How the food supplement sector is embracing environmental sustainability

A first global company survey was conducted by IPSOS on behalf of IADSA to measure the preparedness of the supplement sector regarding environmental sustainability. The study was conducted in more than 25 countries including in Africa, Middle East, Asia, Australia, New Zealand and South West Pacific, Central and South America, Europe and North America between January and March 2023. The target group consisted of both small and medium sized companies (SMEs)1 and multinational corporations (MNCs) represented by IADSA and IADSA member associations. 335 companies took part.

Scroll down to explore the findings

1. Defined as companies with fewer than 250 employees

How relevant is environmental sustainability?

Over half of the survey respondents say that environmental sustainability is of high relevance to their company now (56%), while 17% say the issue will become more relevant over the next 1 or 2 years and a total of 18% say it will become relevant over the medium to longer-term.

How relevant is environmental sustainability?
56% It is highly relevant to my company now
17% It will become more relevant over the next 1 or 2 years
8% It will become more relevant over the next 3 to 5 years
4% It will become more relevant over the next 6 to 10 years
6% It will become more relevant in the longer term
4% The issue has no relevance to my company now or for the foreseeable future
4% Don't know

Base: All respondents (N=335).
Question: Q3. “To what extent would you say that the issue of environmental sustainability is relevant to your company?”

How is environmental sustainability addressed in companies?

Among all those respondents who indicate that environmental sustainability is, or will be, a priority for their company (or who do not know whether it will be), just over half (52%) say the company gives systematic consideration to the issue in its corporate strategy and day-to-day operations. Meanwhile, 40% say their company considers the issue on more of an ad hoc basis, depending on the issue or decision in question.

More MNCs than SMEs report that environmental sustainability issues are considered systematically within their company (63% vs. 27% respectively), while more SMEs report that the issues are considered on more of an ad hoc basis (57% vs. 32%).

How is environmental sustainability addressed in companies?
52% Systematically – it’s a key theme of our corporate strategy and embedded in everything we do
40% On more of an ad hoc basis, depending on the issue or decision in question
4% It is not something we consider much at all
4% Don't know

Base: Respondents who indicate that environmental sustainability is, or will be, a priority for their company, or who don’t know (N=315).
Question: Q5. “In what way, if at all, do you consider environmental sustainability issues within your company?”

What drives companies to focus on environmental sustainability?

Some differences are apparent in the relative level of importance attached to the various factors by MNCs and SMEs respectively.

In particular:

MNCs are more likely than SMEs to identify as important:

  • investor expectations (74% of MNCs say this is very or fairly important vs. 49% respectively);
  • pressure from employees (73% of MNCs say this is very or fairly important vs. 59% respectively).

MNCs are also more likely than SMEs to identify as very important factors:

  • compliance with regulations and legislation (67% vs. 49%);
  • supply chain preparedness (42% vs. 27%).

Very important
Fairly important
Not very important
Not at all important
Don't know
Corporate reputation
52%
42%
4
2
Corporate values
55%
37%
6%
2
Compliance with regulations/legislation
61%
28%
7%
3
2
Customer expectations
54%
34%
7%
1
4
The personal/corporate values or beliefs of the company management/owner
49%
39%
8%
1
3
Supply chain preparedness
37%
47%
11%
1
4
Societal pressure
30%
51%
14%
1
4
Sectoral trends and/or competitor pressure
36%
43%
17%
2
3
Pressure from employees
22%
48%
22%
4
5
Investor expectations
37%
29%
14%
11%
10%

Base: 301 respondents.
Question: Q6. "How important, if at all, have the following been in encouraging a focus on environmental sustainability in your company?"

What is the focus of companies’ sustainability objectives?

The majority of respondents indicate that a range of goals are reflected in their company’s sustainability objectives. Indeed, more than four in five say the objectives address: employing responsible marketing and labelling (86%); ensuring food supplements contribute to healthy and sustainable diets (86%); preventing negative impacts of the production chain on the environment (84%); minimising food and packaging waste (84%); and working towards responsible sourcing in the supply chain (81%). A somewhat smaller majority say their company’s sustainability objectives cover supporting smallholder farmers and local communities (64%).

