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Released November 27, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--The food and beverage industry is facing increasing pressure on its environmental and social impact as consumer awareness grows and government regulations become stricter. Consequently, companies in this sector are embracing environmental, social and governance (ESG) standards to drive long-term sustainability.
According to ClimateSeed, global food production contributes 26% of global greenhouse gas emissions, especially from the agricultural sector, while around 1 billion tonnes of food is wasted each year. Amid these rising environmental concerns, companies are recognizing the urgent need to reduce their carbon footprint, adopt sustainable practices, and align with global climate goals. As a result, food and beverage companies are making substantial investments in ESG-related initiatives such as ethical sourcing, energy-efficient production and sustainable packaging solutions. Additionally, renewable energy, carbon capture technologies, and waste reduction strategies are also becoming key components of their sustainability plans.
The growing pressure for ESG compliance is also driven by rising eco-conscious consumers. A recent Deloitte study reveals that nearly two-thirds (64%) of Generation Z consumers and 63% of millennials are willing to pay a premium for environmentally sustainable products as they are increasingly seeking brands that align with their values on climate change and environmental stewardship.
Social responsibility also remains a critical focus. For instance, certifications like Fairtrade and Rainforest Alliance are increasingly being implemented to ensure fair wages and safe working conditions, as well as sustainable agriculture and forestry practices.
In addition to environmental and social responsibility, strong governance is also crucial to sustaining long-term growth and success of the food and beverage industry. Ethical leadership, transparent reporting, and anti-corruption measures are key components to build trust with consumers as well as stakeholders.
Industrial Info is tracking more than 1,900 ESG-related capital projects in the Food & Beverage Industry worldwide, worth US$11 billion. Grassroot projects account for US$2.3 billion worth of investment, in addition to unit additions (US$6.71 billion) and equipment additions (US$605 million). Subscribers to the Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a full list of project reports.
Europe, South America and Africa are the top three regions which are investing significantly across ESG-related projects. With investments up to US$3 billion, Europe leads the way, accounting for 27% of the market share. South America and Africa follow with investments worth US$2.43 billion and US$2.23 billion, respectively. Asia and North America are also investing significantly, with up to approximately US$2 billion each.
By country, Nigeria is the leading investor with US$1.92 billion in investment, closely followed by Brazil with US$1.64 billion. In both countries, the majority of the projects are unit additions. In Nigeria, the projects are aimed at adding biomass-to-energy cogeneration units at existing projects, while in Brazil projects are mainly focused on adding renewable natural gas (RNG), corn-based ethanol, biodiesel, biogas and solar power units.
The agricultural sector drives the most spending (around US$7.67 billion) across 845 projects. South Dakota Soybean Processors (Volga, South Dakota) is investing around US$500 million in the construction of a new soybean processing plant in Mitchell, South Dakota. The plant supports ESG goals by producing renewable biofuels, reducing emissions, and creating local jobs while also supporting regional agriculture by providing a stable market for farmers. This enhances food security and keeps revenue within the state, fostering sustainable economic growth. Click here to read the project report.
The baked goods sector accounts for US$1.72 billion in spending across more than 50 projects. Belgium's LA Lorraine Bakery is planning to invest US$21 million in environmental upgrades at the Erpe-Mere & Bakery Products Plant. The project includes implementing energy-efficient measures and switching to renewable energy (residual heat) in order to reduce carbon dioxide emissions and minimize environmental impact. Click here for more information.
The beverage sector is also garnering sizable investments worth US$1.64 billion across 271 projects. Diageo plc (NYSE:DEO) (London, England) is investing around US$156 million in several projects. One of the projects with a capital spend of US$75 million is aimed at the Guinness Stout Brewery in Dublin, Ireland. As part of decarbonization and environmental upgrades, the project aims to reduce carbon emissions by upgrading existing equipment to improve emission control and energy efficiency, ensuring compliance with environmental regulations while driving significant energy savings. Click here to read the project report.
Around 55% of the total spending is in the planning stage, approximately 16% is undergoing engineering, while around 29% is under construction. The majority of the projects are scheduled to reach fruition by December 2027, while the remaining are scheduled for completion by 2030.
