Sustainable purchases show signs of decline amidst rising cost pressures on British households. But that doesn’t mean good intentions have disappeared completely. Kantar has identified vital connection points between what people say they will buy and what they actually buy when it comes to more eco-friendly products. And there is work to do.
Consumers identified as “eco-active”, the most environmentally conscious, have fallen to 2019 levels, and in Great Britain, only two of the top 10 eco-brands were growing in Q4 2022. However, the eco-actives group of consumers represent £29 billion in spending on fast-moving consumer goods (FMCG) in the UK.
Eco-friendly buying has been lost and will require brands and retailers to re-focus efforts. Kantar research shows consumers have shifted away from some of their eco-friendly aspirations as they, unsurprisingly, focused on the cost-of-living crisis as it pertains to their individual circumstances. The war in Ukraine has also been top of mind for many.
Consequently, environmental concerns appear to be taking a back seat, and more will need to be done if traction is not to be lost for those brands that have made inroads with products in this area.
For sustainable products, price has long been, and continues to be, a barrier to entry for some consumers. A review of the top 10 brands with eco-attributes found them to be, on average, 75% more expensive in their category.
But it is not just economic factors driving the shift away from more eco-friendly shopping. Kantar found that, even among the eco-active group of shoppers, there were concerns about the veracity of eco-friendly claims made by brands. Consequently, consumers were demanding more and appeared to be raising probing questions.
Fifty-three per cent of eco-active respondents in the Kantar Worldpanel Who Cares? Who Does? survey agreed with the statement that “all companies only care about profits and eco-claims is just another marketing tool.” Cynicism, headlines of greenwashing, and healthy scepticism are likely contributing factors.
Brands will need to urgently recognise these concerns and provide evidence their claims on the environment and sustainability issues are true. Losing the trust of “eco-active” shoppers — classically heavier buyers in these categories — could create longer-term damage given this cohort typically feeds on feelings of hope and optimism, especially if those feelings appear to have been undermined. Given that the eco-actives are the group whose members feel they are most likely to make a difference, other cohorts will be further away from engaging in eco-friendly shopping. A re-engagement programme may be necessary for brands committed to the eco space.
The opportunity around eco-friendly goods remains, but there is evidence that brands and retailers can make it much easier for shoppers by tapping unmet demand. Consumers tell Kantar that a common barrier is availability, particularly on refillable products such as household cleaners. This problem is compounded in cases where non-refillable packs of the same product are often available on promotion, making it more unlikely that shoppers will make an eco-friendly choice over a clear price advantage.
Barriers such as these will have a tangible impact on intention versus action. A means of mitigating the issue is by closely paying attention to timely changes taking place around shoppers. Kantar has found that changes in legislation or news headlines about local environmental challenges were often quick drivers of change in favour of eco-friendly purchasing.
Similarly, a review of global trends showed that whilst British shoppers were particularly attuned to plastic and animal welfare issues, they often lagged behind many other countries in considering the provenance of products when making purchases. Room for improvement.
An obvious area of opportunity for British brands would be to stress the value and provenance of locally produced products more overtly, particularly food such as meat, fish, fruit, and vegetables. Making this information obvious and transparent is something shoppers in most markets have been demanding.
