Study Shows Consumers Switching to More Sustainable Products; Mike Johnston Details
NEW YORK, NY - What have you done lately to let consumers know you are a sustainable brand? According to a recent report on sustainability in the food and grocery segment, you should be asking this question often. Produced by Glow and NIQ, the report provides sustainability benchmarks for the United States food and grocery industry, stating that one in two consumers have changed brands based on environmental, social, or governance considerations.
"Social and environmental performance is critical even in an economy with rising cost of living. Now more than ever, if brands want to retain and win consumers, they must stand for something," comments Mike Johnston, Managing Director Data Products, Glow. "All consumers are looking for ways to save money. They will need a compelling reason why they shouldn't walk away from your brand for a cheaper alternative! Along with quality, sustainability is a key barrier to change, especially for Millennials."
Glow's proprietary Social Responsibility Score (SRS) assesses consumer perceptions of brand Environmental, Social, and Governance (ESG) performance and is based on 33,000 respondents and their views on over 150 brands collected from April to December 2022.
The benchmark report shows consumers are changing brands to better align with their values and are switching to brands with the strongest perceived sustainability credentials, according to a press release. The report states that 85 percent of consumers believe it's important for businesses to act responsibly when it comes to society and the environment.
One in five consumers rank sustainability as a top three decision criteria, with one-in-10 millennials rating sustainability as their most important decision criteria in selecting food and grocery brands, the report stated. The report found that across seven out of the 10 departments measured, at least one in 10 consumers reported sustainability as the main reason they are not trading down in that area.
Overall, the food and grocery industry was seen to be a leader in ESG practice, ranked second out of 20 industries measured in the research behind supermarkets/convenience stores.
For more from the report, click here.
How can the fresh produce industry increase its focus on ESG practices? Stick with us to find out.