However, when considering a purchase, consumers are more likely to value durability and repairability over recyclability or biodegradability. Compared with 2022, more consumers are taking into consideration durability and repairability, and whether products are labelled as responsibly sourced or manufactured, or support biodiversity, when making a purchase.
One interesting emerging trend is consumers’ interest in real-time carbon footprint data. According to our research, one in six consumers (16%) believe measurable carbon footprint data is a core part of what makes a product or service sustainable, and 11% will make a purchase decision based on carbon footprint data availability. More transparency around the carbon footprint of products and services is one way to address consumers’ need for more information (see section on what consumers need) and could lead to a better understanding of the direct climate impact of consumption choices.
Which, if any, of the following do you think makes a product or service ‘sustainable’? And how important, if at all, are each of the following when you are considering purchasing a product or service?
Frequently-purchased and essential purchases, such as groceries and personal care products, stimulate consumer interest in sustainable and ethical values the most. Discretionary purchases, such as alcohol and tobacco, hospitality and entertainment, and major purchases like cars, generate less interest. Financial services are also less likely to attract interest when it comes to considering sustainable or ethical values.
For consumers, sustainable packaging scores high for grocery products, while reducing waste and a product’s carbon footprint are valued more when buying major household appliances. Consumers also pay attention to ethical working practices and human rights issues when they shop for clothes and footwear, or when eating out.
Which, if any, of the following environmentally sustainable or ethical practices do you value for each of the following types of goods or services?
However, more needs to be done to convince the one half of consumers who are either not willing to pay more for sustainability or are unsure whether they would. Those consumers might hold the view that sustainability should be built in as standard and not be a choice. However, sharing better information around the impact that different consumption choices have on the environment will be needed to support a change in consumer behaviour, including encouraging more consumers to opt for the more sustainable options even if they carry a premium.
Would you be prepared to pay more for goods and services to ensure the brands that create them commit to any of the following environmentally sustainable or ethical practices?
Looking back at 2023, the majority of retailers across the globe will reflect on the headwinds they faced with soaring inflation rates, subdued consumer confidence and spending. However, for some, the tailwinds caused by advances in the exponential growth of technology far outweigh any of the challenges they have faced.
While winning approaches to 2024 may revolve around fundamentals like price, volume and mix, consumer products leaders will also likely confront newer challenges like generative AI, weight-loss drugs or emerging regulations. Learn more in our 2024 consumer products industry outlook.