Mintel Sustainability Barometer 2021 - CONSULTING - Cdurable.info
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Mintel Consulting provides custom deliverables to meet our clients’ sustainability briefs. LANDSCAPING FORESIGHT CREATIVITY SOCIALISATION VALIDATION Objective: Know your Objective: Future-proof Objective: a list of what Objective: Achieve a Objective: Maximise customers and competition your business you offer/provide and sustainable culture impact and investment clients receive What we will do: What we will do: What we will do: What we will do: Run consumer research segmentation Leverage our framework of macro What we will do: Deliver inspirational C-suite, Test your product and service studies to reveal purchasing drivers drivers, consumer trends, 100 weekly Facilitate co-creation workshop conference key note kick-off ideas with qualitative concept and use our GNPD database to track innovation observations, consumer data sessions structured around a presentations and panel discussions groups. Build, conduct and analyse product launches and claims. Conduct trackers and patent analyses to quantify framework designed to cover all in person —or virtually— with our bespoke consumer research surveys social media listening surveys to the world of 2030 and beyond. consumer needs. Render design expert speakers and analysts. to spec. Use survey benchmarking measure consumer conversations. prototypes. Concept debrief against your consumer panels to What you will get: presentations evaluating potential in What you will get: track product launches What you will get: A trends framework quanitified with the context of the current consumer Sustainable thinking activated, and performance. Reports, presentations and databooks data-driven projections to help you and product market. communicated and cascaded revealing white spaces in product navigate the risks and opportunities internally to ensure it runs through What you will get: markets, new consumer groups to ahead and ensure that you remain What you will get: every part of your business. Initiatives and launches target and the best strategies for relevant. Inspirational, early signal Propositions quanitified by data, pre-validated by consumer analysis reaching them. showcases of the products and services forged to meet consumer needs and and evaluated by ongoing market that will mainstream in future. evaluated against the competition. product tracking thereafter. Find out more: mintel.com/mintel-consulting
3 CONSULTING ‘We’re trying to sell peace, like a product, you know, and sell it like people sell soap or soft drinks.’ - John Lennon, 14th June 1969
Welcome to the Mintel Content Sustainability Barometer 2021 Simply ‘doing good’ wasn’t enough to actionable consumer insights and get people to buy sustainable goods expert recommendations that—when and services fifty years ago, and combined with other credible market, PART ONE that’s still the case today. environmental and policy data—help companies and brands make better, Consumer beliefs The truth is that while consumer sustainability-driven decisions about and behaviours choices are integral to reducing the future of their business and its inequalities and emissions (being impact on society. linked to 55% of the cumulative reductions needed by 2050 You’ve taken the first step by reading according to the IEA, for instance), this introduction, but the real lessons they’re driven by much more than begin in the pages that follow: altruism alone. We need data to namely, how to better appeal to help us figure out how else to get our consumers and sell sustainability policies and products to resonate with to align with their understanding, people if they are to accelerate us expectations and sense of self. PART TWO towards a better and more Challenges equitable world. Mintel is here to help you—your policies, products and services—be for companies As the experts in what consumers credibly and profitably sustainable want and why, Mintel has launched as quickly as possible. We hope this a new Sustainability Barometer to report gives you some new ideas. track consumer behaviours, purchase If you’d like to build on those and/or preferences and attitudes regarding create new ones, please get in touch sustainability and to offer lessons with your Account Manager to be learned from best-in-class or contact Mintel Consulting. innovations, communications and campaigns. It provides valuable and Best wishes, PART THREE Approaches Richard Cope for success Senior Trends Consultant
PART ONE PART TWO PART THREE Consumer beliefs and behaviours Challenges for companies Approaches for success Consumers seek protection from climate change Consumers’ environmental concerns nderstand consumers’ characterisation U and touchpoints Figure 1:1 Ownership of and interest in air conditioning ................................................ 8 Figure 2:1 Consumers’ top enviromental concerns ............................................................ 30 Figure 1:2 Current and potential share of homes with air conditioning .............. 9 Figure 2:2 Share of annual GHG emissions by sector ...................................................... 31 Figure 3:1 How all vs sustainable consumers describe themselves ...................... 50 Figure 1:3 Ownership of and interest in air purifiers ......................................................... 10 Figure 2:3 Movement of carbon between land, Figure 3:2 The differences in how sustainable consumers atmosphere and oceans ............................................................................................. 32 describe themselves ......................................................................................................... 