Sustainability has not disappeared from people’s minds despite the shockwaves caused by COVID-19 and the economic downturn.
In fact, as our data has shown, it has become more important with an increase in Eco Actives (+4%) and a decrease in Eco Dismissers (-8%).
The FMCG industry needs to continue to look for ways to make local communities cleaner and healthier by reducing waste and energy output and support the creation of recycling facilities for plastic. Communicating actions directly to the consumer needs to be done clearly and consistently. However, shoppers are not willing to pay more for ‘green’ as they see it as the responsibility of an industry that should be leading this initiative.
These are the key considerations for FMCG manufacturers and retailers when thinking about how to meet consumer demands.
Packaging
1. Plastic waste is still the second biggest concern globally and growing (+0.8%) 2. 100% recyclable packaging is the option that works best for the most people, but recognise this is less acceptable across Asia and LatAm where lack of facilities means it will end up in landfill 3. Consider biodegradable and options other than plastic, but beware of some negative associations, particularly of biodegradable.
Marketing
1. Eco Actives are worth $382 billion to FMCG brands and should be the starting point of your targeting 2. People expect leadership from manufacturers, but are not seeing it with only one in five able to name a manufacturer doing it well 3. Green launches are subject to marketing principles and need to be advertised to consumers, stocked widely, and priced competitively to deliver high sales 4. Brands that do sell well and command a premium communicate their eco credentials across more than just packaging 5. Communicate to younger generations. Older consumers are most active in reducing waste, but are also influenced to change by younger people.
