of consumers tried to have a positive impact on the environment through their everyday actions in 2021¹

Sustainability is shifting consumption habits across the world, as more people become aware of the impact their behaviour has on the environment – and take greater steps to counter it. According to one report, two thirds of consumers globally tried to have a positive impact through their everyday actions in 2021.¹ What’s more, 62% of consumers in a global survey said they are willing to change their purchasing habits to reduce their environmental impact.²

Businesses are already feeling the benefits of this well-established shift. Between 2015 and 2019, 55% of growth in consumer-packaged goods market came from sustainable brands even though they only accounted for 16% of the products. What’s more, sustainable options can now command a price premium of around 39%.³

While there are plenty of opportunities for businesses hoping to reach these increasingly environmentally conscious customers, there are challenges too. Consumers hold businesses to a high standard when it comes to sustainability. And in many cases, consumers’ sustainability efforts involve buying less, buying second-hand, or borrowing goods; for businesses this could mean rethinking their whole relationship with customers.¹

There is still a gap between consumers’ attitudes – what they say they are going to do – and behaviours – what they actually do – when it comes to sustainability.⁵ For example, research by IBM found that half of consumers said they would be willing to pay a premium for sustainable brands, but just 31% said that their last purchase was for sustainable or environmentally responsible products.²

…of UK consumers have actively chosen brands that have environmentally sustainable values, while 28% have stopped purchasing certain brands because they have sustainability-related concerns.⁶

…of new cars purchased in Norway in 2021 were electric.⁷

…of U.S. consumers are already spending more on products that are sustainable and better for the environment.³

…of consumers in China will always choose a sustainable option when making purchasing decisions – the highest proportion globally.⁸

…of consumers in India say they try to act in a way that is not harmful to the environment.⁹

…of Brazilians have made a total or significant lifestyle change to become more sustainable in the past five years.⁸

…the amount the organic food market will grow by in Asia-Pacific region in the next five years, more than any other region.¹⁰

Food

Preference for sustainable goods is leading to growth in markets around the world. The global organic food market, for instance, is set to grow at more than 12% per year until 2027, to hit a value of $416bn.¹⁰ Similarly, the market for plant-based foods is predicted to reach $162bn by 2030, up from $29.4bn in 2020.¹¹

Apparel

Euromonitor named “pursuit of preloved” as one of its top 10 consumer trends of 2022, citing that 33% of consumers are already buying used or second-hand items every few months.¹ The market for ethical fashion is expected to hit $15bn by 2030, growing at a rate of 9% per year.¹²

Beauty and personal care

The organic and natural cosmetics market continues to grow year on year and is predicted to reach $54bn in 2027, up from $34.5bn in 2018.¹³ And that’s not the only indicator that consumers are seeking sustainable options in this product category: market research company Mintel highlights the sustainable innovations happening in this sector – such as waterless beauty products and refillable packaging options – to meet the demand of sustainability conscious consumers.¹⁴

Electric vehicles

Global sales of electric cars hit 6.6 million in 2021 and accounted for 9% of the total car sales that year – up from 2.2 million cars representing 2.5% of the market in 2019.⁷ In Europe, sales of electric cars grew around 70% in 2021. In Germany they accounted for a quarter of new car sales – higher than other large European markets such as the UK and France (both around 15%).

Sustainable options still need to be competitive

While consumers often say they are willing to pay more for sustainable products, figures also show that for many, the price premium of is still a barrier to purchasing. One survey found 35% of consumers said they would be more likely to buy sustainable goods if the price was comparable to other products. Meanwhile, 32% said better quality of products would sway them.² That suggests that sustainability alone is not enough to convince consumers to buy your product – it has to be high quality and at the right price point, too.

Make sustainability a core part of your marketing

According to Facebook figures, posts from e-commerce companies about sustainability received 7.7 times more interactions than other posts by e-commerce companies. There is a similar trend for consumer-packaged goods brands, too – posts by brands in this sector that featured sustainability related hashtags received 4.2 times more interactions than the average.¹⁵ While sustainability alone may not motivate people to buy, it could help to build your business’s presence on social media and help to engage a community. Consider how to build it into your messaging online. But be careful not to claim more than you achieve when it comes to sustainability. It’s important that your business lives up to its promises on sustainability, or you could run the risk of damaging trust in your company.

Consumers influence other consumers

According to research in Harvard Business Review, consumers are more likely to adopt a sustainable behaviour – including buying sustainable products – if they know other people are doing the same thing. For instance, one business found that telling its online shoppers other people were buying sustainable products led to a 65% increase in customers making at least one sustainable purchase. Similarly, people were more likely to buy solar panels if their neighbours had done so.¹⁶ Consider framing messaging in your marketing and on your website to highlight how others have adopted the new behaviour.