51 Figure 1:4 Current and potential share of homes with air purifiers ........................ 11 Figure 3:3 What European sustainable consumers are driven by .......................... 52 How consumers’ concerns match up with emissions There’s still time to make a difference Educate on impact Figure 2:4 Consumers selecting air quality (e.g. exhaust fumes, industrial Figure 1:5 Consumers’ sense of optimism and impact ..................................................... 13 emissions) as a top three environmental concern .................................... 34 Figure 3:4 Consumers’ sense of climate change by country Figure 2:5 Consumers selecting deforestation, loss of biodiversity or and total GHGs ...................................................................................................................... 55 Sustainable purchasing now and in future chemicals entering the environment (e.g. pesticides) as a top three environmental concern ......................................................................... 36 Sell in the science Figure 1:6 Most important factors for consumers when choosing Figure 2:6 Consumers selecting plastic pollution (e.g. ocean plastic) to buy one product over another ........................................................................... 15 as a top-three environmental concern’ ............................................................ 37 Figure 3:5 Consumers agreeing that ‘science can provide Figure 1:7 Most important factors when choosing one at-home Figure 2:7 Consumers’ attitudes to climate change ......................................................... 38 solutions to the climate crisis’ ................................................................................... 57 coffee product to buy over another .................................................................... 16 Figure 1:8 EV ownership and potential ....................................................................................... 17 Solutions consumers think will save the planet Use clear metrics and language Figure 1:9 EVs’ share of all cars owned and car Figure 2:8 Environmental solutions perceived by consumers Figure 3:6 Factors that would encourage consumers to buy products penetration level, 2021 Europe ................................................................................ 18 as having ‘high to moderate impact’ .................................................................. 41 or services that claim to benefit/protect the environment ............... 59 Figure 1:10 EVs’ share of new purchases considered Figure 2:9 Consumers selecting deforestation as a top three Figure 3:7 What encourages consumers to buy products or services in the next 1–3 years in Europe ................................................................................. 18 environmental concern ................................................................................................. 42 that claim to benefit/protect the environment ......................................... 60 Figure 1:11 Home solar panel ownership and potential .................................................. 19 Figure 2:10 Consumers perceiving planting new forests as having ‘high to Figure 1:12 Current and potential share of homes with solar panels .................... 20 moderate impact’ and percentage of land covered by forests, Europe, by country, 2021 .............................................................................................. 43 Sustainable behaviours and their drivers Figure 1:13 Sustainable behaviours in the past 12 months .............................................. 22 Figure 1:14 Transport behaviours in the past 12 months ................................................... 23 Consumers hold companies responsible Figure 1:15 Who consumers think is most responsible for sustainability issues ........................................................................................................... 25 Figure 1:16 Types of companies ranked ‘most responsible’ for protecting the environment ............................................................................... 26
Consumer beliefs and behaviours 01 Consumers seek protection 04 Sustainable behaviours from climate change and their drivers 02 There’s still time to 05 Consumers hold make a difference companies responsible 03 Sustainable purchasing 06 Key takeaways now and in future
8 CONSUMER BELIEFS AND BEHAVIOURS | Consumers seek protection from climate change CONSULTING Beyond any concerns voiced, FIGURE 1:1 a clear indication of just how seriously consumers are taking climate change and pollution Ownership of and interest in air conditioning is the proportion of them expressing an interest in buying air conditioning units and air purifiers in the future. 5% 11% 11% In this context, global warming 9% creates a vicious circle by 26% 20% 29% increasing demand for air 19% conditioning, which then uses more energy. Aspiring to have 23% 20% air conditioning is a practical reaction to—and recognition 53% of—climate change, as well as 93% an indication of how protection, 82% 81% 81% comfort and a desire for higher 44% 66% 66% 63% 23% 62% 29% living standards are major drivers 52% 51% 30% that cannot be disregarded in 21% positioning sustainable products. 26% 23% 18% 13% 12% 11% China S Korea USA Japan Australia Thailand Canada India Italy Spain Brazil France Ireland Poland Germany UK Currently have Do not have but interested in purchasing in the future Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
