GUIDING TRENDS (CONT.) Guiding Trend 4 - Less is More
Sustainability is no longer just a buzzword—it has become a driving force in the food industry. As consumers grow more conscious of the environmental impact of their choices, the demand for sustainable practices, products, and packaging is reshaping the market. Brands that embrace eco-friendly solutions are not only meeting consumer expectations but also contributing to a healthier planet.
"NIQ’s latest Green Gauge sustainability report found consumers continue to prioritize the environment and climate. Ranking #14 out of societal concerns in 2015, climate is now the #6 concern, on par with issues like healthcare, immigration and government corruption. The rise in climate concerns coincides with Americans seeing and experiencing the impacts of rapidly changing climate at higher rates (e.g., intense hurricanes, flooding, wildfires, drought.)"
-Sherry Frey, Health & Wellness Industry Leader at NIQ
One key trend is the shift toward multi-purpose foods that cater to a variety of consumer needs simultaneously. Products designed to be versatile—whether used in multiple recipes, meal types, or dietary preferences—help reduce food waste while offering convenience. This approach aligns with consumer values by ensuring more efficient use of resources and minimizing excess.
“Since last year, there have been reported increases in limiting consumption to reduce waste, travel in more sustainable ways, choose less polluting sources of energy for cars and homes, talking to others about the issues and, most importantly for the CPG industry, 2 pt increase in consumers who are considering the environment in their purchasing decisions."
-Sherry Frey, Health & Wellness Industry Leader at NIQ
Another critical focus is on repurposing leftovers and reducing waste. Innovative brands are finding ways to transform by-products or surplus ingredients into new, high-value offerings, such as soups, snacks, or even pet food. This not only reduces waste but also reinforces a commitment to sustainability, resonating with eco- conscious consumers.
“Consumers are increasingly aware of the impact of food waste and have been making personal commitments to do better. In, fact, NIQ research found reducing food waste by eating more leftovers was one of the top ways consumers will indicate they are living a more sustainable lifestyle.”
-Sherry Frey, Health & Wellness Industry Leader at NIQ
Additionally, shoppers are paying closer attention to sustainable packaging. Products that use biodegradable, compostable, or reusable materials stand out on the shelf, signaling a brand’s dedication to reducing plastic waste and environmental harm. Companies that prioritize minimal and sustainable packaging gain an edge in appealing to environmentally aware customers. This is especially impactful with younger demographics, particularly Gen Z.
“Being a socially or environmentally responsible retailer influences which retailers Gen Z shoppers choose. In a recent survey of Gen Z shoppers, 55% indicated that being “a socially or environmentally responsible retailer” was either important or very important to their choice of retailer – even higher than the availability of a helpful app, at 53%.”
-NIQ BASES 2024 Store Choice Drivers
Overall, integrating sustainability into all aspects of the food industry—from product design and packaging to waste reduction—will be critical in meeting the growing demand for responsible and impactful choices. The companies that lead in this space are not just shaping a greener future but are also earning long-term customer loyalty.
WHAT’S IN STORE | 2025
© 2025 International Dairy Deli Bakery Association
Guiding Trends
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