Sustainable Priorities
Understanding the eco-consumer’s compass
Consumers are increasingly seeking sustainable options, but they often struggle to make informed decisions due to a lack of expertise and understanding of sustainability concepts. How do we know this? It’s loud and clear in the answers people have given us this year, and in years past. Brands have an opportunity to educate consumers and provide clear, accessible information about their sustainable offerings. This is particularly important as consumers aggressively trade out of brands to private label in some markets, particularly in Europe, and as consumers tell us they think brands are using eco claims as a marketing tool in what amounts to “greenwashing”.
The bottom line for people is that recyclable packaging is table stakes, with 23.3% frequently choosing products with 100% recyclable packaging. Following this, concerns about ingredients intersect with sustainability, as people prioritise natural ingredients (23.2%) and locally sourced ingredients (23.4%). Animal welfare is also important, with 21.2% of people frequently choosing products that promote better farming practices, such as free-range options.
Brands have an opportunity to educate consumers and provide clear, accessible information about their sustainable offerings.
Brands should also be leveraging local credentials to provide further appeal to eco-conscious consumers. Examples come in France and Spain, where brands have aligned with Eco-Actives by successfully used local credentials to demonstrate quality and better conditions for people and animals. Local ownership is also a factor, with 23.3% of consumers frequently choosing products from locally owned companies.
Payson Breton in France is providing products with an emphasis on the brand’s origin, cooperative structure and recyclable packs. La Fageda in Spain shows how it is working with individuals who are at risk of social exclusion and emphasises how it provides a safe working environment and skills development.
However, consumers often struggle to understand complex sustainability concepts. For example, carbon neutrality is rarely chosen as a priority, with only 8% of consumers frequently choosing carbon-neutral products. This may be due to a lack of understanding of what carbon neutrality means (24%) or lack of availability (27%). Europeans and North Americans were most keen to buy carbon neutral products if available. The most wanted if available in Asia were products from companies that promote biodiversity, whereas in the Middle East and Africa region, people wanted donations to charity. In Latin America, they were seeking more fully organic products.
The bottom line for people is that recyclable packaging is table stakes, with 23.3% frequently choosing products with 100% recyclable packaging.
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Plant-based products have an important role to play in helping us reduce the carbon emissions that come from the meat industry and many manufacturers have invested in the market. We have also seen more challenges to the sector with Beyond Meat, a leading plant-based brand, seeing its market value drop in August to $981 million from over $10 billion in 2019. Has the backlash begun?
On a global basis, 24% of people say they would never buy meat or dairy alternatives. In some markets, the numbers are much higher and, on the rise since last year. In Great Britain it is 41% (38% in 2022). In the United States, it is 37% (33% in 2022). This is due to taste not meeting expectations, high prices compared to fresh meat, and concerns about the level of processing involved. Sales are softening along with the change in mindset in some markets, but it is not a consistent picture and, perhaps, not as dire as some new outlets have claimed.
In France, animal protein alternatives (including food and beverage) are showing 56.9% penetration (+0.1 vs. year ago) while in Spain meat alternatives are at 16.7% (-0.1%). The UK saw meat-free as a whole drop to 46.4% penetration from 50.4% a year ago and back to 2019 levels as retailers reduce their ranges. Meat Alternatives and Vegan was the area where we saw under 35s wanting more than the oldest group.