Supply Links

The pandemic, along with shipment delays and climate-related disruptions, has significantly raised consumer awareness about the complexities of how products reach grocery shelves and foodservice outlets.

Key Drivers

As supply chain weaknesses have become more visible, consumers are increasingly concerned about the robustness of sourcing practices. Key dynamics include growing awareness of climate vulnerable and resource-intensive ingredients; 23% of U.S. consumers aged 18-44 are concerned about the impact of climate change on coffee production.

This growing concern reflects a broader shift towards prioritizing sustainability, transparency and long-term outlook in sourcing.

How This Trend is Manifesting

01.

Climate & Supply Chain Initiatives

Climate and/or supply chain initiatives highlighting efforts by brands to reduce climate impact e.g. carbon neutral products, or replanting initiatives at origin.

02.

Upcycling

Upcycling as an effort to incorporate traditionally discarded products into beverages, with examples including DASH wonky fruit soda and Discarded cascara spirit.

03.

The Emergence of Perceived Sustainable Alternatives

The emergence of perceived sustainable alternatives to climate-vulnerable or resource-intensive ingredients. Consumer acceptance for many of these ingredients is still low, based on priorities such as taste, cost and availability.

Top Tips to Access This Trend

Emphasize transparent supply chains – highlight sourcing practices by sharing information about ingredient origins, farming practices and supplier partnerships to build trust. Focus on tangible actions.

Work with partners who can support climate messaging, such as climate neutral, reducing emissions or tangible targets such as the Science Basted Targets initiative (SBTi).

Educate consumers – create content and campaigns that inform consumers about supply chain challenges, fostering a sense of transparency and shared responsibility.

Partner with suppliers who can support robust and resilient supply chains such as multiple sourcing origins and manufacturing facilities.

What’s Next?

As pressures continue to mount, we expect to see greater emphasis on supply chain and climate resilience from brands and consumers alike. This may include increased adoption of regenerative agriculture and investment in drought-resistant or alternative crops, or exploring new growing/sourcing regions.

As consumer scrutiny increases, we may also see stricter regulations and certificates for sustainability, helping brands meet rising expectations for transparency and ethical practices.