Balancing Sustainability in the Food and Beverage Industry

As the food and beverage (F&B) industry expedites its shift to more sustainable operations, companies within its sector have found themselves with a lot on their plates.

Resource-intensive processes; complex, fragmented supply chains; naturally perishable product lines; and sweeping shifts in policies, among other unique factors, make the transition particularly taxing—especially for those trying to avoid disruptions to core business needs. But are certain setbacks a given, or is sustainability without sacrifice possible? Absolutely. However, striking that balance is far from easy. It requires the highest levels of innovation, collaboration, and dedication to achieve.  

Below, we dive into the nuanced challenges that F&B businesses encounter across production, packaging, distribution, and inventory management, and explore actionable strategies that can help them overcome these obstacles and ultimately reach their environmental (and economic) goals.

Production Challenges and Solutions

Production is one of the most resource-intensive areas of food and beverage operations, consuming large amounts of water, energy, and raw materials. Optimizing this stage for sustainability involves reducing resource consumption, minimizing waste, and implementing more efficient processes—all while maintaining product quality.

Production Challenges

• High Water and Energy Usage
  Water is essential in various production stages, from growing raw ingredients, to washing them, to cooking them, to cleaning their vessels and equipment. Energy consumption is also high, especially in processes like large-scale cooking, cooling, and packaging. In dairy, meat, and beverage sectors, these demands are particularly high.
  
  
• Waste and Byproduct Management
  Production generates a lot of waste in the form of organic byproducts, packaging scrap, and other types of residuals. Oftentimes, these materials get cross-contaminated, preventing many recycling systems from accurately reading them. Due to that complication, these materials can easily become difficult to properly reuse or recycle, and instead contribute to higher disposal costs, a greater reliance on landfills, and an increased probability of environmental and brand-related risks.
  
  
• Emissions from Food Processing
  Processes such as baking, drying, and frying typically rely on fossil-based fuel as power sources. What’s more, is they release greenhouse gases and other pollutants as they take place. Even in minor cases, these emissions add up over time, impacting businesses’ carbon footprints in tangible ways.
  
  
• Sweeping Policy Shifts
  As government transitions within the United States, the buzz surrounding policy shifts in ingredient use and manufacturing processes abound. Depending on how things play out in the coming weeks / months / years, food and beverage businesses may find themselves overburdened with unusable inventory (waste), new regulations, and unclear options on how to proceed with the resources they have on hand or need.  

Actionable Production Strategies

• Energy-Efficient Machinery
  Investing in machinery with better energy ratings, such as high-efficiency boilers and chillers, helps reduce energy use. Technologies like Variable Frequency Drives (VFDs) allow equipment to operate at optimal power levels, reducing energy waste.
  
  
• Post-Recycling Solutions
  Some companies have begun turning food waste into bioenergy, converting byproducts into biogas or biomass fuel. Alternatively, food waste, unsalvageable packaging waste, and other residual materials can be processed into steam, electricity, or fuel through waste-to-energy (WTE) and alternative engineered fuel (AEF) technologies. These approaches not only divert waste from landfills, but also create renewable energy sources that drive carbon reduction goals and value creation opportunities.
  
  
• Water Treatment and Recycling Systems
  Closed-loop water solutions allow for water reuse within facilities, cutting down overall consumption. Water can be filtered, purified, and reintroduced into the production cycle, reducing waste and helping companies comply with water conservation regulations. In some cases, water can even be returned to nature and rejoin the water cycle.
  
  
• Automation and AI
  Automated systems can optimize energy use by ensuring machines operate at peak efficiency and are turned off when not needed. Additionally, AI can monitor production in real-time, reducing excess resource use and enhancing overall efficiency. Although this technology is still in its infancy, machine learning (and what it is capable of) is poised to explode even more in the coming years.
  
  
• Sustainable Consulting
  A waste solutions partner can offer consulting services, helping companies evaluate and implement sustainable strategies to stay on top of policy shifts, conserve resources, and reduce waste. From recommending recyclable plastics and biodegradable materials to advising on ways to create value from unusable products or components, these experts support F&B companies in minimizing their environmental impacts while maximizing their compliance and operational efficiency.
  
