Lux Research recently participated in the Transform Food and Agriculture USA conference, held in Minneapolis; the conference’s goal is to accelerate the resilience and sustainable transformation of global food and agricultural systems. The event brought together nearly 200 industry leaders, including corporate R&D and innovation executives, venture capitalists, startups, and representatives from the USDA. Uniquely, farmers themselves joined the conversation, providing a critical grassroots perspective. The conference revealed key tensions around transparency, the fear of taking action, and the uncertainties inherent in collaboration.
Three key conversations pervaded the event:
From Partnerships to Ecosystems
- A significant takeaway from the event was the need for the agricultural sector to shift from traditional partnerships toward broader, more inclusive ecosystems. This is not just about linking businesses; it’s about bringing all stakeholders — including farmers — into the fold to ensure trust and commercial viability using a regional approach. As Anna Pierce, Director of Sustainability at Tate & Lyle emphasized, sustainable solutions must be tailored to the specific needs of different regions. By engaging farmers early in the process, these ecosystems can deliver practical, scalable innovations.
- Peer-to-peer collaboration was another essential element of building an innovation ecosystem. In a fireside chat with Deepali Palta, VP of Innovation and Sustainability at Kellanova, we discussed building symbiotic ecosystems — with large corporations, startups, academic researchers, and growers all benefitting — that are vital for long-term success. Deepali introduced an example where Kellanova collaborated with its packaging supplier to develop the fully recyclable Pringle’s can, and as part of this collaboration, the supplier, rather than Kellanova, agreed to own the IP. This success highlights a key point in moving away from punitive measures toward incentives. Corporations need to “switch the stick for the carrot.” Ryan Locke from Nutrien Ag further reinforced this idea by proposing “open-source sustainability,” where companies share knowledge and breakthroughs for the collective good of the industry. This collaborative mindset is essential as the sector navigates its sustainability challenges.
Striving for Progress, Not Perfection
- Ecosystem initiatives are promising, but there’s an understanding that noncommercially viable, complex, and unfavorable outcomes will likely accompany the push for sustainable transformation. Several speakers emphasized the importance of embracing the idea of “progress, not perfection.” Companies must be willing to fail if they want to innovate; otherwise, they risk falling into “sustainability paralysis” — afraid to act due to fear of failure.
- Building on this fact, one of the more sobering discussions at the conference was around transparency and the inevitable shortcomings companies face in hitting their sustainability goals. Mars has already publicly acknowledged that it will likely fall short of several key targets, including a 50% reduction in unsustainable water usage by 2030 and its goal of achieving 100% reusable, recyclable, or compostable packaging by 2025. These setbacks, largely due to challenges in infrastructure and design, reflect a broader issue within the industry — progress is being made, but it’s slower than expected.
- Additionally, there is a growing recognition that companies must shift their focus from Scope 2 emissions (energy used by the company) to Scope 3 emissions (the entire supply chain). Emma Reynolds of Mars underscored that 96% of Mars’ emissions come from Scope 3 sources, meaning that without tackling supply chain emissions, companies stand no chance of meeting their net-zero goals. This reality highlights the interdependence of food and agriculture supply chains, making it clear that only through integrated, ecosystem-wide approaches can companies hope to reduce their carbon footprints to meet their 2050 targets.
Consideration for the Future Consumer
- While the focus of the conference was primarily on agriculture, the role of the consumer was a central thread throughout many discussions. As Deepali Palta pointed out, successful sustainable innovation needs to be at the intersection of the consumer need, the business need, and technology enablers. The Gen Z demographic, in particular, is increasingly demanding transparency and sustainability from the food they consume. Sarela Herrada from Eat Simply highlighted that Gen Z consumers are balancing taste with the broader implications of sustainability, signaling a shift in market expectations.
- This conversation was also linked to the rise of diet drugs (GLP-1s), with projections showing that up to 10% of the U.S. population could be using these weight-loss drugs by 2034. The increasing prevalence of these medications is expected to reshape consumer demand and behavior, further emphasizing the importance of understanding and responding to the evolving needs of future consumers.
- Innovation leaders must embrace a consumer-first, technology-driven path to transform the industry, build trust through transparency, and set a new standard for both sustainability and accountability.
Lux Take
The conference served as a powerful reminder of the immense responsibility the food and agriculture sectors bear in leading the charge for sustainability and the real hesitation in pursuing it, with growing concerns on greenwashing litigation. The potential for being accused of misleading consumers about sustainability efforts is real, and it’s stifling progress. This tension between wanting to innovate and fearing the backlash for missteps was palpable throughout the event.
The discussions on progress to date were sobering and delivered a stark message: We must do better. For leaders in the industry, sustainability cannot be viewed as a side project or limited to short-term targets; it requires a complete rethinking of how companies define success, innovate, and collaborate across the board. Sustainability must be embedded in the very framework of product development and strategic goals.
As the 2030 milestones loom, the message was equally clear on the need for better data practices and an unwavering commitment to transparency. Companies that prioritize investment in robust data collection and management today will be those best positioned to measure, validate, and communicate progress with integrity. This transparency will be crucial for building consumer trust and demonstrating the industry’s commitment to real, sustainable change. The road is long, but the work must begin now.
