Net Zero Strategies in Foodservice: dairy industry challenges and success stories

Why Net Zero matters in foodservice 

Sustainability, and particularly Net Zero strategies, is becoming a core pillar of the foodservice industry. The dairy sector is also working to reduce its environmental impact, navigating both challenges and opportunities in the journey toward Net Zero. 

The concept of Net Zero—achieving a balance between greenhouse gas emissions produced and those offset or reduced—is a key goal for a sustainable future. In foodservice, sustainability is not just an ethical concern but a competitive advantage.

According to Mintel’s Sustainable and Viable Dairy in 2035 report, 54% of Italian consumers believe that products with a higher environmental impact should be priced higher. 

Additionally, from 2021 to 2024, the number of consumers limiting or reducing dairy consumption increased: 

• France: from 20% to 30% 

• Germany: from 25% to 35% 

• Italy: from 22% to 32% 

In 2024, 78% of UK consumers still used cow’s milk in hot beverages. However, rising coffee and tea prices due to environmental regulations led to a consumption drop of 43% in France, 41% in Germany, and 40% in Italy. 

Challenges in achieving Net Zero in the dairy industry

The dairy sector faces several obstacles on the road to Net Zero: 

• Greenhouse Gas Emissions: Dairy production generates significant emissions, particularly methane, which has a strong impact on global warming. 

• Resource Management: Intensive use of natural resources and waste management pose further environmental challenges. 

• Transition Costs: Investments in sustainable technologies and practices require financial resources that not all businesses can afford immediately. 

In Germany, the average price of conventional dairy products increased by 91% when external climate costs were included, highlighting the urgent need for mitigation strategies and innovation. 

To overcome these challenges, the dairy sector is fostering close collaboration between businesses, research institutions, and policymakers. Extending sustainability efforts across the entire supply chain maximizes positive impact. Many companies are also investing in reforestation projects and renewable energy to offset residual emissions, reinforcing their environmental commitment. 

Net zero in foodservice: a game-changer 

Net Zero strategies in foodservice are reshaping the entire food value chain, from production to distribution, with the primary goal of drastically reducing greenhouse gas emissions. 

To achieve this, companies are investing in multiple interconnected strategies. They are: 

• Reducing Direct Emissions by implementing innovative technologies and adopting sustainable farming practices. 

• Developing Offset Programs for unavoidable emissions, including major investments in reforestation and renewable energy projects. 

Collaboration is key. Producers, suppliers, and institutions are working together, sharing goals, resources, and expertise to accelerate the transition. This shift is not just about environmental protection—it is also driving innovation, making the entire food chain more sustainable, resilient, and competitive in the long term. 

Dairy industry strategies toward Net Zero 

Sustainable practices are not just an environmental necessity; they also provide a competitive advantage. 

For example, Arla Foods has implemented several initiatives to achieve Net Zero by 2050, including: 

• Methane-reducing feed additives to lower livestock emissions. 

• Smart farms equipped with IoT sensors to collect data and optimize operations, reducing environmental impact. 

• Sustainable packaging, shifting to recyclable materials and low-carbon footprint solutions. 

Meanwhile, FrieslandCampina has introduced farmer support programs to encourage low-impact milk production, strengthening consumer trust and loyalty. These initiatives not only enhance brand reputation but also open new market opportunities by meeting the growing demand for sustainable products. 

Conclusion 

The journey toward Net Zero in foodservice is both a challenge and an opportunity to rethink the industry’s production and business models. 

Investing in sustainability means investing in the future. Companies that successfully integrate Net Zero strategies into their operations will not only reduce their environmental impact but also gain a competitive edge in the global market. 

For more insights on implementing these strategies in your business, visit our dedicated sustainability in foodservice section and explore additional resources.