With ESG at the forefront, companies in the food and beverage industry are not only addressing climate change, but also strengthening their brands and future-proofing their operations. The shift to sustainable practices is not just a trend, but a strategic move that positions the industry for long-term success in an increasingly eco-conscious market.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
According to ClimateSeed, global food production contributes 26% of global greenhouse gas emissions, especially from the agricultural sector, while around 1 billion tonnes of food is wasted each year. Amid these rising environmental concerns, companies are recognizing the urgent need to reduce their carbon footprint, adopt sustainable practices, and align with global climate goals. As a result, food and beverage companies are making substantial investments in ESG-related initiatives such as ethical sourcing, energy-efficient production and sustainable packaging solutions. Additionally, renewable energy, carbon capture technologies, and waste reduction strategies are also becoming key components of their sustainability plans.
The growing pressure for ESG compliance is also driven by rising eco-conscious consumers. A recent Deloitte study reveals that nearly two-thirds (64%) of Generation Z consumers and 63% of millennials are willing to pay a premium for environmentally sustainable products as they are increasingly seeking brands that align with their values on climate change and environmental stewardship.
Social responsibility also remains a critical focus. For instance, certifications like Fairtrade and Rainforest Alliance are increasingly being implemented to ensure fair wages and safe working conditions, as well as sustainable agriculture and forestry practices.
In addition to environmental and social responsibility, strong governance is also crucial to sustaining long-term growth and success of the food and beverage industry. Ethical leadership, transparent reporting, and anti-corruption measures are key components to build trust with consumers as well as stakeholders.
Industrial Info is tracking more than 1,900 ESG-related capital projects in the Food & Beverage Industry worldwide, worth US$11 billion. Grassroot projects account for US$2.3 billion worth of investment, in addition to unit additions (US$6.71 billion) and equipment additions (US$605 million). Subscribers to the Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a full list of project reports.
Europe, South America and Africa are the top three regions which are investing significantly across ESG-related projects. With investments up to US$3 billion, Europe leads the way, accounting for 27% of the market share. South America and Africa follow with investments worth US$2.43 billion and US$2.23 billion, respectively. Asia and North America are also investing significantly, with up to approximately US$2 billion each.
By country, Nigeria is the leading investor with US$1.92 billion in investment, closely followed by Brazil with US$1.64 billion. In both countries, the majority of the projects are unit additions. In Nigeria, the projects are aimed at adding biomass-to-energy cogeneration units at existing projects, while in Brazil projects are mainly focused on adding renewable natural gas (RNG), corn-based ethanol, biodiesel, biogas and solar power units.
The agricultural sector drives the most spending (around US$7.67 billion) across 845 projects. South Dakota Soybean Processors (Volga, South Dakota) is investing around US$500 million in the construction of a new soybean processing plant in Mitchell, South Dakota. The plant supports ESG goals by producing renewable biofuels, reducing emissions, and creating local jobs while also supporting regional agriculture by providing a stable market for farmers. This enhances food security and keeps revenue within the state, fostering sustainable economic growth. Click here to read the project report.
The baked goods sector accounts for US$1.72 billion in spending across more than 50 projects. Belgium's LA Lorraine Bakery is planning to invest US$21 million in environmental upgrades at the Erpe-Mere & Bakery Products Plant. The project includes implementing energy-efficient measures and switching to renewable energy (residual heat) in order to reduce carbon dioxide emissions and minimize environmental impact. Click here for more information.
The beverage sector is also garnering sizable investments worth US$1.64 billion across 271 projects. Diageo plc (NYSE:DEO) (London, England) is investing around US$156 million in several projects. One of the projects with a capital spend of US$75 million is aimed at the Guinness Stout Brewery in Dublin, Ireland. As part of decarbonization and environmental upgrades, the project aims to reduce carbon emissions by upgrading existing equipment to improve emission control and energy efficiency, ensuring compliance with environmental regulations while driving significant energy savings. Click here to read the project report.
Around 55% of the total spending is in the planning stage, approximately 16% is undergoing engineering, while around 29% is under construction. The majority of the projects are scheduled to reach fruition by December 2027, while the remaining are scheduled for completion by 2030.
With ESG at the forefront, companies in the food and beverage industry are not only addressing climate change, but also strengthening their brands and future-proofing their operations. The shift to sustainable practices is not just a trend, but a strategic move that positions the industry for long-term success in an increasingly eco-conscious market.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