9 CONSUMER BELIEFS AND BEHAVIOURS | Consumers seek protection from climate change CONSULTING FIGURE 1:2 Current and potential share of homes with air conditioning 30% 100% Air con penetration 2021 % Canada 82% 63% Ireland U.K. 47% 18% Poland 42% 11% China Japan Germany 58% 13% 98% 93% 92% 81% 33% 12% S Korea U.S. India 91% 81% France 93% 82% 91% 62% 46% 23% Italy Thailand 91% 71% 51% 93% 66% Spain 71% 51% Brazil Australia 79% 26% 86% 66% Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
10 CONSUMER BELIEFS AND BEHAVIOURS | Consumers seek protection from climate change CONSULTING FIGURE 1:3 Demand for air purifiers illustrates how seriously people are taking pollution as a threat Ownership of and interest in air purifiers to health. Again, it underlines the general importance of self-preservation and health as key drivers for the future uptake of environmentally beneficial 22% products, not just those designed to counter threats. 26% 38% 46% 26% 29% 36% 70% 32% 35% 52% 42% 47% 47% 62% 48% 69% 46% 30% 40% 28% 39% 31% 26% 21% 21% 18% 16% 16% 13% 10% 8% China S Korea India Japan Thailand USA Canada Australia Poland Ireland Spain Italy UK Brazil Germany France Currently have Do not have but interested in purchasing in the future Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
11 CONSUMER BELIEFS AND BEHAVIOURS | Consumers seek protection from climate change CONSULTING FIGURE 1:4 Current and potential share of homes with air purifiers 30% 100% Air purifier penetration 2021 % Canada 67% 31% Ireland U.K. 62% 21% Poland 48% 16% China Japan Germany 73% 21% 92% 70% 72% 46% 40% 10% S Korea U.S. India 68% 39% France 88% 62% 86% 48% 34% 8% Italy Thailand 91% 63% 16% 86% 40% Spain 65% 18% Brazil Australia 82% 13% 61% 26% Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
02 There’s still time to make a difference
13 CONSUMER BELIEFS AND BEHAVIOURS | There’s still time to make a difference CONSULTING In most countries, a small majority still believe that we We’re talking to the wrong people have time for redemption, and that optimism is closely related to a sense that consumer behaviours can make Marketers are fixated and focused on Millennials as the core That hasn’t yet translated into strong ownership of big-ticket, the difference. For brands, the opportunity here is to sustainability target market, but almost without exception the high-impact products like solar panels for the home or electric become the chosen partners of those consumers looking 55+ segments agree most strongly that their behaviour ‘can vehicles (both of which are accented towards 25–34s), but to make a difference. The challenge thereafter is for make a positive difference to the environment’. Over 55s’ potential interest in both—while slightly below average— brands to maintain those relationships by proving what scores are at least six percentage points higher than presents an opportunity, especially when we consider the difference they’ve made and reporting back on average across all markets. superior spending power of over 55s generally across our that impact. featured countries. FIGURE 1:5 Consumers’ sense of optimism and impact 65% 64% 63% 63% 63% 64% 62% 62% 59% 59% 56% 56% 55% 54% 56% 55% 55% 54% 53% 51% 51% 52% 51% 50% 35% 47% 47% 49% 15% 42% 44% 37% Brazil Spain Canada Italy China Thailand Poland UK France Ireland S Korea India USA Germany Australia Japan If we act now we still have time to save the planet My behaviour can make a positive difference to the environment Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
03 Sustainable purchasing now and in future
15 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable purchasing now and in future CONSULTING Now: FMCG staples FIGURE 1:6 When purchasing fast-moving consumer goods (FMCG) Most important factors for consumers when staples, consumers do consider choosing to buy one product over another sustainability factors. When asked to choose their top five considerations when making FMCG purchases, consumers typically select two or more related to sustainability when purchasing coffee, soap or socks. These priorities often lean towards Coffee Soap Socks packaging considerations, as do consumers’ concerns (Figure 2:1), when in reality resource impact might be greater. 31% 30% 43% 35% 33% 31% It comes in minimal or It was produced in It does not contain It comes in minimal They don’t contain They come recyclable packaging an environmentally ingredients/chemicals or recyclable materials that are harmful in minimal friendly way that are harmful to packaging to the environment (e.g. or recyclable the environment (e.g. synthetic microfibres packaging microplastics or glitter) or dyes that might be released during washing) Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
16 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable purchasing now and in future CONSULTING Now: Red lines FIGURE 1:7 consumers won’t cross This data is equally useful in showing Most important factors when choosing one at-home that consumers won’t compromise coffee product to buy over another on quality or brand familiarity in the name of sustainability. A product’s positioning should never discount the It is made from high quality ingredients ‘pleasure principle’. Looking at the example of coffee, we should never 36% forget that a sustainable coffee is first and foremost a coffee. It must deliver pleasure, taste and quality It is from a brand that I have bought before before anything else. Likewise, sustainability is important when 35% it comes to packaging, but the practical, fundamental elements are just as crucial. The cardinal It comes in minimal packaging or packaging that can be recycled rule of packaging should be that it protects the product and secures its shelf life so that the energy and 31% other resources that went into its production aren’t wasted. It was produced in an environmentally friendly way (e.g. without causing deforestation) 30% The packaging makes it easy to keep the product fresh (e.g. is air tight/resealable) 30% Note: Coffee is defined as ground beans, pods or instant granules. Base: 500 internet users aged 16/18+ Source: Dynata/Lightspeed/Mintel, March 2021
