To mark World Earth Day today, FMCG consumer data firm Levercliff has released research that shows despite environmental concerns being widely acknowledged by shoppers, it is the rising cost of living impacting decisions made at the supermarket till.
For 71% of consumers, value for money is the influential factor impacting product or brand choice, and rising prices are a top concern for 41% of people, in comparison to climate change being a top concern for just 8%.
Levercliff’s research found that when shopping for food and drink, 36% of consumers’ choices are mainly driven by needing to stick to a budget, looking for the best value and offers. An increase from 24% in October 2021. This is compared to only 6% of people who stated their choices are principally driven by whether products have been produced responsibly. And it’s a worry affecting all age groups, regardless of socioeconomic status.
However, it’s not all doom and gloom when it comes to sustainability. Almost 50% of consumers chose sustainable packaging in food and drink as a top priority, with key focuses on making all packaging recyclable (17%), reducing unnecessary packaging (16%), and eliminating plastic packaging altogether (15%). And with 48% of people judging whether a product was produced responsibly by how sustainable the packaging is, when looking to create new products or update existing lines, the research suggests manufacturers should make packaging a clear consideration to help gain a competitive advantage in a busy market.
What’s more, reducing food waste to limit environmental impact is high on the agenda. 45% of respondents are also buying only what they need to cut down on leftover food, and 39% eat more leftovers to have the same effect. The move towards plastic-free continues to be a key trend, with 39% of people also buying loose fruit and vegetables where they can.
Fintan O’Leary, Managing Director of Levercliff, commented: “Over the relatively short period from October 2021 to March 2022, our data clearly shows shoppers are increasingly feeling pressure to make their money go further, and this is being reflected in buying habits across food and drink, with less of a focus on sustainability, and an increased focus on cost.
“Taking inspiration from this year’s World Earth Day theme of ‘invest in our plant’, we see a real gap in the market for solutions which both look after our planet and support consumers in their wallets. Further investment in sustainable packaging, or products with minimal packaging, is essential, and products being seen to deliver value for money will succeed across the board.”
NAM Implications:
- Well, what do you know!
- 71% seeking Value for money still represents early days of what is to come…
- …via high inflation and short supply.
- With trust playing a key role?
- Meaning that suppliers and retailers attempting to disguise price rises via shrinkflation…
- …do so at their peril!
