From product wins to portfolio transformation: the business case for circular design for food

Circular design for food strengthens financial resilience in several ways. Across the businesses we spoke to, three themes stood out:

Regenerative productionRegenerative productionRegenerative production provides food and materials in ways that support positive outcomes for nature, which include but are not limited to: healthy and stable soils, improved local biodiversity, improved air and water quality. is key to farm-level resilience and future supply security, but it can only scale if there is strong, consistent market demand for the crops it produces. CDFF helps create that demand by expanding the range of ingredients used in products and portfolios. Agreeing longer-term contracts also gives suppliers the security to invest in regenerative practices. Together, these shifts help de-risk the transition for farmers and build portfolio resilience for companies by diversifying their ingredient base and reducing exposure to climate and supply risks. 

As Franck Saint-Martin, Environmental Impact Manager, Global Public Affairs and ESG Engagement, from Nestlé put it: “Regenerative agriculture was initially pursued to meet climate targets and net zero ambitions, but it’s now clear that it is equally about supply chain resilience. As climate change disrupts yields and challenges the reliability of existing supply chains, investing in scaling up regenerative agriculture practices as well as crop diversification is essential to sustaining business and securing access to raw materials for the future.” 

Regulatory readiness is another critical dimension of financial resilience. What was once voluntary is fast becoming mandatory, with real financial risks attached: disruption, fines, or even loss of market access. Big food and agriculture companies are increasingly accountable for what happens through their supply chains, and exposed to tightening disclosure requirements on emissions, land-use, and biodiversity.  Circular design strategies address the outcomes regulators are targeting – emission reductions, nature regeneration – ensuring businesses remain investable and competitive. 

As exposure to physical and regulatory risks becomes more transparent, insurers and lenders are also starting to price resilience in. Businesses able to demonstrate lower supply and climate risks through circular and regenerative design can, in some cases, access preferential lending terms or lower insurance premiums — a tangible financial reward for risk reduction.

First-mover advantage is emerging as a defining differentiator for businesses. Retailers are setting ambitious climate and sourcing commitments, and they want partners whose products can help deliver them. Companies that act early can secure stronger partnerships and reinforce brand positioning. Waitrose’s partnership with Wildfarmed is a case in point: it advanced Waitrose’s sustainability goals and reinforced its brand values while giving Wildfarmed a platform to bring regenerative agriculture to consumers nationwide. As Danone’s Roxane Clement, Global Dairy Category Sustainability Director, put it: “If we’re not first to market and capturing the benefits of a new proposition, whether from a retailer or consumer perspective, that potential loss becomes an integral part of our business case.”

Circular design creates value on both sides of the ledger. By upcycling by-products into high-value ingredients, businesses not only unlock new revenue streams but also reduce waste costs. Tetra Pak, for example, has developed a process to transform brewer’s spent grain – once used for animal feed – into a high-protein ingredient representing a USD 3 billion opportunity by 2030. Brands like Rescued are showing how this approach works in everyday categories, upcycling tomatoes and bread into new products that reduce losses for retailers, create new income streams for farmers, and create new product lines. 

By cutting costs and creating revenue, circular design builds a healthier bottom line.