Editor's note: The following is part of a series of reports from The Packer's Sustainability Insights 2024, which aims to better understand growers', retailers' and consumers' involvement and market behaviors surrounding packaging, labeling, food waste, and sustainability. The annual survey was designed by Trust In Food — Farm Journal's sustainable ag division — and conducted and analyzed by Farm Journal Marketing and Research Intelligence.
Sustainability is important to retailers, with 74% calling it a primary or secondary priority for their businesses, finds The Packer's Sustainability Insights 2024 report. And from recycling to working to reduce food waste to implementing sustainable packaging solutions, retailers are also doing more to be sustainable. 
Retailers are motivated to be more sustainable for many reasons, according to the survey, which found that goals to reduce food and landfill waste, increased consumer demand for sustainably produced products, customers saying sustainability is priority for them, and legislative requirements were all factors upping the sustainability ante at retail.
Among the many motives spurring retailers' sustainable practices, up notably in 2024 were a desire to reduce landfill waste, up 12% to 30% versus 18% last year; increases in consumer demand for sustainably produced products, up 14%; and because it's a priority for retail customers, up 12%.
Doing more to reduce food waste
2024 saw accelerated food donation by retailers. Donation of food that would be wasted jumped 33% from 51% in 2023 to 84% in 2024. Goal-setting around food waste reduction is also on the rise, according to Sustainability Insights, which found that goal-setting increased by 17% year over year from 39% in 2023 to 56% in 2024.
Sustainable packaging
Sustainable packaging is top of mind for most retailers, with the survey showing produce purveyors think embracing biodegradable, compostable and recyclable packaging are all ways to have the greatest sustainability impact. This year's survey further found that retailer use of sustainable packaging is up 10% year over year.
Retailers look to address climate change in 2024
Addressing climate change is of increasing importance to the majority of retailers, with 52% of respondents saying it was of some importance to their sustainability priorities, up 13% from 39% in 2023. 
Retailers also think they'll need more strategies in place to address climate change.
Fifty-two percent said they expect to source produce from new places as a result of warmer growing conditions, compared with just 24% who indicated this expectation in 2023.
Meanwhile, 58% said they will have to offer different kinds of fresh produce based on changes in seasonal availability and weather conditions, up from 47% in 2023.
And 47% said they expect to increase prices because of severe weather events limiting available supply of certain types of fresh produce. This is up from the 35% of retailers who anticipated climate change-related price hikes in 2023.
Retailer concern over water's industry impact also grew in 2024. Only 5% indicated they were “not at all concerned” about water access, down from 16% who indicated a lack of concern in the 2023 survey.
Just over half of retailers surveyed, or 51%, have concern about water for crop production, up from 41% who indicated such concerns in 2023.
As to how water access will impact retail, Sustainability Insights 2024 showed fewer retailers uncertain of when water access might negatively impact their retail business. When asked “How soon do you think your retail business could be negatively impacted because of lack of access to enough water for crop production within your supply chain?” 14% indicated they were “not sure,” 19% fewer than the 33% who indicated “not sure” in last year's survey.
Additionally, markedly more, or 37%, think they'll feel a negative impact related to water access in two to three years, up 18% from 19% indicating so in 2023.
Greenhouse gas reduction
When it comes to greenhouse gas reduction, responses were mixed. A little more than half of retailers, or 54%, say they have set public goals for reducing greenhouse gas emissions, up from 50% in 2023.
And among those who do have public goals around greenhouse gas reduction, over half say they will announce goals within 18 months. But of those that don't have greenhouse goals, none plan to set targets in the future — a downward shift of 18% from 2023, Sustainability Insights 2024 found.
Cost and labor concerns
And while many retailers, or 47%, say cost is a factor inhibiting their sustainability efforts, cost cites as a barrier to implementing sustainability initiatives were down 28% year over year, according to Sustainability Insights 2024.
Additionally, more retailers now feel compensated for sustainability costs. Altogether, 70% indicated feeling at least somewhat compensated in 2024 versus just 49% in 2023. And in a meaningful new finding in this year's survey, 40% say labor is an obstacle to sustainability.
About Sustainability Insights 2024
The web-based quantitative survey was fielded to gain a better understanding of channel involvement and market behaviors surrounding packaging, labeling, food waste and other aspects of sustainability. It was conducted between April 10-19, 2024.
Respondents had to be 18 years or older, live in the U.S., and work in a food retail business. The majority, or 70%, of the retail survey respondents — hailing from across the country — are independent grocers, while 5% represent corporate-owned regional stores, 7% come from corporate-owned national chains and 19% are from “other” retail establishments. The majority of respondents are either owners (30%) or managers (42%).
Related
• View the entire digital edition of The Packer's Sustainability Insights 2024
• Growers, retailers and consumers show that sustainability is here to stay