Sports Nutrition Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Sports Nutrition Industry

Environmental, social, and governance, or ESG, refers to the three key factors that determine an investment's sustainability and ethics. An important subset of non-financial performance indicators is the Environmental, Social, and Governance factor, which includes ethical, sustainable, and corporate governance issues, including the need for accountability systems and carbon footprint management within the organization.

The sports nutrition industry is a fast-growing sector and an important part of the food and beverage industry. It is strongly linked to climate-change and government efforts to encourage less meat-based and more sustainable diets globally and in Europe.

In a report by the European Institute of Innovation and Technology's food division, COVID-19 has changed attitudes towards food consumers who are now more concerned with health and the environment. This development presents a unique opportunity for the industry; businesses in the sector have great potential to grow, offering consumers innovative products that respect their environmental values and assist them in leading active and healthy lives. In a similar way, engaging with policymaking is crucial, and staying current on regulations and securing appropriate legislation is essential.

ESG Trends

The main protein source in sports nutrition is whey, which is sourced from grass-fed and free-range farms by some manufacturers, while others avoid using mega-dairy producers. Sports nutrition popularized and made whey a valuable and healthy protein source by using it as a byproduct of cheese production. This makes sourcing the ingredient an inherently sustainable process with a low carbon footprint. In addition, sustainably sourced plant-based products have become increasingly popular among active consumers due to their potential health benefits and reduced environmental impact. Plant-based protein sources such as pea, wheat, nuts, soy, hemp, and hemp seed have continued to be used to create innovative and more sustainable alternatives to animal-based supplements and ingredients. Insect-based protein is another area of innovation. It uses a fraction of the land, energy, and water required in traditional farming, thereby reducing greenhouse gas emissions.

To promote sustainable packaging materials, the EU's Circular Economy Action Plan has its objective which also intends to update EU legislation regarding food contact materials to promote the adoption of more innovative and sustainable packaging solutions as well as reduce food waste. The sustainability journey of a product continues after its disposal, so businesses must take responsibility for the products they sell and work to establish practices to manage waste responsibly, sustainably, and circularly. As such, the sports nutrition sector partner with recycling companies which can be helpful to ensure hard-to-recycle waste is reused to its fullest or converted into resources such as refuge fuels.

Negative ESG Trend

Sports nutrition has had some negative effects on gender equality as products are not designed to meet the needs of a female athlete; instead, they're usually marketed as weight loss products. It is important for the sports nutrition industry to remember that women athletes need proper nutrition, research, engagement, and intelligent education. To promote and celebrate gender equality, a number of nutrition companies have recently developed female-focused brands in response to these impacts already seen in the past.

As a key step toward reducing the sector's carbon footprint, renewable energy sources manufacturers of sports nutrition products use solar panels and biomass plants, they increase supply chain resilience, reduce carbon footprints, and ensure that operations are sustainable in the future.

Growth of the Sports Nutrition Market

Nutrition and diet are essential to achieving maximum performance in sports; the global sports nutrition market was valued at USD 40.0 billion in 2021. The growth rate for this market is expected to be 8.5% from 2022 to 2030. In addition to optimizing training gains, sports nutrition products increase recovery between workouts and events, help maintain and achieve an ideal weight, reduce injury risks, and deliver consistent performance. An important parameter driving the market is the adoption of sports nutrition products by athletes due to their advantages. In addition, consumers are increasingly using sports nutrition products to gain energy, muscle, and support weight management, reducing health disease and obesity as a result. Sports nutrition products are rapidly increasing in popularity among fitness enthusiasts and active lifestyle consumers.

Key Companies in this theme:

    • Iovate Health Sciences

    • Abbott, Quest Nutrition

    • PepsiCo, Cliff Bar

    • The Coca-Cola Company

Scope of the Sports Nutrition Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process.

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key aspects of the Sports Nutrition Industry ESG Thematic Report 

    • Offers a global perspective of the industry and the policies and measures taken by the players as well as the governments.

    • Key insights into the sustainability practices of major players in the market.

    • A brief on risks and challenges faced by the players in the industry while implementing and executing ESG policies.