Trust and transformation
Twin pillars of eco-progress
We might expect the government to be the primary agent of change for the better when it comes to the environment. Indeed, on a global basis the expectations of governments is highest (40%), followed by manufacturers (34%) and consumers (19%). However, in Latin America, that expectation of governments is notably more subdued — (34%, down from 37% in 2022). It's not that the government is absolved of its role; rather, it finds itself sharing the stage of expectation with other key players — most prominently, manufacturers and (increasingly) retailers. The people we talked to across the region are expecting accountability and rebalancing how they think about it.
And it is retailers who find themselves at the epicentre of a shift expectations. They face escalating pressures to lead substantive change.
Let's put some country-level numbers to this narrative to give it the weight it deserves:
In Peru, the percentage of people seeing retailers as key players in sustainability has risen from 9% in 2022 to 11% in 2023—a 2 percentage point increase.
In Central America, it's a more dramatic shift—from 9% to 14% within a year, a sharp 5 percentage point uptick across these markets.
Brazil shows a similar trend, moving from 11% to 16%, another 5 percentage point rise.
Amidst the rising demands on retailers to do more, it appears consumers have become more circumspect regarding the role they play. Consumers, who once shouldered a hefty portion of self-imposed responsibilities, appear to be easing off the pedal. It's not apathy setting in, but perhaps a realisation that the onus of change doesn't rest solely on their individual actions but is a collective endeavour.
What we're witnessing here is not just a reshuffling of responsibilities but a profound transformation in consumer expectations and pressures.
Governments remain on the hook, but the spotlight is intensifying on manufacturers and, most interestingly, on retailers. And we're not talking marginal shifts; these are significant changes across the region that signal a broader trend.
So, as we navigate the complex maze of sustainability pressures, let's not lose sight of the evolving dynamics. It's a tale of shared responsibilities.
Let’s go deeper into those roles and responsibilities. As in many industry segments, trust matters in the FMCG space. In the world of FMCG, where choices abound and decisions are made in the blink of an eye, trust isn't just a value; it's the currency that fuels brand loyalty. When a consumer reaches for a product on a crowded shelf, they're not just choosing convenience; they're investing in a promise. A promise that the product is what it claims to be, that it meets the standards they've set, and that it delivers on the quality the brand has vowed to uphold.
This isn't just about transactions; it's about relationships. In a marketplace increasingly concerned with sustainability and ethical practices, the trust between a brand and its consumers becomes the cornerstone for long-term success. Lose that trust, and you're not just losing sales; you're losing your place in the community of socially-conscious shoppers.
If we accept this is true, here is what the region looks like when it comes to trust. It’s certainly a mixed bag, but there is clearly runway in all markets to find improvement. In Brazil, these numbers are particularly worrying when it comes to trusting brands not to unnecessarily raise prices.
To take the notion of trust a step further, consumers are also trusting brands to do the right thing. When they don’t, they walk away. We found that 44% of people stopped buying products due to their impact on the environment. And 50% expected companies and brands to offset their environmental impact. In an age where every choice carries ethical weight, this trust becomes the cornerstone for long-term success.
Boosting consumer engagement with education programs
Elevating retailer accountability
Simplifying product offerings to align with changing demands
Doubling down on eco-friendly products
