The need for sustainable and nutritious ingredients has never been greater.
With the global population expected to increase by approximately 2 billion in the next 30 years, the demand for nutritious and sustainable protein sources is putting continued strain on supply chains that are already under pressure.¹
Across the world, changes in policies and trade agreements, geopolitical tensions and increasing tariff costs can disrupt supply chains, pushing up the cost of consumer and capital goods and reducing stability in sourcing and purchasing power.
Climate change is another factor which threatens food production and supply chains. Rising temperatures, extreme weather events, and shifting agricultural conditions are placing immense pressure on crop production, resulting in longer delivery times and higher costs. By 2050, climate disruption to global supply chains could cause up to $25 trillion in net losses.²
By their very nature, the complexity of supply chains, which often rely on multiple inputs across regions, increases the risk of disruption.
“The global food system is a highly integrated and highly dependent system. Weather, geopolitical strife, regulation changes, and so much more are becoming the norm,” says David VandenEinde, VP Food Ingredients Americas, R&D Leader, Cargill.
“With COVID-19, the Ukraine war, and the cocoa supply chain, we have seen how disruption in one part of the system can have significant ripple effects on other parts of the system. The instances of disruption are closer together than they have ever been. Consumers don’t want to see that volatility show up in their products. They expect the food industry to solve that,” adds VandenEinde.
“Customers look to Cargill to help stabilize their supply chains, and we work daily to do just that. We work across our diverse portfolio of proteins and food ingredients, deploying technical solutions and using our global reach to solve problems in new ways,” adds VandenEinde.
This raises the question: in the face of climate and geo-political uncertainty, how can food producers ensure long-term access to ingredients that are both nutritious and sustainable?
Sustainable practices and ingredients
In order to adapt and innovate for long-term resilience, the food industry must continue to adopt sustainable farming practices, intended to protect the environment, expand natural resources, and maintain and improve soil fertility.
Manufacturers are incorporating new strategies and leveraging technology including AI, supplier diversification, strategic inventory management, and digital integration, all designed to enhance sustainability and strengthen food security.
By integrating alternative ingredients – such as grains, legumes and, nuts – manufacturers can reduce reliance on traditional methods that are vulnerable to supply chain instability. Sustainable proteins – from sources such as cell-based foods or protein-rich plants, as well as mycelium, algae, and microbes – are also playing a key role in this shift.
One of the benefits of cultivating cell-based meat and dairy protein is that it does not require large amounts of resources. Studies show that cultivated meat could reduce greenhouse gas emissions by up to 92% and land use by up to 90% compared to conventional beef production.³
Microbial proteins can be grown in large quantities in continuous fermentation processes using a small area of land.⁴ Production of microbial proteins can reduce deforestation, carbon dioxide emissions, and decrease pressures on fertile land to the benefit of natural ecosystems.
As manufacturers seek ways to strengthen supply chains, sustainable proteins such as these can offer a long-term solution that aligns with both commercial and environmental goals.
Ingredients, crops and technologies
The search for resilient and sustainable food ingredients has led to the development of innovative alternatives in key sectors including cocoa, coffee, and fats, and oils.
“The ongoing volatility in global supply chains, especially concerning cocoa & coffee right now, is putting increasing pressure on the food industry to rethink its ingredient base. At REWE Group, we see this not just as a challenge but as a catalyst for innovation,” says Clement Tischer, Head of FoodTech at REWE Group.
“Ingredient innovation will play a crucial role in enhancing food security and resilience, and we believe retail can be a powerful lever to bring these solutions to scale,” adds Tischer.
Cocoa and coffee One of the biggest supply chain challenges in the food industry is for cocoa and coffee. Coffee production is being disrupted by rising temperatures and unpredictable weather patterns, increasing cost and limiting availability.
In response, food manufacturers are exploring alternatives such as lupine beans, chickpeas, and blackcurrants. These more sustainable ingredients offer comparable taste profiles while requiring fewer resources, resulting in a significantly lower environmental impact.
Cocoa production is facing similar challenges, with Côte d’Ivoire and Ghana – responsible for almost 60% of global cocoa production – experiencing reduced yields due to climate change.⁵ As a result, food manufacturers are turning to carob powder thanks to its similar flavor characteristics and a low impact on the environment.
Eggs replacers In recent years, high pathogenicity avian influenza (HPAI) has impacted egg production, leading to rising prices and supply shortages.
Plant-based options such as applesauce, ground flaxseed yogurt, and tofu are gaining popularity as replacements, offering similar functionality in baking and cooking while providing a more stable supply chain.
Fats and oils Another category affected by supply chain instability is fats and oils. Sustainable fat production methods, such as microbial fermentation using yeast and fungi, are emerging as viable solutions.
Yeasts and fungi naturally produce fat, and microbial fermentation can create lipid molecules that are chemically identical to those produced by animals.⁶ In addition to reducing environmental impacts, mimicking animal-like fats and oils through microbial fermentation can control production processes and offer economic benefits by stabilizing costs.
Identifying new opportunities in sustainability
The Future Food-Tech Summit in Chicago will take place on 2-3 June, with an expanded focus on innovation in sustainable ingredients and protein
The event will bring together 400 industry leaders – from global founders and investors, to CPGs and food brands – to identify breakthrough opportunities that bridge supply chain gaps, commercialize sustainable ingredients, and advance protein diversification.
The summit will spotlight areas of innovation exploring how manufacturers can bridge the supply gap and create the next generation of proteins, fats, and high-value ingredients without compromising on taste or cost, while championing sustainability.
Beyond the main sessions, the summit will host networking roundtable discussions, start-up showcases, case study sessions and immersive live tastings, and demonstrations showcasing the latest innovations in proteins, dairy, fats and oils, coffee, and cocoa.
Register here before Early Bird pricing ends on Thursday April 24 to forge partnerships and discover the next generation of sustainable proteins and ingredients.
References
- Good Food Institute. Producing animal-like fats through microbial fermentation.
- United Nation. Population.
- Sun, Y.; et al. Global supply chains amplify economic costs of future extreme heat risk. Nature 627, 797–804 (2024).
- Good Food Institute. New studies show cultivated meat can have massive environmental benefits and be cost-competitive by 2030.
- Bajić, B.; et al. Biotechnological Production of Sustainable Microbial Proteins from Agro-Industrial Residues and By-Products. Foods. 2022 Dec 25;12(1):107.
- FoodNavigator. Cocoa prices hit record high: What does this mean for industry?
