Regenerative agriculture keeps growing among FMCG companies as a powerful sustainability strategy, particularly in food categories. Unlike conventional farming, it restores soil health, captures carbon, and strengthens ecosystems, addressing climate change and food security challenges. With 60% of global corporates planning sustainable sourcing investments in the next five years, this approach offers ethical benefits and strategic advantages – healthier ingredients, resilient supply chains, and reduced carbon footprints. The pressing question remains: are these efforts effectively connecting with consumers and driving real impact?
What is regenerative agriculture and where is it more prevalent?
Regenerative agriculture – practices like crop rotation, reduced tillage, cover cropping, reduced reliance on chemical fertilisers/pesticides and agroforestry – aims to restore ecosystems, improve soil health, and sequester carbon. Hence, it is a compelling solution for carbon-intensive industries like food and beverages. Per Euromonitor’s Sustainability Claims Tracker, categories such as dairy, staple foods, and cooking ingredients lead in regenerative agriculture adoption, generating over USD2 billion in retail sales. Pet care, driven by the US pet humanisation trend, is the fastest-growing segment, with brands like Freshpet highlighting local, regenerative beef sourcing and animal welfare practices.
For FMCG companies, regenerative agriculture is more than an environmental initiative – it strengthens brand positioning, appeals to eco-conscious consumers, and safeguards supply chains against resource scarcity. However, the true test lies in whether these claims resonate with consumers and deliver measurable environmental and social impact.
Are regenerative agriculture claims resonating with consumers?
Consumer concern about climate change remains high, with 61% of global consumers expressing worry, yet only half believe their actions can make a meaningful difference. Brands that simplify sustainable living can build stronger loyalty. However, unclear labelling poses a significant barrier, with one in four consumers unsure which sustainability features to prioritise.
Despite growing traction in sustainable sourcing, fuelled by scrutiny of product formulations, ingredient origins, and the avoidance of chemicals, awareness of regenerative agriculture lags behind claims like "Organic" or "Sustainably Sourced". In fact, in Euromonitor’s Voice of the Consumer: Sustainability Survey, fielded January-February 2025, only 12% of consumers reported purchasing products associated with regenerative practices in the past month, compared to 28% for products with no artificial or chemical ingredients claims. Despite this relatively low awareness, the market is showing signs of growth.
Global per capita consumption of products carrying regenerative agriculture claims increased 13% over 2020-2024. France and the US lead this trend, with per capita spend growing 42% and 35%, respectively
Source: Euromonitor Sustainability Claims Tracker
To bridge the awareness gap, brands can leverage storytelling, transparency, and education. For example, McCain introduced Regen Fries in North America as part of its "Taste Good. Feel Good" campaign, combining educational efforts like the Farms of the Future AR game and interactive market experiences to engage consumers.
Pairing regenerative agriculture with familiar claims like "Natural" or "No Artificial Ingredients" can also enhance its recognition and broaden its appeal, driving awareness and adoption.
Why are FMCG companies betting on regenerative agriculture despite its challenges?
The answer lies in building resilience. Climate change threatens agricultural supply chains through extreme weather and declining soil fertility. Regenerative practices not only mitigate these risks but also contribute to reducing GHG emissions, positioning companies as climate action leaders.
This shift also aligns with growing demand for sustainable business practices. Regenerative agriculture enables companies to meet stakeholder expectations for environmental responsibility, tap into the expanding market for sustainable products, and follow key regulations like the EU's Nature Restoration law.
Beyond consumer appeal, regenerative agriculture strengthens supply chain resilience and traceability, key aspects as companies face pressure to address Scope 3 emissions. However, its success relies on collaboration. FMCG companies must invest in education, innovation, and partnerships to overcome barriers like high implementation costs. Supporting suppliers with training and resources will be essential to scale regenerative practices and build a more sustainable and resilient food system.
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