  

Packaging Dilemmas and Alternatives

Packaging is essential for product protection and shelf-life extension, but most traditional materials, especially single-use plastics, contribute heavily to pollution. Transitioning to sustainable packaging options can be challenging, especially when maintaining product safety and durability is a priority.

Packaging Challenges

• Single-Use Plastics
  Plastic remains prevalent in F&B packaging due to its cost-effectiveness, durability, and versatility. However, plastics are non-biodegradable and many cannot be effectively recycled, especially if contaminated by other materials. As a result, they often end up in landfills or find their way into oceans and other ecosystems.
  
  
• Balancing Shelf Life and Sustainability
  Sustainable packaging options, such as compostable materials, may not provide the same barrier protection as plastic, leading to shorter shelf life or compromised quality for certain products.
  
  
• Regulatory Compliance
  As governments worldwide introduce stricter regulations on plastic usage, like Extended Producer Responsibility (EPR), companies face additional pressure to find alternative packaging solutions that are compliant, yet cost-effective.

Actionable Packaging Strategies

• Compostable and Biodegradable Materials
  Materials such as PLA (polylactic acid) derived from corn starch, cellulose-based films, and fiber-based trays are gaining popularity. These options can decompose under the right conditions, reducing waste and in turn, carbon footprints.
  
  
• Reusable Packaging Programs
  Some companies are piloting reusable packaging systems, where containers are returned, cleaned, and reused. This model can be particularly effective for beverage companies and meal kit providers, reducing the reliance on single-use packaging.
  
  
• Edible Packaging
  Innovative materials, like seaweed-based wraps, or rice-based straws can provide an edible, waste-free solution. Although still limited to specific product types, edible packaging could become a practical alternative for certain foods and snacks.
  
  
• Recyclable, Lightweight Materials
  Using materials that are easier to recycle, like PET plastics, aluminum, and glass, can reduce the environmental impact of packaging. Lightweighting—designing packaging with less material—also reduces shipping weight and fuel usage, further lowering the carbon footprint.
  
  

Sustainable Distribution

Distribution involves transporting products from manufacturing to consumers, which requires significant energy and resources, particularly for perishable goods. A more strategic, sustainable approach to distribution can reduce emissions, optimize logistics, and contribute to overall corporate sustainability goals.

Distribution Challenges

• Transportation Emissions
  Long-haul and frequent shipments contribute to greenhouse gas emissions, especially when using diesel-powered trucks.
  
  
• Cold Chain Requirements
  Transporting temperature-sensitive products requires refrigerated vehicles, which increases both energy consumption and emissions.
  
  
• Complex Supply Chains
  Expansive supply chains face a web of logistical complications that often result in increased inefficiencies, environmental impacts, and costs.

Actionable Distribution Strategies

• Post-Recycling Solutions for Logistics Centers
  Waste management partners can help food and beverage companies implement alternative engineered fuel or waste-to-energy solutions at warehousing and distribution centers. On the AEF side, they can turn waste that cannot be recycled into low-carbon fuels that can then be used in the paper mills that create their packaging. On the WTE side, that waste can be turned into steam or electricity that can be used to heat products or systems, power cold storage facilities, and energize equipment.
  
  
• Waste Logistics and Carbon Footprint Reduction
  Even large companies with in-house environmental teams benefit from working with partners whose core business is sustainability. Such partners can offer fresh perspectives and objective insights to help companies better assess their carbon footprint in distribution and logistics. Additionally, these partners can leverage their time-tested expertise and expansive network to offer businesses waste logistic solutions that optimize waste pickup and hauling routes, utilize fleets of more fuel-efficient vehicles, provide local sourcing recommendations and support, as well as a number of recycling and recovery solutions that are likely outside of their business’ scope.
  
  
• Zero Landfill Programs
  In distribution centers and warehouses, a sustainable waste partner can implement zero-landfill programs that take holistic approaches to recycling and repurposing waste materials. These methods integrate themselves within entire value chains to minimize the environmental impacts of storage, distribution, and any downstream activities, aligning with corporate sustainability targets from end-to-end.
  
