How Important is Sustainability to Consumers?

We live in a world that is now 1.5C hotter than during pre-industrial times, with severe weather events that result in profound human and financial costs. The World Health Organization declares this burgeoning crisis “the single biggest health threat facing humanity”.

Recognising the urgency of sustainable corporate action not only safeguards against supply chain disruptions and punitive legislation but also unlocks a profitable business strategy driven by growing consumer expectations and demand.

In response to this escalating threat, consumers and businesses alike are reevaluating their environmental and societal priorities and seeking sustainable solutions that benefit health, finances and humanity.

Reports from the Intergovernmental Panel on Climate Change (IPCC) reveal that household consumption accounts for 60-70% of global emissions, and that’s why we’ve conducted the Global Sustainability Report 2024-25 – covering 10 of the world’s most critical economies, tracking the spectrum of behaviours, attitudes and purchasing trends of 10,000 consumers, and benchmarked against data over a four-year period.

Our goal? To equip you with the cutting-edge data and expert insights needed to inform your marketing and innovation strategies and make your brand more resilient to the sustainability challenges ahead.

For this year’s Consumer Sustainability Study, our analysts have taken a closer look at the specifics of sustainability in the CPG industry. They provide an in-depth analysis of sectors including Food & Drink, Beauty & Personal Care, and Household Care. This offers a deeper understanding of the most effective tactics strategies that will make your brand’s products, services, and policies stand out.

The importance of sustainability to consumers is becoming increasingly apparent, as they feel increasingly engaged, threatened, yet helpless. We find that climate change deniers are in the minority (at 28%), as 49% of people report becoming increasingly exposed to – and activated by – extreme weather events.

The rising consumer awareness of sustainability and growing levels of engagement is as much about education as it is exposure. Four in ten participants surveyed attribute their increased understanding of environmental issues to eco-activism, leading to a more cynical view of corporate claims, specifically, carbon offsetting. Conscious consumerism is gaining traction, with over three-fifths of consumers expressing that they’d prefer for companies to reduce their own carbon emissions instead.

Our world leading Consumer Sustainability Study uncovers unexpected findings and busts some myths along the way. We find that whilst young consumers aged 16-24 are most likely to have joined a climate demonstration (10% have done) and twice as likely to be vegetarian (at 6%), their sustainability behaviours and belief systems regarding climate change are merely standard.

Interestingly, consumers aged over 55 exhibit the strongest levels of action and engagement towards sustainability. Two crucial factors likely drive this trend. Firstly, being older gives them a greater sense of perspective and secondly, their ownership of significant assets (namely homes and wealth), empowers them for such actions. They not only believe that their behaviours can positively impact the environment, but also take aligned action with their values.

Our Global Sustainability Report 2024-25 acknowledges traditional concepts like “Mother Nature” and explores gendered perceptions that often depict certain groups as more conscientious, and key household consumers. The survey found that respondents who identify as women show a greater awareness of sustainability issues and are six percentage points less likely to deny climate change compared to those who identify as men. They are also more likely by five points to believe that their country is suffering from climate change and four points more likely to believe they can make a positive difference through sustainable behaviours.

This heightened awareness may be linked to higher engagement in sustainability activities, such as recycling where they lead by seven points, and energy conservation during cooking, where they score an additional five-point lead. Furthermore, their conscious consumerism manifests in their diet, as they are four points less likely to consume meat regularly.

Evolving purchasing habits reflect the emergence of a more resource-conscious consumer – one who is increasingly concerned by food and water shortages and is seeking sustainable solutions that deliver both efficiency and value. This shift towards more conscious consumerism is seeing consumers embrace purchasing and lifestyle behaviours that reduce both consumption and waste, whilst maximising resources.

Despite slow rates of dietary behaviour change (vegetarians and vegans represent a static 5% of us), organics and meat/dairy alternatives have mainstreamed as fixtures in our weekly grocery baskets. Additionally, our global study’s data supports industry narratives around the escalating transition towards cleaner energy sources for homes and transport. As of 2024, over one-third of our research participants are sourcing their energy from renewable resources, with a noticeable increase in the adoption of home solar and heat pumps. A similar upward curve is seen in electric vehicle (EV) adoption, demonstrated in our tracking data with hybrid and full EV ownership and leasing on the rise, diminishing the hold of conventional petrol/diesel cars.

In 2024, our research reveals a decline in the proportion of consumers who believe that their “behaviour can make a positive difference to the environment”, down to 47% from 51% in 2021. In the same period, our insights have also seen sustainability factors like recyclable packaging and responsible sourcing are becoming less significant in consumers’ purchasing decisions. While there continues to be growing distrust of companies’ sustainable claims, this creates three key challenges that brands must address when positioning their less impactful and more responsible products and policies:

Our sustainability research sheds light on areas where consumers do – and do not – see the positive impact from their behaviours and that of brands. When surveyed, almost two in five engaged Beauty & Personal Care, Household and Food & Drink consumers believe that companies can do more than governments in driving global change. And despite consumers displaying some enthusiasm for upcycling, carbon capture, GMOs and nuclear alternatives, a quarter of engaged Beauty & Personal Care, Household and Food & Drink consumers find some environmental issues hard to understand. This signals a need for brands to gain consumer trust and position themselves as a genuine help on consumers sustainability mission through education, transparency and actionable guidance.

Over half of engaged Beauty & Personal Care and Household shoppers regularly check labelling on a product for information such as recyclability and over a third of engaged Food & Drink consumers check on-pack labels for details on the environmental initiatives supported by purchasing the product. This highlights the importance of clear on-pack claims and messaging to aid consumers to overcome their distrust and guide them towards more sustainable products. 

As consumers deprioritise sustainable considerations, marketers must strive to humanise the climate crisis and its solutions. Now more than ever, consumers need tangible proof of the positive impact sustainable products have on people in marketing communications, as well as a clear understanding of the wellbeing and economic advantages of sustainable choices.

Being a fundamental part of the problem also makes consumers key to the solution. Consumers are thinking like brands and businesses, perceiving sustainability as a public threat and a resource issue rather than an emotive, environmental one. This understanding guides them towards making healthier, and more efficient consumption choices. Our Global Sustainability Report equips you with the strategic insights to understand consumer sentiment in a sustainably conscious world, helping you create and adapt your marketing and innovation strategies to meet the evolving needs of your consumers.

Find out more about our Global Sustainability Report 2024-25 which will be available to download on Tuesday 3rd September 2024.

Contact our sustainability experts today to learn more about the report enhancements in Food & Drink, Beauty & Personal Care, and Household Care categories, including our custom-made Consulting presentation.