17 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable purchasing now and in future CONSULTING Future: FIGURE 1:8 Electric vehicles EV ownership and potential Ownership of hybrid and fully electric vehicles (EVs) remains weak outside northern Asia, but the proportions of people who are ‘realistically interested in buying in the near future (i.e. in the next 1–3 years)’ are huge. Entry-level costs and the rate of technological change are current obstacles, but the potential market share of EVs in Europe is significant (Figures 1:8 to 1:10). 70% 52% 47% 53% 61% 52% 53% 24% 44% 38% 41% 30% 39% 35% 27% 27% 23% 19% 15% 15% 12% 11% 10% 9% 8% 3% 2% 7% 7% 6% 6% 6% China Japan India Ireland S Korea Australia USA Thailand Canada Brazil Spain UK France Italy Germany Poland Owns EV now Do not own but interested in purchasing in the future Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
18 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable purchasing now and in future CONSULTING FIGURE 1:9 FIGURE 1:10 EVs’ share of all cars owned and car EVs’ share of new purchases considered in penetration level, 2021 Europe the next 1–3 years in Europe 30% 100% Car penetration 2021 % U.K. Ireland Ireland 66% U.K. 69% Poland 19% 78% Poland 9% 69% Germany 50% Germany 3% 65% 57% 4% 67% France France 61% 8% 78% Italy Italy 80% 7% 89% Spain Spain 73% 18% 8% 84% Base: 500 internet users aged 16/18+; Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021 Source: Dynata/Lightspeed/Mintel March 2021
19 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable purchasing now and in future CONSULTING Future: Home solar panels FIGURE 1:11 Ownership or usage of solar panels in Home solar panel ownership and potential consumers’ main homes is also low, but again the potential is strong. In all but a couple of Northern European countries, India 43% 50% 7% the proportion of people expressing an interest in purchasing solar panels in the Australia 38% 35% 27% future exceeds those with no interest in doing so. China 24% 56% 20% What factors can help solar Thailand 24% 61% 15% power grow? Ireland 18% 58% 24% The aspiration to own or use solar panels is driven in part by climate change USA 16% 46% 38% feeling tangible and local. Those who believe that the country they live in is Italy 15% 58% 27% suffering from climate change are more likely (by five percentage points on Japan 12% 31% 57% average) to be interested in purchasing solar panels in the future. S Korea 12% 56% 32% In terms of touchpoints, interest in owning Germany 12% 38% 50% solar panels also increases (by four percentage points) among those who UK 11% 48% 41% ‘like to be among the first to try new technologies’ and to a lesser degree Poland 11% 54% 35% (by two percentage points) among those who ‘have a budget that I try to stick to France 9% 32% 59% as much as possible’. Spain 7% 67% 27% As with EVs, brands need to appeal more to these sentiments if aspiration is to be Canada 6% 53% 41% converted into ownership. Brazil 5% 80% 15% Base: 500 internet users aged 16/18+; Currently own Do not have but interested in purchasing in the future Do not have and not interested in purchasing in the future Source: Dynata/Lightspeed/Mintel March 2021
20 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable purchasing now and in future CONSULTING FIGURE 1:12 Current and potential share of homes with solar panels 40% 100% Solar penetration 2021 % Canada 59% 6% Ireland U.K. 76% 18% Poland China Japan 59% 11% Germany 65% 11% 80% 24% 43% 12% 50% 12% S Korea U.S. India 62% 16% France 68% 12% 93% 43% 41% 9% Italy Thailand 91% 73% 15% 85% 24% Spain 74% 7% Brazil Australia 85% 5% 73% 38% Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
04 Sustainable behaviours and their drivers
22 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable behaviours and their drivers CONSULTING Simplicity and frugality FIGURE 1:13 The most popular behaviours are Frugality also informs attitudes to those that are simple and frugal, food waste, with meal planning Sustainable behaviours in the past 12 months in other words, where consumers increasing significantly amongst can have a positive impact those consumers who also state ‘I by following straightforward have a budget that I try to stick Recycled packaging processes or by cutting back on to as much as possible’. Growing spending. Where they do spend food, however, is a behaviour their money or time, there is a based on experience as much 60% clear bias towards initiatives with as economics. What’s more, a strong human—and not just Mintel’s characterisation studies environmental—component (see Figure 3:1) confirm that Returned packaging (e.g. retailer bags) to a store to be recycled or benefit. sustainable consumer groups are more likely than average to agree Recycling (at kerbside) is the that they’re ‘actively seeking 55% most commonplace sustainable ways to reduce stress’ and that behaviour, closely followed ‘experiences are more important by returning packaging to to me than material possessions’. stores. There is a stark cultural Bought fewer new clothes contrast between Asia-Pacific Abstinence costs nothing, and and European markets in rates reducing consumption is one 52% of ‘returning’ versus ‘recycling’ way for people to reduce their packaging, but the relationship emissions and conserve resources. with the retailer is key. Accepting The success of fashion resellers returned packaging is the clearest like Depop (18 million users and Planned meals at home to avoid wasting food and most popular example counting) is built on their appeal of companies partnering with to a combination of consumers’ 52% consumers on an issue they feel sense of individuality, authenticity concerned about and fulfilling and sustainability, and Mintel’s consumers’ desire to make characterisation studies (see a difference with their Figure 3:1) confirm that a key tenet behaviour (Figure 1:5). of sustainable consumer groups is Base: 500 internet users aged 16/18+; that they ‘like to stand out from Source: Dynata/Lightspeed/Mintel March 2021 the crowd’.
