Report, Marketing and Advertising News, AND BrandEquity

Children are the most important influencing factors in making our daily shopping habits more environmentally friendly. Almost half of households (49%) say the COVID-19 pandemic has made sustainability even more important to them.

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.

Graph 1
Graph 1

Kantar also asked consumers to identify their main sustainability concerns and their main obstacles to sustainable action.

Eco-friendly buyers only make up 22% globally: report
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.

Eco-friendly buyers only make up 22% globally: report
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.

Kantar’s projection on India’s sustainability story indicates that $ 1 trillion is the projected economic benefit of going green for Southeast Asian economies by 2030 …

Source link


Leave A Reply