The current business landscape requires transparency and accountability, with consumers seeking alignment with sustainable values. To succeed in this climate, companies must address concerns around sustainability and affordability.
64% of global consumers are worried about climate change, while 41% complain about price being the main barrier to sustainable purchases
Source: Euromonitor International’s Voice of the Consumer: Sustainability Survey, fielded in January-February 2023 (n=40,691)
Euromonitor International has identified 12 types of sustainable consumer. This report provides insights into the top five global Sustainable Consumer Types, leveraging data from Euromonitor International's Voice of the Consumer: Sustainability Survey.
Understanding these consumer types is key for companies to craft effective products that resonate with the right audience.
Here are three out of the five key takeaways from Euromonitor International´s Megatrends: Understanding Sustainable Consumers 2023 report.
An eco-anxious Generation Z seeks out circular solutions
Generation Z is leading the charge when it comes to environmental awareness, with many expressing eco-anxiety about the future of the planet. However, despite their strong beliefs, Gen Z-ers are limited by price. This means that they are looking for affordable ways to reduce their environmental impact. Second-hand shopping is one trend that is set to endure among zoomers, as a third of them intend to increase second-hand purchases.
By embracing circular solutions, such as buying second-hand, Gen Z is able to access premium brands at a fraction of the cost. While Europe and North America dominate the circular market, the real pulse of consumer engagement beats in Asia Pacific and Middle East and Africa.
Optimistic consumers demand more sustainable options in developing markets
Consumers in developing markets such as Latin America, Asia Pacific and Middle East and Africa are also embracing sustainability, despite their limited budgets. The report identifies three key groups of sustainable consumers in these markets: Zero Wasters, Meat Avoiders and Green Spenders. These groups are committed to reducing their environmental footprint and are looking for sustainable product options.
FMCG companies that can provide affordable, sustainable products in these markets have attractive penetration opportunities. The lack of sustainable product options is a major consumer concern, so FMCG companies that can fill this gap are likely to be successful.
Consumers desire and trust claims, especially more specific ones
As consumers become more aware of the impact of their purchasing decisions, they are looking for companies to prove their sustainability claims. Adding backed-up product claims is an efficient way to communicate sustainability and educate consumers. The report notes that the more specific the claim, the more it will resonate and engage with consumers. FMCG companies that can provide detailed information about the sustainability of their products are likely to build trust with consumers. This is particularly important for younger consumers who are more likely to be eco-anxious and want to make informed purchasing decisions.
28% state unclear labelling as a main barrier to sustainable purchases
Source: Euromonitor International’s Voice of the Consumer: Sustainability Survey, fielded in January-February 2023 (n=40,691)
As consumers become more aware of the impact of their purchasing decisions, sustainability will become an increasingly important consideration. Therefore, companies that can embrace circular solutions, offer affordable sustainable products in developing markets, and provide detailed sustainability claims are likely to succeed in the coming years.
Learn more about Sustainability in our report, Megatrends: Understanding Sustainable Consumers 2023, and visit our Sustainability page for further insights into where to play and how to win with sustainable claims.