Fast Moving Consumer Goods (FMCG) Industry market had a value of $10 trillion in 2017 and is expected to reach over $15 trillion in 2025, according to a research done by Allied Market. It’s a reflection of modern society, where uncontrolled consumption is seen a retail therapy and a way to happiness, although short-lived.

So many citizens have embarked in this snow ball that natural resources have been depleted as business models, in its large majority, were linear instead of circular. Not long ago, some film directors raised the issue by producing some films in a call for our attention to the unsustainable minerals’ extraction, in certain parts of our Planet. Notwithstanding, demand for those minerals have not stopped, nor its traffic.

In that same report, food & beverage represented approximately 89% of the FMCG market. Geographically, the USA, Canada, China and India are the top 4 markets for this industry.

The Sustainability Consortium, mentions that consumer goods account for 60% of global GHG emissions, 80% of water withdrawals and 2/3 of deforestation. Given the evidence of the negative impact of Climate Change many parts of our Planet are already living, it is imperative to be more resources efficient. Climate Change if not tackled properly, with actions that limit Global warming to 1.5º C of pre-industrial levels by 2030, will increase the risk of droughts and the need of forests. Sustainable measures are thus, needed so businesses can continue meeting consumers’ demand.

According to CDP, 90% of FMCG’s carbon emissions are in the value chain. Some global large brands have been requesting its suppliers to comply with sustainability standards, including carbon reduction. For example, Unilever has been developing many sustainable initiatives to change their products offering to more sustainable ones, transforming also its business model and requiring its suppliers across the value chain to be sustainable, too. The same with P&G, that has been investing some resources to R&D&i for its products to become more water efficient, for instance.

Given that food & beverage arrive at our homes packed, and sometimes too packed, materials’ waste has been the primarily focus of all companies that operate along the entire value chain, until the product reaches the end consumer. CDP, mentioned that 60% of those companies have been investing in biodegradable plastic and recycling infrastructures as a way to minimise waste, reduce carbon footprint and resources usage. Danone has been the leader in such transformation but it hasn’t been enough. Apparently 60% of the top 10 companies have failed to innovate sustainably.

Different market surveys show that consumers are increasingly more demanding with the products and services they buy, preferring sustainable ones. Consumers’ awareness and worries with Climate Change has increased. But there’s still work to be done for the transformation to occur. If companies resist incorporating sustainability as part of their business models, including products or services offering, not only they are contributing to a worse Planet and society but also to their own death. Then, corals, moss and other flora will only be part of historic memory, possibly shown in museums or galleries. Mickey by Damien Hirst could be a representation of Humankind negligence with environment and the unsustainable living style. You can see its sculpture at: https://www.christies.com/lot/lot-6283778/?intObjectID=6283778

Mickey by Damien Hirst
This Mickey’s sculpure by artist Damien Hirst is available at Christies, link shown above

Update on 12/06/2021: Stella McCartney gathered yesterday with the G7 in Cornwall joined by a delegation of 9 other CEOs of world organisations. Listen to her brief interview with Sky News, where she speaks on the harmful state of the fashion industry and how politicians should enable sustainable fashion to expand.

https://news.sky.com/story/stella-mccartney-says-fashion-industry-is-unfashionable-and-one-of-the-most-harmful-when-it-comes-to-climate-crisis-12330084

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