The world’s top fast-moving consumer goods companies, including Nestlé, Coca Cola, and P&G, are racing to adapt to rapidly changing consumer trends including a rise in veganism and increasing activism on plastic packaging, according to a report by CDP. The life cycle environmental impact of products from the industry is significant and FMCGs play a key role in curbing over a third of global greenhouse gas emissions, notes the firm. In an effort to address this, 75 percent of fast-moving consumer goods companies directed M&A efforts towards niche, environmental brands in the last five years and this type of activity more than quadrupled over that time.
Some of the most transformative low-carbon innovations delivered by these companies include developing vegan and organic product ranges. CDP’s analysis shows five out of seven food and drink companies that originally offered dairy or meat-based products are innovating with new vegan alternatives.
Consumer activism on plastic packaging is forcing companies to rethink their approach, with around 60 percent investing to advance biodegradable plastic and recycling infrastructure. Despite this innovation in the sector, almost 60 percent of the top 10 revenue generating brands for each company have failed to deliver low-carbon innovations in the last 10 years.