To a great extent
To some extent
Hardly at all
Not at all
Don't know
Employing responsible marketing and labelling
48%
39%
7%
3
3
Ensuring that food supplements contribute to healthy and sustainable diets
59%
27%
5
5
4
Preventing negative impacts of the production chain on the environment
40%
44%
8%
2
6%
Minimising food and packaging waste
41%
43%
9%
3
4
Working towards responsible sourcing in the supply chain
44%
37%
8%
4
7%
Reducing greenhouse gas emissions
41%
38%
10%
5
6%
Supporting smallholder farmers and local communities
29%
35%
16%
12%
8%

Base: 315 respondents.
Question: Q10. "To what extent are each of the following criteria reflected in your company’s sustainability objectives?"

What is holding companies back from focusing more on environmental sustainability?

Asked what, if anything, might be holding their company back from focusing, or doing more, on environmental sustainability, respondents commonly mention issues relating to cost or finance. Approaching half mention the cost of sustainability actions to the end consumer (48%), and a similar proportion mention the cost to the company itself (44%). Around a third mention a lack of government support or incentives (34%).

More MNCs than SMEs mention the cost of sustainability actions to the end consumer as a factor holding their business back from focusing, or doing more, on environmental sustainability (55% vs. 37% respectively).

Cost of sustainability actions to the end consumer (i.e. higher product prices)
48%
Cost of environmental sustainability actions to the company
44%
Other issues have higher priority
37%
Lack of government support/incentives
34%
Administrative burden
29%
Supply chain preparedness
28%
Lack of specific in-house sustainability expertise
26%
Limited short-term financial returns
24%
Lack of acknowledgement of sustainability issues in the company’s supply chain
18%
Lack of regulatory/legislative pressure
18%
Lack of customer/public demand
16%
Don’t know what is required/ lack of access to relevant information/guidance
15%

Base: All respondents (N=335).
Question: Q11. “Which of the following, if any, are holding your business back from “focusing on” / “doing more on” environmental sustainability?”

What are companies’ plans for sustainable products and packaging?

Of those respondents who indicate that environmental sustainability is, or will be, a priority for their company (or who don’t know), and/or who indicate that their company considers environmental sustainability systematically or more on an ad hoc basis, 7 in 10 say the company offers, or has short-term plans to offer, packaging with recycled or biodegradable content. A slightly lower majority – around 6 in 10 – say the company offers, or has short-term plans to offer, organic products (56%) or products carrying other types of sustainability or environmental claims (63%).

Yes
No, but planning to do so in the next 2 years
No, but planning to do so in the longer term
No and not planning to do so
Don't know
Packaging with recycled or biodegradable content
55%
15%
15%
7%
8%
Products carrying other types of sustainability or environmental claims
45%
17%
16%
7%
14%
Organic products
47%
9%
10%
20%
13%

Base: Respondents who indicate that environmental sustainability is, or will be, a priority for their company, or who don’t know; and/or who indicate that their company considers environmental sustainability systematically or more on an ad hoc basis (N=315).
Question: Q13. “Does your company offer, or have plans to offer, any of the following?”

How long have companies been selling organic products?

Of those respondents whose company currently offers organic products, a majority (61%) indicate that it has been doing so for more than three years, while 17% indicate it has been doing so for between one and three years, and 14% for less than a year. Eight per cent are unsure.

How long have companies been selling organic products?
14% Less than one year
17% Between 1 and 3 years
61% More than 3 years
4% Don’t know / Can't remember

Base: Respondents who indicate that their company currently offers organic products (N=148).
Question: Q15. “For how long has your company been selling organic products?”

How long have companies been selling products with packaging with recycled/biodegradable content?

