Eco Actives are worth $12billion to the Latam FMCG industry – and they´re set to represent 43% of the regions population share in 10 years. Let´s explore their shopping behaviour.
Brands can create a sustainability positioning at every stage of the usage journey, from purchase to end of life. Messages that demonstrate credible action in any area can attract Eco Actives to your brand.
It’s vital that brands take action because in almost every segment we look at Eco Actives over-index when it comes to purchasing. From Haircolouring products in Colombia (9%) to laundry bleach in Chile (19%), from Pet Products in Costa Rica (36%) to milk in Mexico (20%) and from Mouthwash in Colombia (13%) to olive oil in Peru and Costa Rica (both 35%), these are the people who will drive market share and revenue.
Brand penetration among Eco Actives in Ecuador is indexing at 153%, higher than the national average among all shoppers. The market opportunity is already large and will only grow as Eco Actives become an even bigger proportion of the population over time.
The words that consumers say do not always match their actions but many are planning to make behaviour changes around key sustainability concerns.
In Colombia, 54% are planning to limit their water consumption in the year ahead, compared to just 21% across the region. In the same country 18% will wash their clothes at a lower temperature more often, compared to just 8% across the region.
Other specific actions that are likely to translate into real action and a commitment to take advantage of re-usable products, with consumers in Chile and Brasil both beating the regional average.
Similarly, there was a strong commitment to reducing home electricity consumption in Colombia (59%) and Brasil (50%), both well above the regional average of just 22%. In Ecuador, pledges were made to limit car use, with 35% planning to drive less in the year ahead compared to a regional average of just 7%.
Chile stands out as the country where demands for real action are strong, outperforming the regional average in a host of areas, ranging from packaging that can be recycled or is made out of recycled material to demanding organic food and better animal welfare. It is also the strongest scorer when it comes to better labelling on recycling and zero carbon labels.
Consumers say there is no one group that bears ultimate responsibility for delivering a more sustainable present and future. Everyone has a role to play, from retailers to consumers and manufacturers to governments.
The degree to which our respondents think each group should take action varies from 2020 to 2021 – consumers and governments need to take more action – and by country across our region.
Retailers are held responsible most in Brasil (6%), consumers are the key group in Mexico and Costa Rica (both 42%), while government action is most essential in Brasil (46%) and manufacturers should make most changes in Colombia and Ecuador (37%).
While retailers are not being blamed for the challenges faced by consumers who want to take action, there is still scope for them to do more. Indeed, many consumers are demanding that they make it easier for them to more. Regional variations on this score are massive, with the percentage of people satisfied with current retailer activity ranging from 27% in Brasil to 60% in Mexico.
There are also other tests that consumers now place on retailers when they select their retailer of choice.
Consumers now have much stronger opinions about which retailers are helping them act more sustainably. In 2020 just 16% of Latam respondents could answer the question “Is there a retailer that does a lot for the environment or society?” This year the number with an opinion rose to 42%, demonstrating the growth in Eco Actives and environmental awareness as a whole.
The winner in 2021 was Jumbo, with Aki and Lider in second and third place respectively.
Companies that meet the needs of Eco Actives and Eco Considerers will win in the new, sustainability-aware retail marketplace. Already these considerations are having an impact on the choices that consumers make. Sixty-four percent of all shopper groups have stopped purchasing a product/service with a negative impact on the environment at least once and the figure is 73% in Chile.
On a more positive note, 68% of all consumers have switched to comparable products/services that have a positive impact. Once again, the figure is even higher in Chile at 79%.
We asked consumers to name what makes them think a brand is doing good for the environment. What are the actions that matter when they make their brand choices?
The other area we focused on was what makes them think a brand is doing good for society – reflecting Latam’s focus on the broader UN SDGs.
