The beverage industry is undergoing a green makeover, innovating everything from ingredients to emissions. If you’re the type of person who checks labels for more than just calories, you’re not alone.
Eco-conscious consumers are becoming more discerning about what they drink and the companies they support. Flashy eco-labels aren’t good enough anymore. Real sustainability means innovation, regulation and accountability. This is what it looks like in action.
1. Smarter and Cleaner Ingredients
More brands are turning to regeneratively farmed crops, local growers and organic ingredients to reduce transportation emissions and rebuild soil health. For example, major soda producer PepsiCo has committed to cultivating 10 million acres of sustainably sourced ingredients by 2030 and has already reached half that goal in 2024.
Ethical ingredient sourcing is becoming a purchasing priority. Labels that prove ethical supply chains build consumer trust and nudge shoppers toward eco-conscious options. This strategy is also good business. When millennial and Gen Z consumers believe a brand cares about the environment, they are 27% more likely to buy from it compared to older consumers, even paying more for sustainable packaging.
2. Revolutionary Packaging
Plastic alternatives — like aluminum cans, glass, recycled paperboard and biodegradable pouches — are changing the game. In 2021, the BBC reported on their first attempts to go zero-waste with a fully biodegradable paper bottle design. Coca-Cola is trying out paper bottles with a thin plastic liner.
With Americans buying about 30 billion plastic single-use bottles annually, it’s more imperative than ever that producers find alternatives to plastics that end up in landfills. Manufacturers must keep the product’s end-of-life packaging recyclability in mind.
3. Energy Efficiency
Beverage manufacturers are cutting energy use by installing solar panels, using energy recovery systems and redesigning factory layouts to minimize waste. The Brooklyn Brewery began its sustainability journey with big moves in 2016, with an air curtain-insulated cold box, which reduced its energy consumption. The facility also converted all lights to low-energy LEDs in the same year.
4. Wise Water Management
Water is essential for any beverage, but it is also a fragile resource. The beverage industry uses significant amounts for cleaning, brewing and processing, so water stewardship is becoming critical.
Diageo — the company behind Guinness and Smirnoff — reports cutting water use by 21% across its operations over the past decade. With a goal of 40% reduced water use by 2030, significant water conservation measures are beginning to pay off. Many companies use a closed-loop water system that captures, cleans and reuses water internally, reducing demand on municipal systems and minimizing pollution.
5. Low-Emission Transportation and Delivery
Getting your drinks at the store means they have traveled from the producer to storage and finally to your local seller. However, raw ingredients and packaging are also shipped to the producer, quickly adding to a significant carbon footprint. Some brands try to minimize their impact by using shorter supply chains, carbon-offset shipping and electric delivery fleets.
Planting a few trees is no longer good enough to claim a company is eco-friendly, and countries are more alert than ever to greenwashing. Green marketing laws like Canada’s Bill C-59 make greenwashing illegal under the Competition Act. These laws help consumers trust that when a company advertises its measures to cut back on transportation emissions, it’s real. Look for brands with lighter packaging to cut fuel emissions and locally sourced ingredients to reduce imports.
6. Circular Models and Upcycling Waste
Beverage waste is increasingly being upcycled, with spent grain and fruit peels becoming by-products in animal feed, biofuel and packaging materials. Toast Brewing is among the companies that are adopting innovative business models. It makes all its ale from surplus bread and redistributes profits to charities that support food security and soil conservation.
Support local businesses that turn imperfect fresh produce into cold-pressed juices. These low-waste circular models keep materials in use and out of landfills.
The Future Is Refillable, Renewable and Real
Sustainability in the beverage industry is more than a trend — it’s a full-bodied transformation. Brands are raising the bar with more innovative sourcing, renewable energy and rethinking waste and labeling. As a consumer, your choices matter. Whether you sip sparkling water or decant a local wine, you’re part of the shift.