23 CONSUMER BELIEFS AND BEHAVIOURS | Sustainable behaviours and their drivers CONSULTING Health FIGURE 1:14 Despite reports that people are turning once again to cars and taxis, the biggest shift in Transport behaviours in the past 12 months transport behaviours has been towards micro-mobility and zero-emission modes of transport. Consumers who agree that ‘it’s important for me to lead an active lifestyle’ 42% are more likely to have adopted more environmentally friendly transport behaviours in the past 12 months, thus reinforcing the observation that many sustainable behaviours 26% are driven by self-preservation and the urge to 24% protect oneself. This ethos of ‘good for me, good 20% 19% for the planet’ suggests that sustainable products and services should appeal to people’s desire to feel—and look—in good health. 8% Walked more often Cycled more often Travelled by public Used my/my household’s Started cycling Used taxis more often instead of taking transport transport more often car more often Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
05 Consumers hold companies responsible
25 CONSUMER BELIEFS AND BEHAVIOURS | Consumers hold companies responsible CONSULTING Issues FIGURE 1:15 Consumers hold companies most Who consumers think is most responsible for sustainability issues responsible—i.e. more responsible than governments or themselves—for a host of environmental and social Reducing the of use of fossil targets and standards. A big majority fuels for energy (e.g. coal, gas) of consumers hold companies most responsible for increasing recycling A Reducing emissions from slight majority hold them responsible 60% vehicles (e.g. exhaust fumes) for ensuring fair conditions and pay 50% for workers and for reducing emissions Increasing use of from road and air transport. Even on 40% renewable energy issues where a minority of consumers 30% hold companies most responsible, Reducing emissions 20% from aircraft/flying they still amount to almost a fifth of respondents. 10% Increasing forestation (e.g. planting more trees) 0% Stopping pollution entering rivers and seas Conserving clean water supplies Increasing the amount of packaging that is recycled Reducing investments in companies/industries that rely on fossil fuels Ensuring fair conditions and fair pay for workers Companies Consumers Government Promoting equality (i.e. in relation to gender, race and/ or sexual orientation) Base: 500 internet users aged 16/18+; Note: social questions not asked in China Source: Dynata/Lightspeed/Mintel March 2021
26 CONSUMER BELIEFS AND BEHAVIOURS | Consumers hold companies responsible CONSULTING FIGURE 1:16 Sectors Companies—especially those in Types of companies ranked ‘most certain sectors such as transport and household—are being held responsible’ for protecting the environment accountable for their action. Failure to react to this reality will ultimately hit their bottom lines. Passenger transport companies (e.g. airlines, taxi, rail companies) 44% Household product manufacturers (e.g. cleaning products, toilet paper) 39% Packaged meat, poultry and/or fish manufacturers 35% Packaged drink manufacturers 28% Other packed food/drink manufacturers 25% Retailers (e.g. supermarkets, online retailers) 23% Skincare and haircare product manufacturers 18% Make-up product manufacturers 17% Dining venues (e.g. restaurants, coffee shops) 15% Note: Figures for ‘any rank’ for question Please rank 1-3, where 1 has the most responsibility; Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
27 CONSULTING Key Takeaways 01 02 03 04 The huge proportions of Consumers still feel they can Are we talking to the wrong Consumers buy staple consumers aspiring to buy ‘be the change’—but only people? Marketers are products sustainably, but they air conditioners and air just. The opportunity here is fixated and focused on have ‘red lines’ and won’t purifiers confirms their for brands to become the Millennials, but consumers’ compromise on quality or belief in climate change chosen partners for those sense of personal impact brand familiarity in the name and pollution, but it also consumers looking to make increases with age. of sustainability. demonstrates the importance a difference. of ‘non-sustainable’ considerations, like well-being, as key purchasing drivers. 05 06 07 08 Consumers are gearing up The most popular sustainable Consumers hold companies Some companies are to invest in bigger-ticket behaviours are simple, frugal most responsible for deemed more accountable sustainable home and or healthy. increasing recycling and than others, especially transport purchases. at least as responsible as passenger transport governments for ensuring companies, household fair conditions and pay for product manufacturers and workers and for reducing packaged meat, poultry or emissions from air transport fish manufacturers. and vehicles.
