There are no green options — Only Greener

Pooja Porwal
DataSeries
Published in
3 min readAug 15, 2024

The Future of Food in HORECA

Credits: Whatsapp group chat

Sustainability is no longer just a lifestyle choice; it’s a business necessity in the HORECA (Hotels, Restaurants, and Catering) sector. The shift in how we view food isn’t just about ethics — it’s about economics. With food waste contributing to over $1 trillion in global losses annually and the food industry responsible for nearly 30% of global greenhouse gas emissions, businesses that fail to adapt risk falling behind.

Why Sustainability Matters for Business?

Today’s consumers, especially Millennials and Gen Z, are choosing brands based on sustainability, with 73% willing to change consumption habits to reduce their environmental impact. This presents a major opportunity: aligning with sustainable practices can enhance brand loyalty and profitability. Businesses that don’t pivot may face increasing costs due to regulatory pressures and loss of market relevance.

Seizing the opportunity, no green options — only greener

  • Reducing Waste for Profit: In the UK, leading restaurants that have implemented comprehensive food waste tracking systems, such as the Winnow system, have reduced food waste by over 50% within the first year, saving nearly £40,000 annually per site. Globally, such solutions could save the industry $1 billion by 2030. These systems use AI to analyze food disposal patterns, optimize inventory, and adjust portion sizes, effectively increasing profit margins. Similarly, platforms have built successful models by connecting restaurants with consumers eager to purchase surplus food at reduced prices, preventing waste while creating new revenue streams for businesses.
  • New Business Models: Innovative companies are converting waste into high-value products. For example, in the Netherlands, GRO Mushrooms is growing fungi using coffee grounds collected from local cafes. This circular approach is creating a profitable new market for eco-friendly products, and similar upcycling models could generate an estimated $120 billion in revenue worldwide by 2030. In Italy, Milan’s bio-waste transformation plants are converting 130,000 tons of food waste into biogas annually, powering public transportation and reducing dependence on fossil fuels.
  • Tech-Driven Efficiency: AI and machine learning are revolutionizing the food industry. In the US, restaurants using tools like PreciTaste AI for portion control have seen a 30% reduction in food waste, saving around $2,000 per location monthly. Meanwhile, systems like Spoiler Alert help businesses identify surplus inventory and redistribute it before spoilage, contributing to a 20% reduction in overall waste and aligning with consumer demand for sustainable practices. By 2025, tech-driven solutions for food waste management are projected to be worth $4.9 billion globally.
  • Circular Packaging and Distribution: Western markets are embracing innovations in packaging and distribution as part of the circular economy. In Finland, the startup RePack offers reusable packaging for food deliveries, reducing single-use plastic waste by 80%. In the US, Loop is partnering with major food brands to offer products in reusable packaging, reducing packaging waste by up to 70% and enhancing consumer loyalty with its eco-friendly model.

The Competitive Edge

Sustainability is now a competitive advantage. Embracing it not only reduces environmental impact but unlocks access to capital, new customer segments, and long-term growth. Investors are prioritizing ESG (Environmental, Social, Governance) companies, with over $35 trillion flowing into sustainable investments globally. This makes sustainability not just the right thing to do but the smart thing to do.

Act Now or Risk Losing Out

In this hyper-consumer era, conscious consumption is no longer optional. Businesses in the HORECA sector that embrace sustainability will not only drive profit but also position themselves for future success. The future of food is sustainable, and the businesses that adapt will lead the way.

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Pooja Porwal
DataSeries

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