Ethical Living: Mindful Consumerism

Megatrends

About This Report

Nov 2017

Increasing awareness around ethical and environmental issues is driving the rise in mindful consumption. Although interest in ethical living is higher in emerging markets, it is still developed economies that lead the commercialisation of sustainability and have high value ethical labels markets. Recycling is by far the biggest selling ethical claim with increasing focus on waste recovery. The new frontier of ethical consumption is integrating into all aspects of consumers’ lifestyles.

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Ethical Living: Mindful Consumerism

Environmentally conscious mind-set

The movement is more progressive in emerging markets, where a higher than global average ratio of consumers is seeking ways to make positive decisions about what they buy and avoiding solutions that add to the negative impact consumerism is having on the world.

Developed markets spend more on ethical labels

While emerging markets show lots of interest in ethical consumerism, it is the developed economies which show strong value sales growth of mainstream ethical labels. There is a perception amongst many consumers in emerging markets, that local products carry inherent environmental characteristics but which are not commercialised as ethical labels.

Recycling label is most common and most trusted worldwide

In retail value terms, over 70% of sales of ethically labelled food and beverages carry a recycling label. “Recycling” is the most common and most trusted among green label. However, recyclability of packaging may not be an influential purchasing factor, more of a post-purchase consideration

“All natural” and “Clean label” resonate with consumers

“All natural” and “Clean label” claims, such as “Hormone free”, “Non-GMO” and “No artificial” stem from concerns around wellbeing and are important contributors not only to ethical but also healthy living trends. The importance of these concerns varies country by country and is more pronounced in nutrition.

Demand for eco/ sustainable services lower than for products

While there is increasing maturity in the eco/ethical space for products with the myriad of similarly positioned offerings on all “ethical” platforms, eco services is still a relatively novel concept. Business models focusing on services with strong ethical credentials still enjoy a period of low competition.

Three A’s drive responsible consumption

Awareness, availability and affordability drive consumers’ interest in ethical living. However, consumers still rank features such as efficacy and value as the main driving force behind their purchases.

Introduction

Megatrend analysis at Euromonitor International
Megatrend framework
Ethical Living is one of the eight key megatrends
Ethical consumer: key findings
Greening society
Everyone is going “green”?

Who is the Ethical Consumer?

More environmentally conscious mind-set in emerging markets
Consumers’ ethical values mirrored in their shopping attitudes
Ethical living sparks interest at later age in developed markets
Education and parental status broadly impact ethical consumption
Environmental considerations grow in line with income
The typical ethical consumer

What are Ethical Consumers Buying?

Developed markets continue spending on ethical labels
Interest in ethical consumption versus actual value sales
Consumer spending on ethical food and beverages
Recycling label is most common and most trusted worldwide
Waste management identified as one of eight main ethical trends
Waste recovery through recycling: established yet inconsistent
Some complexities in packaging recycling call for joint efforts
Innovation in plastic can help recycling but also creates challenges
Ecover : green product in greener packaging
Procter & Gamble: scaling up development of beach plastics recycling
Diversity in shades of green: key ethical considerations
Belif : seeing is believing?
“Clean labels” define consumer priorities in nutrition
Capri- Sonne : reformulation, is the squeeze worth the juice?
“All natural” appears to be influential product feature industry-wide
Environmental/eco features score high in home and personal care
adidas: cleaning the world’s oceans
Demand for eco/sustainable services lower than products
Soneva Kiri Resort: slow life philosophy

Drivers of Mindful Consumption

Three As to drive responsible consumption
Digital media drive awareness
Volkswagen: social media backlash against emissions scandal
Availability of brands combining ethics and efficacy to do well (1)
Availability of brands combining ethics and efficacy to do well (2)
Availability of brands combining ethics and efficacy to do well (3)
Natural/organic positioning helps combine health and ethics
Lush: brand excitement and ethics delivering impressive results
Ethics can add to value perception of goods
Awareness: dedicated websites to help make ethical choices

Conclusion

Future of the ethical industry
Sustainable packaging will continue to dominate “ethical dollar”
Ethical consumer: what you need to know
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