28 CONSULTING Challenges for companies 01 Consumers’ environmental concerns 02 How consumers’ concerns match up with emissions 03 Solutions consumers think will save the planet 04 Key Takeaways
01 Consumers’ environmental concerns
30 CHALLENGES FOR COMPANIES | Consumers’ environmental concerns CONSULTING When consumers are asked to FIGURE 2:1 select up to three environmental concerns, it’s unsurprising that Consumers’ top enviromental concerns the concerns that are the most tangible (climate change), threatening to one’s health (air quality) and visible (plastic Climate change/global warming 53% pollution) are out in front by some distance. Consumers Air quality (eg exhaust fumes, industrial emissions) aren’t environmental scientists, 52% and, with their current levels of understanding, these factors will Plastic pollution (eg ocean plastic) 52% always precede considerations around GHG emissions when it comes to ranking their concerns. Deforestation 40% Waste pollution (eg landfills) 40% Water shortages 40% Chemicals entering the environment (eg pesticides) 38% Loss of biodiversity on land (eg species extinction, loss of wildlife habitat) 30% Loss of biodiversity in the oceans (eg species extinction, loss of wildlife habitat) 30% Food shortages due to drought or crop failure 28% Note: Consumers were asked to choose up to three concerns. Results show ‘any ranking’. Base: 500 internet users aged 16/18+ Source: Dynata/Lightspeed/Mintel, March 2021
31 CHALLENGES FOR COMPANIES | Consumers’ environmental concerns CONSULTING Considering FIGURE 2:2 carbon emissions The negative impact of Share of annual GHG emissions by sector consumer-facing products and services can be gauged in terms of their contribution to the share of GHG emissions by sector shown in Figure 2:2. 73.2% 18.4% 5.2% 3.2% Agriculture, forestry Energy Industry Waste In this regard, waste (including & land Use ocean plastic) and deforestation have a relatively low emissions footprints compared with that of agriculture as a whole or indeed Energy use Energy use Agricultural 24.2% 16.2% Transport 17.5% 4.1% 3% Cement 1.9% Landfill energy use in consumer-facing in industry in buildings soils areas such as transport. Road Residential Livestock 10.6% Other industry 11.9% 10.9% 5.8% 2.2% Chemicals 1.3% Waste water transport buildings & manure 7.2% Iron and steel 1.9% Aviation 6.6% Commercial 3.5% Crop burning Non-ferrous 0.7% metals 1.7% Shipping 2.2% Deforestation Chemical & Unallocated fuel 3.6% 0.4% Rail 7.8% combustion 1.4% Cropland petrochemical Food & Rice 1% 0.3% Pipeline Fugitive 1.3% Tobacco 5.8% emissions cultivation from energy 0.6% Paper & pulp production 0.1% Grassland Energy in 0.5% Machinery 1.7% agriculture & fishing Note: Annual total estimated at 51 billion gigatonnes (Gts). Sources: Adapedted from Climate Watch; World Resources Institute
32 CHALLENGES FOR COMPANIES | Consumers’ environmental concerns CONSULTING Considering carbon storage FIGURE 2:3 Emissions related to By comparison, the ocean is a consumer-facing products and giant: it holds 37,000 billion tonnes Movement of carbon between land, atmosphere and oceans (Gts) services (covered in Figure 2:2), of carbon, but only 1,000 billion and environmental solutions, can tonnes of that is close to the surface, also be evaluated by how they where it’s used by phytoplankton Atmosphere (800) Atmospheric affect the amount of carbon stored for photosynthesis, transferred to Carbon Net Annual in the sea, soil, plants and animals. fish and other animals up the food Increase chain, then back down to the deep 4 The Earth holds 65,500 billion metric ocean when they die. Carbon is also 60 tonnes of carbon, most of which stored (very efficiently) in mangrove 120+3 Photosynthesis is stored in rocks. The remainder forests, seaweeds, seagrasses Plant 9 flows between the ‘reservoirs’ of and corals. respiration Fossil fuels, the ocean, atmosphere, plants and cement, and soil. The human-generated activities The implications