ULRICK + SHORT highlights clean-label ingredient shift as European food makers tackle environmental pressures

Environmental pressures on Europe’s food manufacturers are increasingly shaping how products are formulated, with ingredient choices emerging as a central lever for reducing impact while maintaining performance.

• ULRICK + SHORT reported that environmental considerations have become a core driver in formulation decisions alongside taste, cost and functionality across European food manufacturing.

• The company outlined that clean-label and plant-based ingredients have been used to reduce processing intensity, simplify supply chains and lower environmental impact.

• It highlighted that manufacturers have balanced sustainability goals with product performance, ensuring taste, texture and cost have remained commercially viable.

In a recent article, originally published by ULRICK + SHORT, the company outlined how sustainability is moving beyond broad commitments and into day-to-day operational decisions. Climate targets are tightening, retailer requirements are becoming more detailed, and scrutiny of ESG reporting continues to intensify across the sector.

At the same time, consumer expectations are evolving. Ingredients described as simple, recognizable and minimally processed are no longer associated solely with health. They are also being interpreted as signals of environmental responsibility, even if the underlying science is not always fully understood.

For manufacturers, however, the challenge is more nuanced. Reformulating products to reduce environmental impact cannot come at the expense of taste, texture, shelf life or cost. The question is not whether to act, but how to do so without undermining product performance or commercial viability.

According to ULRICK + SHORT, ingredient strategy is increasingly where those competing priorities are being balanced.

Environmental considerations are now being treated alongside traditional formulation drivers such as flavor, functionality and cost. More than half of consumers reported taking environmental impact into account when choosing food and drink, while retailers have embedded carbon metrics and sourcing standards into supplier scorecards.

That shift reflected multiple forces acting at once. Regulatory developments, including growing attention on Scope 3 emissions and EU decarbonization targets, have pushed manufacturers to look beyond factory-level emissions and into sourcing, processing and logistics. Retailers, meanwhile, have applied more granular sustainability criteria that can influence both product listings and long-term supplier relationships.

Clean-label strategies have increasingly been used to navigate this intersection of regulatory, commercial and consumer expectations.

Often associated with the removal of artificial additives, clean label is now also being considered in environmental terms. Replacing chemically modified or synthetic ingredients with plant-based alternatives that rely on physical processing can reduce processing intensity and simplify supply chains. In some cases, this can lower energy use and reduce reliance on multiple inputs.

The cumulative effect of these changes is where the impact becomes more meaningful. Each ingredient carries its own environmental footprint, from cultivation and processing through to storage and transport. Complex formulations involving multiple stabilizers or additives can increase energy consumption and supply chain movements.

By contrast, simplifying formulations can reduce resource use across water, energy and logistics, while also lowering manufacturing waste. Although the impact of any single change may appear limited, applying these adjustments across multiple product lines can deliver more significant reductions over time.

Plant-based functional ingredients play a central role in this approach. Compared to animal-derived components, plant-based starches, fibers and proteins typically require less land, water and energy, while generating fewer greenhouse gas emissions.

These ingredients are not only aligned with shifting consumer preferences toward plant-forward products, but can also perform key technical roles in formulations. Starches, for example, can support moisture retention and yield in meat or fish systems, reducing the need for additives such as phosphates. Functional starches can deliver thickening and freeze-thaw stability without chemical modification, while plant-derived proteins and flours can provide structure and binding in plant-based applications.

In these cases, functionality is derived from the inherent properties of the plant, rather than through chemical intervention. This can support both environmental objectives and simpler ingredient declarations.

Transparency is another factor shaping formulation decisions. Ingredient lists are increasingly acting as a proxy for brand credibility, with familiar plant-based components often perceived as more trustworthy than complex or chemically modified alternatives.

However, ULRICK + SHORT emphasized that perception must remain aligned with performance. Reformulation that compromises texture, moisture retention or product stability risks undermining consumer confidence, regardless of sustainability claims.

The challenge, therefore, lies in ensuring that environmental positioning is supported by robust technical formulation. Manufacturers must balance sensory quality, processing requirements and cost structures alongside environmental metrics.

According to the company, reducing environmental impact does not require sacrificing performance, but instead depends on targeted ingredient replacement. Plant-based functional ingredients can maintain texture and stability while enabling simpler declarations, provided they are applied through careful formulation.

As sustainability continues to influence purchasing decisions, regulatory frameworks and retailer expectations, ingredient strategy is becoming an increasingly important part of how food manufacturers respond.