The number of conscious consumers has increased in Latin America to 6%, now representing USD 4 billion for the FMCG industry, meaning sustainable innovation and direct-to-consumer (DTC) communications about 'green credentials' are beneficial both to business and to the planet.
This figure carries a positive meaning these days; as we saw in a previous study, a little under 70% of all Latin Americans had their incomes reduced due to the pandemic.
Last year, we launched the first edition of Who Cares, Who Does?, our regional study to understand consumers’ attitudes and actions towards the environment.
This year’s report offers an updated follow-up in this area, as manufacturers and retailers look to ways to fulfil their commitments to clients and attract more consumers to them. Themes we will approach
1. Environmental concerns 2. Eco-actives, a group concerned and busy with green issues 3. Actions with consumers
What still makes this study unique is Kantar’s capability to compare the survey responses to data based on consumers’ actual behaviours – both concerning shopping and usage –, allowing us not only to know what people say about sustainability, but also associating behaviours directly to your brand and category.
By understanding the "say-do" between those who say they care and those who actually do something about it, we can leverage the opportunities related to environmental concerns and help brands gain, while playing an important role in the outline of our future planet.
Kesley Gomes
Latam Solution Director, LinkQ Kesley.gomes@kantar.com
Environmental concerns
We asked respondents about a list of environmental challenges to know the main concern en Latin America, and found out water still is the most important concern in the region; also, in the 2020 edition, food concerns such as food safety and food waste have become as important as deforestation.
It is important to note this survey was carried out between May and June, dates when mass media talked about the “blue skies” seen in several parts of the world during the pandemic, as well as the brushfires in Australia, and the Amazon – which all led the headlines. For that reason, there was great focus on those themes.
It is important to highlight consumers in Latin America have different priorities from those reported globally, where climate change comes in first – while ranking fourth in Latin America. Therefore, those differences in the main concerns in each region in the world suggest actions or communications should be localized.
Where we do find global agreement is on who may lead the control of, and limit, environmental damage.
Nearly all respondents point out the influence of the FMCG industry in this area, which comes in first. Although we are aligned in terms of who we believe the change agents are, it is mostly Latin American consumers who see themselves as being part of the difference in favour of the environment.
Concerning water, most respondents (44%) believe consumers have the primary responsibility for using it correctly, without waste – a sentiment that stands out in Mexico.
Companies also have an important role to play in caring for water (21%), by preventing waste during production of their goods, coming in second – and this opinion stands out in Chile and Colombia.
In this sense, we asked what actions manufacturers must take to control water waste, scarcity and/or contamination, and consumers want an accountable industry.
48% believe the first action would be to provide guidance and educate the population about how to use water properly.
Also, packages should be greener, using less water during manufacturing, as well as recyclable – for which reason it is also key to round off cycles, by offering collection points and recycling programs.
Amongst other points to highlight is the development of products that are easier to rinse and the offer of concentrated products, so that consumers use less water.
Consumers are increasingly more responsible; daily habits about which strong communication has already been made are more deeply engrained, such as closing faucets while soaping up showering or doing the dishes but concerning product usage there still is a major area of opportunity to be considered in the sustainable purchase and consumption journey. From the choice of products based on the amount of water required to rinse or the use of ecological cycles, there still is a long way to go.
Spending for each group
There is great expectation by consumers about who may help improve the current environmental situation, and there is a great opportunity to take a foothold of that market, since when asked about who is doing a good job for the environment, only 20% of all Latin Americans were able to mention some brand that currently has green actions and, when it comes to retailers, recall was even lower, as only 16% were able to identify a channel with green actions.
Although we have seen Latin Americans consider themselves change agents, not all have the same degree of involvement. In the region, the Committed already add up more than the Dismissers (53%), while Eco-actives (18%) have been gaining importance in this part of the world. Chile is the country with the highest percentage of that population, and in Colombia & Mexico that figure has increased remarkably.
Actions that should be considered in your plan.
Shoppers Choose them as your partners
Carbon Neutral Future Potential
Packaging Almost unanimous on environmental impact
Associations Working in a group is easier
Recycling Use to your advantage
Innovation Price cannot be a barrier
Natural Coverage of topics & opportunities
