Story so far
Traditionally, ‘sustainability’ in dietary supplement ingredients has been equated with organic farming, ethically sourced materials, and various alliances (rainforest, fairtrade, global recycled).
However, the narrative is evolving. We are dealing with finite natural resources. With climate change at the forefront, today’s definition of sustainability includes supply chain logistics, geopolitical realities, climate, energy efficiency, waste reduction, and water conservation.
Ensuring that the sourcing and producing dietary supplement ingredients leave the least possible ecological footprint is gaining importance for responsible brands. It includes the primary ingredients and the lesser discussed ‘other ingredients’ that might be overlooked in sustainability audits.
How do consumers see the sustainability of supplements?
Consumers’ perceptions are changing, and more no longer equate sustainability to eco-friendly packaging, organic, ethical, and sustainable labels, certificates, and marks. They now seek a higher standard of ‘green’ provenance that involves the product’s entire life cycle. This shift in perception is driven by a confluence of societal trends, including the rise of the eco-conscious millennial and Gen Z customer base, whose spending habits are increasingly influenced by the values espoused by brands.
Transparency plays a vital role in consumer perceptions of sustainability. Shoppers want to know the origins of the ingredients in their supplements. They are more likely to support brands that provide detailed, verifiable information on the sustainability practices of their supply chain partners.
How businesses are measuring sustainability in the supply chain?
Companies are looking at new ways to vet supply chains. Beyond self-reported data, rigorous third-party audits and ESG assessments are gaining traction, where auditors can verify the claims and the methodologies used to minimize environmental impact.
Adopting a lifecycle assessment (LCA) approach, where a product’s environmental toll—raw material extraction, production, distribution, use, and disposal—is examined, enables companies to pinpoint and address weak spots in sustainability. Such comprehensive evaluations ensure that each ingredient aligns with the brand’s sustainability goals.
Technology shows the way
Technology offers a glimmer of hope in navigating these challenges. From blockchain to traceability software, tech solutions provide unprecedented levels of transparency and verification, allowing companies to validate their sustainability claims effectively.
Blockchain, for instance, can offer a permanent, unalterable record of a product’s supply chain, enabling consumers and brands to trace an ingredient’s origins back to the source. Such technology-driven transparency builds trust and forms a robust defense against greenwashing.
Sustainability in ingredient buying decisions
A product’s sustainability profile—from ethical sourcing to the carbon footprint of production—increasingly influences buying behaviors. For brand differentiation, it’s time to make tough decisions. From switching suppliers to overhauling production methods, commitment to sustainability is no longer optional— it is imperative for business growth.
Challenges for ingredient suppliers for maintaining sustainability
Recognizing the need for a sustainable supply chain is one thing; overcoming the complex challenges involved is another. Ingredient suppliers often need help with a puzzle between sustainable practices and the practical aspects of supply and demand.
Suppliers are grappling with the dilemma of scaling sustainable practices. While small-scale operations can uphold stringent ethical and ecological standards, scaling up to meet the needs of larger companies often requires compromise, whether in the form of increased waste, energy consumption, or sourcing from a broader, potentially less sustainable range of producers.
Need for better communication on sustainability
Communicating the need for sustainability is another challenge. It is hard to convince stakeholders on an uneven playing field. The cost of sustainability is another significant factor in the supply chain. Paying the extra price for a sustainable ingredient is a hard bargain in a brand-contract manufacturer-driven model.
Collaborations between brands, supply chain vendors, and conservation organizations can catalyze meaningful change. By sharing knowledge, resources, and best practices, these alliances amplify impact and set new benchmarks for sustainability.
