Eco-Actives and Eco-Considers still account for nearly half of total spend on FMCG
Compromising with the planet
The impact of the economic challenge is clearly seen in terms of the proportion of Eco-Actives, Eco-Considerers and Eco-Dismissers. In 2022 the proportion of the first two groups declined so that Eco-Dismissers were in the majority (53%) in the region for the first time since 2019. The good part is that it is still above pre-pandemic levels.
This compares with a global breakdown that had just 44% of the population as Eco-Dismissers, although that percentage is also up compared to 2020 and 2021 when it was just 37%.
Nevertheless, combined the Eco-Actives and Eco-Considerers (47%) of the region constitute a sizeable market opportunity.
The picture is not uniform, of course, and while the decline is more notable in Brazil in Mexico, eco-positivity is still significant in many markets, notably Colombia where Eco-Actives and Eco-Considerers have both grown in 2022. Eco-minded groups are also in the majority in Argentina, Chile, Central America and Mexico.
As you would expect, movement between the different groups tends to be gradual, with Eco-Dismissers becoming Eco-Considerers before they become Eco-Actives and visa-versa, rather than moving dramatically between the extremes in large numbers.
Only 8% of Eco-Dismissers totally directly to the other extreme of the Eco-Actives. On the other hand, 30% of Eco-Actives do make an abrupt decisions, although a higher percentage of shoppers follow a more gradual path.
That’s why targeting Eco-Considerers as well as Eco-Actives should be considered as an effective way to engage more people and reach more of your consumers
Who are Latin America’s Eco-Actives
This most committed group has also altered profile considerably this year. They are more likely to be over 50 and more likely to live in medium-sized households (3-4 people), rising from 42% in 2021 to 50% in 2022. Notably even the number of high-income individuals has dropped, as has the number of smaller households.
The good news for all brands looking for a large audience to target is that the issues that concern Eco-Actives are increasingly the same as those that worry Eco-Considerers. Asked to name the most important UN Sustainable Development Goals, both scored clean water and sanitation highly, although Considerers put quality education even higher.
People still want to make a difference
For all the economic hardship, people’s willingness to make a difference remains strong. Making a difference is not just about money but also about time – researching alternative products for example, as well.
Sixty-one percent – rising to 71% in Central America – feel like they can make a difference through their actions. This compares to 39% – 54% in Colombia – who say they are willing to invest time and money to support companies doing good.
But many are sceptical about the motives of those who make the products and services they need. While Latam consumers are slightly less sceptical than the global average, 50% agree with the statement that companies only care about profits and green claims are just another marketing tool (53% globally). The figure rises higher among Eco-Actives in Latam (59%), Peru (62%) and Chile (65%).
One of the most direct actions available to consumers is around packaging and it demonstrates the stronger motivations and willingness to change among both Eco-Actives and Eco-Considerers.
Products that are packaged in an eco-friendly way and packaging made from recycled materials attract a majority of all respondents but people who are more willing to change behaviour pull the index up.
Brands that lead by example
The best performing sector regarding sales performance and value to the cause is the Hygiene and Beauty sector – named by 30% of respondents – for its actions in balancing the performance and value equation that is critical to uptake of more sustainable products.
In Latam, L’Oréal, for example, indexes 128 against Eco-Actives thanks to its efforts on water, waste management and recycled packaging combined with clear commitments and communication on its plans for 2030.