in the ocean are Plant land-use change covered in Figure 2:2 remove the same as those on land: changes biomass carbon from the reservoirs of fossil to habitat and biodiversity— (550) Net terrestrial 90+2 fuels, soil and biomass, adding it through activities like overfishing uptake 90 to the atmosphere and raising and fertiliser run-off (where the 3 the temperature. excess can cause bacteria and So algae growth and toxify water il c 60 Surface ocean arb on (1,000) Earth’s plant biomass holds 500 ecosystems)—transfer this stored Mi Air-sea gas c billion tonnes of carbon and the soil carbon into the atmosphere and res robi exchange p a de irat l 2,300 billion tonnes. These figures raise the temperature. co ion d mp an demonstrate how agricultural osi and i on ion tio t n ira osit cultivation and deforestation sp Re mp Deep ocean e co practices can potentially release So d (37,00) il ( n carbon into the atmosphere. 2,3 n kto is 00 pla es ) h yto synth P 2 oto ke 0) GtC/y: Gigatonnes of ph p ta ,00 Fo u ( 6 ssi an en ts carbon/year lp o ce i m oo t ed Numbers in parentheses l (1 Ne es 0,0 t i v refer to stored carbon 00 ac ) Re pools. Red indicates carbon from human emissions. Note: Annual total estimated at 51 billion gigatonnes (Gts). Sources: Adapted from Climate Watch; World Resources Institute
33 CONSULTING 02 How consumers’ concerns match up with emissions
34 CHALLENGES FOR COMPANIES | How consumers’ concerns match up with emissions CONSULTING After climate change, FIGURE 2:4 air quality is the second most likely issue to be a top-three concern for Consumers selecting air quality (e.g. exhaust fumes, industrial consumers. There is a emissions) as a top three environmental concern good reason for that since emissions from energy usage alone in industry and road transport generated 70% 36.1% of global GHG 64% 64% emissions in 2016. 62% 61% 53% 53% 53% 52% 52% 48% 45% 40% 39% 37% 33% 23% 36.1% of 15% 16% 19% 15% 16% 15% global GHG 12% 11% 11% 11% 11% 11% 9% 8% 7% emissions come from China Poland S Korea Thailand Italy Brazil India Canada USA Spain France Ireland Australia UK Japan Germany industry and road transport Any rank 1 energy emissions. Note: Consumers were asked to choose up to three concerns. The figure shows air quality selected first and ‘any ranking’. Base: 500 internet users aged 16/18+ Source: Dynata/Lightspeed/Mintel, March 2021; Climate Watch; World Resources Institute.
35 CHALLENGES FOR COMPANIES | How consumers’ concerns match up with emissions CONSULTING 18.4% of global GHG emissions come from agriculture, forestry and land use. Agriculture, forestry and land use all release carbon stored in soil and biomass, and together they generate 18.4% of annual GHG emissions. If we combine consumers’ concerns related to this sector, then 72% select at least one of these factors (deforestation, loss of biodiversity or chemicals entering the environment) as a top-three concern. High proportions of consumers select two of these concerns in their top three, underlining how seriously consumers take these issues, particularly in relation to food and drink.
36 CHALLENGES FOR COMPANIES | How consumers’ concerns match up with emissions CONSULTING FIGURE 2:5 Consumers selecting deforestation, loss of biodiversity or chemicals entering the environment (e.g. pesticides) as a top three environmental concern 84% 84% 81% 81% 78% 77% 76% 76% 73% 73% 72% 67% 66% 59% 55% 51% 49% 45% 39% 35% 36% 35% 34% 34% 33% 33% 28% 28% 26% 21% 17% 14% 9% 9% 6% 7% 5% 5% 4% 3% 3% 3% 3% 3% 3% 2% 2% 1% Germany Italy France Spain India Thailand Brazil UK Ireland Poland Canada USA Australia China Japan S Korea Any one concern Two concerns Three concerns Note: Consumers were asked to choose up to three concerns. The figure shows ‘any ranking’ for deforestation, loss of biodiversity or chemicals entering the environment (e.g. pesticides) Base: 500 internet users aged 16/18+ Source: Dynata/Lightspeed/Mintel, March 2021; Climate Watch; World Resources Institute.
