23rd November 2020
Sustainability concerns in Australia 2020
Introduction
There is a growing number of consumers who are concerned about the state of the environment and the impact that modern lifestyles and globalization is having on natural resources. These concerns are not a new trend; however, consumers are starting to feel that the environment is at something of a tipping point and that the damage done is irreversible. This has led to a change in consumer mindset that protecting the environment is not just the responsibility of big businesses but a collective effort between a brand and the individual. However, this being said, are consumers seeking brands that offer sustainable initiatives and how desirable are these claims?
Consumer Concerns
FMCG Gurus consumer insights show that in Australia 78% of consumers stated they are concerned about the current state of the environment with 46% suggesting that the damage done is irreversible. This highlights that a large proportion of consumers in Australia believe that the environment is at a tipping point and change needs to happen before it is to late. This concern has led to a number of consumers to change their lifestyle in order to lead a more sustainable lifestyle.
One way in which consumers have adapted their lifestyle is by looking to adapt their dietary habits. FMCG Gurus research shows that 47% of Australian consumers state they have changed their diets in the last 2 years in order to be more environmentally friendly. Key changes consumers have made are eating more fresh food and drink (45%), made greater attempts to reduce food waste (75%), and turned to more local foods (67%).
Environmental Claims
Across food and beverage products 54% of Australian consumers believe that environmental claims are important when purchasing products. But what claims are Australians looking for when purchasing FMCG goods? FMCG Gurus research shows that the top 3 claims/pledges Australians look out for are;
- Less Plastic – 78%
- Non-GMO – 76%
- Reduced Carbon Footprint – 73%
Claims can be very influential to a number of consumers impacting their decision-making process. This is highlighted as across these claims six in ten consumers state these have a high influence on their buying behavior. This suggests consumers are actively seeking environmental claims and are wanting brands and manufacturers to also be highlighting these pledges on product packaging. Not only do these claims have a high influence on consumer purchasing habits, but consumers are also likely to pay premium prices for them. FMCG Gurus consumer insights show that 54% of Australian consumers would be willing to pay premium prices for less plastic packaging claims, this being replicated across a number of environmental claims.
Trust & Recommendations
Sustainability is a key area for many consumers and although consumers are expecting and seeking out environmental claims from brands and manufacturers, it is important that they are seen as being clear and transparent. This is crucial as 35% of Australian consumers state they have become less trusting of brands. Therefore, brands must show transparency when addressing environmental claims and what pledges they plan on making.
For more information on FMCG Gurus 2020 Sustainability Survey series, please click here.