Of those respondents whose company currently offers packaging with recycled or biodegradable content, approaching half of them (47%) say it has been doing so for three years or less. A slightly smaller proportion – 40% – say it has been doing so for more than three years (21 percentage points fewer than in the case of organic products), while 13% are unsure.

Approaching half of these respondents (48%) indicate that increasing the offer of packaging with recycled or biodegradable content will be a priority for their company within the next 12 months.

How long have companies been selling products with packaging with recycled/biodegradable content?
14% Less than one year
33% Between 1 and 3 years
40% More than 3 years
13% Don’t know / Can't remember

Base: Respondents who indicate that their company currently offers packaging with recycled or biodegradable content (N=174).
Question: Q15b. “For how long has your company been selling products with packaging with recycled/biodegradable content?”

To what extent do companies consider UN SDGs in their work?

Just over half of respondents (53%) say that their organisation gives a great deal or a fair amount of consideration to UN Sustainable Development Goals (UN SDGs) in its work. Meanwhile, a third (33%) say it gives little or no consideration to the Goals and a further 14% report not knowing whether or not this is the case.

MNCs are almost two times more likely than SMEs to say their organisation gives a great deal or a fair amount of consideration to UN SDGs (61% vs. 35% respectively). Indeed over half of SMEs (52%) say they give little or no consideration to the Goals).

To what extent do companies consider UN SDGs in their work?
25% A great deal
28% A fair amount
16% Not very much
17% Not at all
14% Don't know

Base: All respondents (N=335)
Question: Q16. "To what extent, if at all, does your organisation give consideration to the United Nations (UN) Sustainable Development Goals (SDGs) in its work?"

Which are the most common UN SDGs companies are working towards?

The specific UN SDGs that respondents most commonly say their organisation is working towards are health and well-being (54% mention this) and responsible consumption and production (42%). These are followed by decent work and economic growth (32%), zero hunger (30%), climate action (28%) and gender equality (28%) (Figure 6.2). At the other end of the scale, comparatively few respondents say their company is working to help end poverty (6%), reduce inequality (5%) or promote sustainable cities and communities (4%).

Total
Company size: SMEs <250
Company size: Multinational corporations
Health and well-being
54%
Total
60%
SMEs <250
53%
Multinational corporations

Responsible consumption and production
42%
Total
29%
SMEs <250
45%
Multinational corporations

Decent work and economic growth
32%
Total
31%
SMEs <250
34%
Multinational corporations

Zero hunger
30%
Total
16%
SMEs <250
35%
Multinational corporations

Climate action
28%
Total
13%
SMEs <250
18%
Multinational corporations

Gender equality
28%
Total
18%
SMEs <250
31%
Multinational corporations

Peace, justice and strong institutions
21%
Total
21%
SMEs <250
21%
Multinational corporations

Clean water and sanitation
15%
Total
11%
SMEs <250
16%
Multinational corporations

Quality education
15%
Total
11%
SMEs <250
16%
Multinational corporations

Industry, innovation and infrastructure
14%
Total
10%
SMEs <250
17%
Multinational corporations

Life on land
14%
Total
13%
SMEs <250
13%
Multinational corporations

Affordable and clean energy
11%
Total
5
SMEs <250
13%
Multinational corporations

Partnering for the UN SDGs
11%
Total
6%
SMEs <250
13%
Multinational corporations

Life below water
10%
Total
11%
SMEs <250
9%
Multinational corporations

Ending poverty
6%
Total
3
SMEs <250
7%
Multinational corporations

Reduced inequality
5
Total
5
SMEs <250
6%
Multinational corporations

Sustainable cities and communities
4
Total
5
SMEs <250
3
Multinational corporations

Base: Respondents whose organisation gives a great deal, or a fair amount, or not very much, consideration to the UN SDGs in its work, or who don’t know (N=279).
Question: Q17. “What are the main, if any, UN Sustainable Development Goals that your company is currently working to help achieve (e.g. through specific policies, initiatives, or activities)?”