Mondelez State of Snacking Report in 2024More than two-thirds of snack consumers choose products that align with their values. Consumers are increasingly favoring ethical brands.
This evolution has led to innovation in sourcing, production and packaging as well as waste management. Manufacturers and brands see these changes as essential to meet consumer and regulatory expectations.
Sustainable development factors
Six key sustainability developments are defining the future of our industry.
1. Disposal of hazardous chemicals
The importance of sustainable packaging is increasing, especially when it comes to the elimination of PFAS. Per- and polyfluoroalkyl chemicals, also known as PFAS or perfluoroalkyl compounds, are a wide range of synthetic chemicals. These substances are subject to European regulation under the European Persistent Organic Pollutants (POPs) Regulation. PFAS substances are currently under review, while other PFAS have been given harmonised labelling and classification under the Classification, Labelling and Packaging (CLP) Regulation.
In recent years, several US states, including New York, California and Washington, have passed laws regulating PFAS food packaging. Aron Potash, a Los Angeles-based partner at US law giant Latham & Watkins and a member of the Environmental, Land and Resources group, says such regulation “includes a ban on the use of PFAS.”
The U.S. Environmental Protection Agency will designate certain PFAS substances as hazardous under CERCLA in May 2024.
2. Manage the carbon footprint
Like many other industries, the confectionery industry is under increasing pressure to reduce its climate impact in production.
Potash says the confectionery production process can be energy intensive, which is why many manufacturers are actively looking for ways to reduce carbon emissions.
Mars, Hershey and Mondelez, among others, have committed to reducing their carbon emissions by setting “net zero” goals, using renewable energy and other strategies.
The U.S. Securities and Exchange Commission, by a vote of 3-2, recently adopted new rules that require public companies to include comprehensive climate change disclosures in their filings and submit that data to the SEC. California’s Climate Corporate Data Accountability Act SB253 requires companies with revenues of more than $1 billion to report their greenhouse gas emissions annually.
Manufacturers' suppliers are being incentivized to reduce their carbon emissions. It is important to adopt practices such as growing cocoa with regenerative agricultural methods. Inset is a strategy that was developed by the insetting team.. Companies often purchase carbon offsets to supplement their efforts.
The development of methods for measuring carbon emissions and the requirements for companies to report their emissions are becoming more stringent, says Rebecca Kaya, a regulatory expert at Ashbury.
3. Greenwashing: how to fight it
Kaya says green claims are increasingly under scrutiny, highlighting the need for robust and universally accepted methodologies to assess the environmental impact of food production.
She notes that labeling policies are evolving based on the production method, but different schemes complicate matters. In addition, the movement to reduce food waste is gaining momentum.
Deforestation has become a major concern for manufacturers and brands, who are now focusing on ensuring transparency and traceability in their supply chain. The EU Deforestation Regulations (EUDR), which require companies to ensure their products do not contribute to deforestation, are driving a significant shift in sustainable sourcing.
Initiatives such as the EUDR support sustainability policies. Kaya concludes by stating that policies and regulations such as the EUDR will be essential to address the challenges that the environment and society will face in the future.
4. Building sustainable food systems
The importance of sustainable food systems is increasing. A good example of this is the Republic of Ireland's commitment to implement a sustainable food system by 2050.
Another key initiative is the European Farm to Fork Strategy. The objective of the strategy is to make food systems fairer, healthier and more environmentally friendly. The strategy aims to improve the sustainability of the EU food supply chain, reduce its environmental impact and increase the resilience of the system.
5. Improve worker safety
Worker safety, particularly in terms of reducing heat stress, is a major concern. Earlier this week, the U.S. Occupational Safety and Health Administration proposed its first federal standard requiring employers to implement programs to assess and manage workplace heat hazards.
Potash points out that for candy makers and others, if this rule is finalized, it may be necessary to change practices to comply with the new regulations. Several states have recently passed similar laws to protect workers from heat stress.
6. Packaging innovation: driving the future of packaging
Packaging innovation is an urgent need to make all confectionery packaging recyclable within the proposed timeframe.
Priorities include developing degradable packaging and removing harmful substances from recycled plastics. Kaya says “packaging recovery has become increasingly important,” with individual producers trying to capture packaging waste in order to maintain accurate waste data.
As part of a coordinated effort to combat plastic pollution, more than 175 countries have agreed to develop a legally binding agreement by 2024. The global position highlights the need to improve the traceability and transparency of data on raw materials and packaging. In response, software is emerging that seamlessly integrates with food business operators’ (FBOs) existing data systems.
Kaya says the challenge facing the industry today is collecting product data to meet the growing demand for transparency and reporting.
She points out that data collection is a major challenge due to the complexity of the global supply chain and the different standards and maturities in each region.
The path ahead
Sustainable policies by 2030 will meet the growing needs of both Generation Alpha consumers and the planet.
Kaya predicts that the food industry will move towards a holistic approach, focusing on environmental and social impact rather than traditional food information. Brands will use QR codes to provide detailed off-pack information. Expect stricter oversight of environmental claims and stricter animal welfare regulations for animal products. Additionally, there will be a focus on domestic food production to ensure food safety.
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