Brands cannot afford to take sustainability concerns for granted. The time to act is now. But what are the actions to take that will create a competitive advantage and help brands thrive?
Shape and sustain the collective momentum
With the sustainability news agenda waning, brands must keep a foot on the pedal with greener choices and ensure that moments of collective interest are not wasted. While the number of Eco Actives are lower than last year, these shoppers still comprise a vast segment of the FMCG industry (worth over $376 billion per year globally). To tap into this audience, brands must be willing to lead the charge on more sustainable choices.
Concern on the environment and awareness of the need for action is still broad across the globe. We have seen when governments make new laws, or the media conversation shifts, there is a direct impact on how people think and act on sustainable choices. New brands are constantly emerging, offering better prices and challenging traditional formats and brands resting on the status quo will be caught out.
For brands to really move the needle, they must reposition greener choices from marginal alternatives, to mainstream shopping staples.
Eco Actives are your early adopters
Eco Actives have a strong track record in identifying brands in the market that have a sustainable proposition in terms of better packaging, local sourcing and natural ingredients. We know that health benefits and environmental sustainability are a powerful combination for earning consumer loyalty and this is especially true for Eco Actives, who consistently buy brands at this intersection. By meeting these two considerations, products will appeal to a substantial proportion of consumers.
But to do this effectively, brands must be bold enough to place importance on both considerations and not shy away from the multiple benefits of sustainable products. We have seen with Heura how highlighting nutritional value and taste alongside the environmental impact of switching to meat-free alternatives has cut through the noise in Spain and achieved high growth and market penetration.
Consumer appetite for these products is clear – but to benefit, brands must claim this space now and meet shoppers in how they pursue sustainable options. Understanding Eco Actives better can give brands a head start on which products and formats will perform better with the wider population.
Innovate to inspire conscious change
Your product meets the right sustainability criteria with shoppers, you have analysed the market opportunities, but what is stopping you from cutting through consumers’ consciousness and winning brand loyalty? Quality and price.
Looking at meat-free alternatives, only 20% of shoppers choose plant-based products because they make for tastier meals. In home care products, only 19% believe that products containing natural ingredients are more effective at cleaning.
And with 45% of shoppers stating they have found it harder to act sustainable recently due to financial constraints, it is only natural that people are choosing cheaper, more effective, or tastier products.
The stalling growth in refills shows the challenge where the current offering is not meeting enough needs to move to the mainstream, but also how innovation can move the sector forward.
New formats and lower price points are driving penetration for brands across the world, not just in the US and Europe, such as the example we saw earlier of Godreij Protekt Mr Magic in India. It’s clear the opportunity is global. It’s up to brands to develop the right products. Are they up to the challenge?
