Eco Actives are a huge market that brands are under servicing. But how big is the opportunity? And is it worth the investment?
A race against the climate clock
The dip in the percentage of Eco Actives reduces our expectations for growth for the group compared to previous years. To gain a more comprehensive idea of how this segment might grow, we have created two projection scenarios: one optimistic, the other pessimistic. Both these views predict a rise in the number of Eco Actives over the next five years. The most pessimistic scenario assumes that the growth in the previous two years was largely boosted by the pandemic lockdowns and slower ways of living. The optimistic scenario assumes that this year is a blip due to the war and a significant increase in levels of global inflation.
The climate crisis is not an issue that is going away, as a society we must reduce plastic waste and find ways of taking sustainable action. There is, however, significant headroom between peoples’ aspirations and their actions. With more support from governments, retailers, and brands we can close the gap and beat the climate clock.
Success stories France and Colombia
Two countries that saw their number of Eco Actives grow and Eco Dismissers decline were France and Colombia. These markets both have a higher-than-average concern around climate and environmental issues compared to the global population.
The issue of waste management and reduction is still being covered extensively in local media and this is a result of active government legislation coupled with momentum from brands and retailers. The fact that this remains front-of-mind in these countries means consumers are more compelled to act.
Governments in both countries have introduced new laws banning a significant number of single-use plastics which has generated public and local media discourse. In France rules such as ensuring drinking water is available in public places has had the desired knock-on effect of more people carrying refillable containers. It's one of the only countries to see more people using refillable water containers – up by 5 percentage points compared to 2021.
But governmental activity is not working alone. A major initiative making the plastic reduction case more visible is through the work of Grupo Exito in Colombia, a department store company who are working with Unilever to launch recycling facilities in at least 18 sites across five cities (their SOYRE initiative). This has raised the profile of recycling and has made positive action on sustainability more accessible for many people.
How good intentions are a great opportunity
We are still seeing a large value-action gap when it comes to packaging.
The majority of people still have good intentions – which means there is a lot of headroom to be made in helping people to close this gap. This offers brands an opportunity. If we look at plastic packaging, 62% of people are trying to buy environmentally friendly packaging, yet only 24% are regularly avoiding buying plastic. There is a clear unmet need, with 38% of shoppers wanting to do more.
This value-action gap is worth $991 billion to the FMCG industry.
In many supermarket categories, people have no real alternatives to unrecyclable soft plastic. In times of economic hardship and high petrol prices, it becomes even more challenging for people to be shopping around different stores to find plastic free or refill products. Many retailers are simply not stocking this type of product. In essence, consumers want to do more. And brands are now perfectly placed to help meet this need. To make plastic-free alternatives more available and more cost-effective. To consider refillable packaging. To create recycling initiatives and recyclable products. The need is there, and the stage is set. Will brands seize the opportunity?
