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4 MIN READ

11-14-2024

Certified Green: The Importance of Sustainability Labels in F&B

Alex Schulze , CEO/Co-Founder

Certified Green: The Importance of Sustainability Labels in F&B

It’s no secret that sustainability is now a key factor in consumer decision-making.

According to the World Economic Forum, 66% of global consumers consider sustainability when making a purchase—a figure that rises to 75% for Millennials. The F&B sector has responded to this demand, with many products in grocery stores advertising claims such as "farm fresh," "locally sourced," or "natural." With so many products touting their eco-friendliness, it can be challenging for consumers to differentiate between genuine sustainability efforts and greenwashing.

This is where certifications and labels play a crucial role. They provide consumers with the assurance that a product’s production and manufacturing processes have been accredited as sustainable by a trusted authority, offering more than just marketing buzzwords.

What Do Sustainability Certifications and Labels Mean?

Sustainability certifications and standards are voluntary guidelines that companies follow to meet specific environmental and ethical practices. These programs, developed by stakeholders and experts, outline criteria for things like responsibly growing crops or ethically harvesting resources, often accompanied by third party verification processes—known as "certification"—to ensure compliance. Certified products are then traceable throughout the supply chain and labeled for consumers.

Certifications typically evaluate a company’s environmental impact, such as reducing its carbon footprint or using resources like water efficiently. They also emphasize fair labor practices and the use of less harmful or recycled materials. Research shows that businesses adopting these standards benefit both the environment and their bottom line.

Why Do Certifications Matter?

Businesses in the F&B sector that prioritize certifications set themselves apart from others for a few reasons. First, they foster stronger consumer loyalty. As consumers become more informed and seek transparency, certifications provide assurance of a product’s quality and integrity, encouraging trust in the brand. Labels like ‘USDA Organic,’ ‘Fair Trade,’ and ‘Rainforest Alliance’ show consumers that the products align with their values around environmental responsibility, social justice, and health.

Secondly, certifications create a unique market differentiation. Rather than relying on flashy marketing terms, they offer credible proof of ethical sourcing, environmental stewardship, and quality. Many consumers are willing to pay a premium for certified products because they reflect these added values. Without certifications, businesses may find it harder to justify higher prices, limiting both profitability and their competitive position.

Finally, sustainability certifications encourage innovation and efficiency in operations. Businesses committed to these standards are often driven to reduce waste, conserve resources, and improve processes, benefiting both the environment and operational costs.

Notable Certifications in F&B

Sustainability standards are rapidly expanding, with around 264 active voluntary sustainability standards across 194 countries and 15 sectors, and approximately 457 ecolabels in 199 countries, spanning 25 industries. In the U.S. food and beverage sector, several reputable certifications stand out:

     1. USDA Organic Certification: This certification from the U.S. Department of Agriculture ensures that food products meet strict organic standards, prohibiting synthetic fertilizers, pesticides, GMOs, and irradiation. By choosing USDA Organic products, consumers support environmentally friendly farming practices.
     2. UpCycled Certified: A newer certification, UpCycled Certified focuses on reducing food waste by transforming byproducts or surplus ingredients into new products, benefiting both the environment and manufacturers by creating value from otherwise discarded resources.
     3. Rainforest Alliance Certification: This certification covers deforestation, biodiversity conservation, fair labor practices, and community development. Choosing Rainforest Alliance products supports responsible sourcing and sustainable production practices.
     4. Fairtrade Certification: Fairtrade promotes equitable trade by ensuring fair prices and working conditions for farmers and workers in developing countries, empowering marginalized communities and fostering social justice within the food supply chain.
     5. Marine Stewardship Council (MSC) Certification: MSC certification guarantees that seafood comes from fisheries following sustainable practices, protecting marine ecosystems and minimizing environmental impact.

As consumers increasingly prioritize sustainability, certifications are vital for distinguishing authentic practices from greenwashing marketing claims. Beyond being marketing tools, sustainability labels represent a crucial commitment to a truly responsible and sustainable future for both the industry and our planet.