Food Industry and Energy Transition: A Recipe for Competitiveness

Industry leaders, including Grupo Bimbo, Nestlé, and PepsiCo, have recognized that sustainability represents the critical pathway to cost reduction, competitive advantage, and compliance with increasingly stringent environmental regulations. Renewable energy has emerged as the primary catalyst driving transformation across the food sector.

The global food and beverage industry is projected to expand by more than 3% in 2025, reaching $529.66 billion by 2028 (representing a greater than 50% increase over 2024), propelled by escalating demand for healthier and more sustainable products. This growth trajectory reflects a fundamental shift in consumer behavior, with customers increasingly prioritizing not only affordability but also health and environmental stewardship in their purchasing decisions.

Within this paradigm shift, the organic products market alone is anticipated to reach $754.2 billion by 2030. This trend directly responds to consumers’ heightened ecological consciousness. Research by Red Alimentaria reveals a pronounced shift in consumer preferences toward products with reduced environmental footprints and increasedproduction transparency.

The food industry faces intensifying scrutiny: one-third of global CO₂ emissions are attributed to food production, according to SINC Agency data. This reality places escalating pressure on corporations to minimize their environmental impact. In today’s regulatory climate, adopting sustainable strategies has become imperative for maintaining competitiveness and meeting increasingly stringent compliance standards.

In this scenario, renewable energy represents a strategic competitive advantage for food industry leaders, offering three critical benefits: mitigation of regulatory risks, cost optimization through predictable energy tariffs, and brand differentiation among stakeholders. Pioneer companies in this transition will not only meet market expectations but will also establish new standards for operational efficiency and sustainable profitability.

Meeting Environmental Imperatives 

Brazil and Mexico collectively account for over 59% of Latin America’s greenhouse gas emissions, underscoring their pivotal role in the region’s climate strategy. This high concentration of emissions highlights the urgency for sustainable initiatives, particularly in Latin America’s largest economies, where the food industry plays a crucial role in national decarbonization frameworks.

Confronting the accelerating impacts of climate change, corporations must align their emissions policies with national strategies. Among the most ambitious commitments, Mexico has elevated its emissions reduction target to 35% by 2030; Colombia has committed to a 51% reduction; while both Chile and Argentina target carbon neutrality by 2050.

Emissions reduction has become crucial for maintaining and preserving trade relationships. Latin America and the Caribbean represent the world’s leading net food exporters, with export revenues reaching $349 billion in 2022.

However, access to key markets faces potential disruption if companies fail to address their carbon footprints. Beginning in 2026, European exports will be required to comply with the Carbon Border Adjustment Mechanism (CBAM), which will impose levies on carbon-intensive imports. In this evolving landscape, sustainability has transcended environmental objectives—it now constitutes a prerequisite for global market competitiveness.

Securing Stable, Competitive Access to Clean Energy 

Among the factors to consider for a significant reduction of emissions in the food industry, the following stand out: the adoption of renewable energy, the electrification of processes, and the implementation of infrastructure with an emphasis on energy efficiency. These infrastructures enable the maximization of energy utilization, making consumption a more efficient act within operations.

In an era where energy efficiency and emissions reduction represent strategic imperatives, renewable energy presents a transformative opportunity for the food industry. According to the International Renewable Energy Agency (IRENA), renewables have achieved historically low pricing, positioning them as the most cost-effective energy solution for high-consumption industries such as food processing. 

Through power purchase agreements (PPAs), companies can access stable and economical electricity. In 2023, the average cost of solar photovoltaic energy was USD 0.044 per kWh, and onshore wind energy was USD 0.033 per kWh. These prices reflect a decline of 90% and 70%, respectively, since 2010. This economic advantage is particularly relevant in an industry where operational cost control is crucial for maintaining competitiveness.

In comparison, in 2023, fossil fuels had an average cost of USD 0.100/kWh, demonstrating a 56% economic advantage of solar photovoltaic energy over conventional sources. Additionally, investment in renewable projects has generated savings of $409 billion in fuel costs since 2000, according to IRENA.

Through the execution of renewable PPAs, companies can stabilize long-term energy costs, mitigate volatility from conventional sources, reduce operational expenses, and meet regulatory requirements.

