 1 and 2 of this three-part series discussed the dilemma in which companies often find themselves when incorporating natural food additives into their food and beverage products as well as the reason food additives are essential to the global food supply. Part 3 discusses the importance of securing a sustainable and traceable supply chain for food additives for food and beverage companies.

Natural Additives and the Sustainable Supply Chain

Natural may not be enough for the increasingly savvy consumer. Millennials, for example, believe that the source as well as the content of their food is increasingly important. Instead of simply asking if the food is natural, they want to know if it is natural and sustainable. All generations from Baby Boomers on have a greater understanding of healthy and organic ingredients. Fair trade product sales increased 12% worldwide in 2011 due to ethical sourcing and increased customer awareness and demand.

This interest and demand in healthier food is going to increase the stress on the sustainability of raw materials supply. Companies that truly desire to offer natural and organic products may not be able to simply because the natural materials do not exist or do not exist at an equitable cost. Jamie Rice, RTS research and marketing director, says that we simply cannot grow all of the natural ingredients to meet current demand. He anticipates it taking another ten years to reach parity with synthetic ingredient production.

Read the full article on Sustainable Business Forum.

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