Who Cares, Who Does, a new study by Kantar, finds that the percentage of ‘eco-active’ households has increased from 16% in 2019 to 22% in 2021. Family, mostly children, has been identified as the biggest influence ( 36% of respondents) after packaging the product, in the change of habits.
The global study segmented households into three categories based on their actual behavior: Eco-active (22% of households) – Buyers who are very concerned about the environment and making the most of actions to reduce their waste, eco-recitals (40 percent of households) – Buyers worry about the environment and plastic waste but do not take much action to reduce their waste and eco-distributors (38 percent of households) – buyers who have little or no interest in the environment and do not take any action to reduce waste.
The study found that the eco-active segment has grown by six percentage points over the past two years, to represent 22% of global households. Kantar predicts that this segment will reach 40% of all households in the next five years, and more than half of households by 2029.
Kantar estimates that FMCG / CPG purchases by Eco-actives will total $ 446 billion in 2021, up $ 70 billion from 2020, and predicts that this segment will reach $ 925 billion by 2026 – a CAGR of 15.7%, more than five times faster than the grocery store market as a whole.
Germany has the largest segment of eco-assets – accounting for 46% of households in 2021, followed by Belgium and Hungary. With only 7% of households, Saudi Arabia is the country with the lowest penetration of eco-assets.
There is a direct correlation between GDP per household and the prevalence of eco-active households (see Figure 1). Among the most economically advanced countries, the Netherlands and the United States have the lowest incidence of eco-assets.
Kantar also asked consumers to identify their main sustainability concerns and their main obstacles to sustainable action.
With many brands already focusing on their sustainability credentials, consumers already have a sense of which brands are doing so much for society. The top 10 brands recognized by consumers for their environmental and societal impact are shown in the table below.
Guillaume Bacuvier, Managing Director of Kantar’s Worldpanel division, said: “Eco-actives drive the growth of brands that adopt sustainable strategies. As a segment, the eco-active market will grow five times faster than the entire grocery market. Therefore, creating a competitive advantage through your sustainability strategy represents a major opportunity for brands. Successful businesses will reap the rewards; those that do not take action risk turning away growing numbers of buyers. Two-thirds of all buyers have stopped buying a product or service that has a negative impact on the environment at least once.