  

Inventory Management and Waste Reduction

The perishable nature of many food products makes effective inventory management essential for minimizing waste and reducing environmental impact. Poor inventory practices can lead to overstock, spoilage, and unnecessary waste, ultimately impacting both sustainability and profitability.

Inventory Management Challenges

• Food Waste from Overstocking
  Overstock and inadequate demand forecasting can lead to spoilage, as unsold products may reach their expiration dates and must be discarded.
  
  
• Unpredictable Demand and Seasonality
  Demand often fluctuates due to seasonal patterns, promotions, or unexpected events, complicating inventory management and increasing waste risks.
  
  
• High Storage and Disposal Costs
  Excess inventory requires storage and sometimes specialized disposal, adding to operational costs and environmental impact.

Actionable Inventory Management Strategies

• Total Product Recycling Solutions
  When inventory has reached (or is close to reaching) its expiration, has been overproduced, or suffers from some kind of defect, certain solutions can recycle these products safely and discreetly in their entirety, extracting usable materials from products and their packaging to repurpose or resell them. This not only optimizes resource use, but drives environmental and financial performances forward.
  
  
• Secure Disposal / Assured Destruction
  Under similar circumstances, when products are unfit for the market, a waste generator can opt to have them undergo a secure disposal (also called an assured destruction) process. This solution can intertwine with recycling solutions to repurpose components, but the key focus here is risk mitigation. It ensures waste is handled discreetly; that it’s well-monitored and tracked; that it cannot be recovered due to shredding, incineration, and/or some other form of destruction; and that its disposal can be witnessed and officially certified as being sustainably destroyed. Ultimately, secure disposal protects the generator’s customers, preserves their brand’s integrity, reduces the amount of waste they create, and keeps products out of landfills where they could potentially recirculate or contribute to the generators’ carbon footprints.
  
  
• Anaerobic Digestion, AEF, and WTE for Unsold Goods
  Expired or unsellable inventory can be processed through anaerobic digestion, a process that breaks down organic matter to produce biogas. This method turns waste into energy, helping companies reduce their carbon footprint while managing excess inventory sustainably. In a comparable vein, most unsalvageable materials can be transformed into low-carbon fuel via alternative engineered fuel solutions. This fuel can then be used in industrial boilers, such as cement and lime kilns, power plants, paper mills and more. For steam or electricity, materials can also be sent to thermomechanical treatment facilities (TTFs) where they incinerate waste to generate renewable energy—a process that can also be used for the purchase of RECs to further offset environmental impacts. These solutions can all serve as the "destruction" step in Secure Disposal / Assured Destruction Solutions.
  
  
• Advisory Services for Optimized Inventory Management
  By offering insights into sustainable inventory practices and demand forecasting, a waste solutions partner can help companies improve inventory turnover rates, reduce spoilage, and minimize waste. They can also uncover synergies between different waste streams and their solutions to extract the most value possible from the resources on hand.
  
  

Striking the Balance

For food and beverage companies, sustainability is not just a trend—it’s a necessity for long-term success in a world where consumers and regulations increasingly demand eco-friendly practices. With the right waste strategies and support, F&B businesses can implement powerful solutions across production, packaging, distribution, and inventory management that reduce waste, cut emissions, and support sustainability goals.

A sustainable waste solutions partner brings valuable expertise, technology, and services that can be transformative. From wastewater treatment and total product recycling to alternative fuel creation and waste-to-energy generation, these partners provide innovative solutions that reduce environmental impact without sacrificing operational efficiency or profitability. With the support of such partnerships, F&B companies can achieve ambitious environmental goals, like zero waste-to-landfill, and set a precedent for their industry in building toward a more resilient future.

By prioritizing collaboration, innovation, and the expertise of sustainability partners, the food and beverage industry can navigate the complexities of sustainable transformation and ultimately, achieve a model of sustainability without sacrifice.

Want to learn more about balancing sustainability with your core business needs?