The impact is already evident: major food and beverage corporations have adopted ambitious CO₂ reduction targets. Mondelez International has reduced manufacturing emissions by 24% and waste by 31%, exceeding its original objectives. Grupo Bimbo has committed to renewable energy sourcing contracts to achieve net-zero emissions by 2050, targeting a 50% reduction in direct emissions and a 28% reduction across its entire value chain by 2030. Specialized players, including Goya Foods, Grandy Organics, and HimalaSalt, are also integrating renewable energy into operations to minimize carbon footprints, demonstrating that a sustainable model is both viable and essential.

Nestlé targets emissions reductions of 20% by 2025, 50% by 2030, and net-zero by 2050, from a 2018 baseline of 113 million metric tons of CO₂. PepsiCo plans to reduce absolute emissions by 40% by 2030, with a 75% reduction in direct operations and aims to achieve net-zero emissions by 2040, primarily driven by its transition to renewable energy.

Corporate Responsibility, Innovation, and Societal Benefits 

Achieving carbon neutrality in Latin America and the Caribbean presents an extraordinary opportunity to expand economic growth while protecting environmental resources. According to the Inter-American Development Bank (IDB), reaching net-zero could generate $2.7 trillion in net benefits for the region by 2050. 

These gains would derive from a more diversified and efficient energy matrix, based on the complementarity between non-conventional renewable sources and other clean technologies, which would enable reducing dependence on fossil fuels (with estimated savings of $900 billion), decreasing pollution ($500 billion), and improving health and productivity ($1 trillion). Likewise, with the implementation of clean sources, electricity production could reduce its emissions by 95%, combining renewable energies with energy efficiency.

Within this broader transformation, renewable energy serves as a fundamental pillar. It represents an exceptional opportunity to safeguard environmental resources while accelerating the transition that Atlas Renewable Energy facilitates—customized clean energy solutions delivered through PPAs. These contracts provide not only competitive pricing but also long-term energy stability through renewable projects enhanced by battery storage systems.

Brand Differentiation Strategy 

Sustainable practices, particularly the utilization of renewable energy, have become a key differentiator for food and beverage companies throughout Latin America.

Contemporary consumers increasingly value brands that demonstrate environmental responsibility, which directly influences their purchasing decisions. According to Kerry’s research, 49% of consumers incorporate sustainability considerations into their food and beverage choices, with this trend expected to accelerate (EYNG, 2021).

Younger demographics reinforce this pattern. Innova Market Insights research reveals that Generation Z consumers are particularly attuned to product sustainability, making responsible practices essential for companies seeking to engage this emerging market segment.

Leading brands are responding to these expectations by embedding renewable energy throughout their operations. Following the examples of Nestlé and Grupo Bimbo’s, Spanish brewer Mahou San Miguel has committed €220 million to advancing sustainability and innovation in its production systems, including the construction of a biomass facility in Alovera to reduce CO₂ emissions.

The Future of the Food Industry Is Sustainable 

The sustainability transition has become non-negotiable for the food industry. With one-third of global CO₂ emissions originating from food production, companies must decarbonize operations and adopt renewable energy to maintain viability.

Beyond regulatory compliance, sustainable strategies offer competitive advantages by reducing costs, enhancing operational efficiency, and fostering stronger relationships with environmentally conscious consumers. The cases of Grupo Bimbo, Nestlé, and PepsiCo demonstrate that energy transformation is both achievable and profitable.

As global markets tighten environmental requirements and renewable investments continue reducing costs, companies that integrate sustainability into their core strategy will maintain a distinct competitive advantage.

The energy transition delivers not only environmental benefits but also drives innovation and sectoral growth. The strategic choice now confronts companies: adapt and lead the transition, or risk obsolescence in a rapidly evolving marketplace. Embracing a more sustainable business model has transcended future consideration. It represents a present-day competitive imperative.

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This article was created in partnership with Castleberry Media. At Castleberry Media, we are dedicated to environmental sustainability. By purchasing carbon certificates for tree planting, we actively combat deforestation and offset our CO₂ emissions threefold.