37 CHALLENGES FOR COMPANIES | How consumers’ concerns match up with emissions CONSULTING The most generous estimate for emissions in reality, these are overlapping concerns. from plastic (even accounting for its Sea Shepherd’s revelation that 46% of production using fossil fuels, its incineration plastic in the Great Pacific Garbage Patch 3.6% of global GHG 90% of excess heat and disposal) is a tenth of that of industry and road transport energy emissions, yet ocean is actually fishing nets, confirms that fishing and food have a far greater impact than emissions came from from GHGs since 1971 plastic is a priority for many consumers. packaging when it comes to damaging the the production and has been absorbed by Understandably, people don’t think in terms of GHGs, but more consumers prioritise ocean and the role of its biomass in storing carbon. incineration of plastic the ocean. ocean plastic than a loss of biodiversity in in 2015. Source: Intergovernmental Panel on Climate Change (IPCC) the oceans when, FIGURE 2:6 Consumers selecting plastic pollution (e.g. ocean plastic) as a top-three environmental concern’ 62% 59% 59% 58% 58% 58% 57% 57% 51% 50% 49% 47% 43% 42% 40% 37% 18% 19% 13% 15% 13% 13% 13% 13% 13% 12% 12% 10% 10% 10% 8% 7% UK Ireland S Korea India Germany Poland Canada Italy France China Spain Australia USA Japan Thailand Brazil Any rank 1 Note: Consumers were asked to choose up to three concerns. The figure shows plastic pollution selected first and ‘any ranking’. Base: 500 internet users aged 16/18+ Source: Dynata/Lightspeed/Mintel, March 2021; UC Santa Barbara; Climate Watch; World Resources Institute; Sea Shepherd.
38 CHALLENGES FOR COMPANIES | How consumers’ concerns match up with emissions CONSULTING Seeing is believing National levels of concern around climate delivering solutions or sustainable products, as Protocol encouraged an international approach change appear grounded in what consumers is confirmed in our characterisation studies in with emission-reduction projects in developing experience in their own countries. Tangibility is Chapter 3 (see Figure 3:1), where sustainable countries counted as part of a ‘donor’ country’s key to why consumers buy into or engage with consumers are distinguished by the high targets, the 2015 Paris Agreement promotes some issues more than others. emphasis they place on values like ‘community’ doing things in one’s own backyard to avoid any and ‘localism’. ‘double counting’ (i.e. where countries can allow That may hardly seem an earth-shattering an emission reduction to be claimed by another insight, but it signifies the importance of This theme of localism also has historic and party and also count it as part of the reduction tangibility and localism when it comes to political significance. While the 2005 Kyoto towards its own target). FIGURE 2:7 Consumers’ attitudes to climate change 69% 64% 61% 59% 59% 57% 54% 54% 54% 52% 52% 47% 51% 49% 48% 49% 51% 48% 48% 47% 45% 45% 45% 41% 42% 42% 43% 38% 37% 37% 34% 33% S Korea Italy Japan Spain China Canada Germany Ireland UK Thailand Brazil India France USA Poland Australia Concerned about climate change (any rank) I believe that the country where I live is suffering from climate change Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
39 CHALLENGES FOR COMPANIES | How consumers’ concerns match up with emissions CONSULTING Concerns: Loss of biodiversity in the oceans Consumers are more concerned about In Kenya, Mikoko Pamoja is a ocean plastic than a loss of biodiversity community-led, Plan Vivo-certified in the oceans (see Figure 2:1), yet the mangrove conservation and restoration destruction of marine habitats is more project that provides long-term incentives worrying, especially as it diminishes for mangrove protection and restoration the planet’s power to store carbon and through community involvement. decelerate climate change. In the UK, the four-year ReMEDIES project The good news is that marine conservation has begun to plant eight hectares of can boost carbon sequestration. Mangroves seagrass meadows in Plymouth Sound cover 2% of marine environments but account and the Solent Maritime Special Area for 10–15% of the carbon stored, while of Conservation. The project is aimed at seagrasses cover just 0.2% of the seafloor starting to redress the loss of an estimated yet absorb 10% of the carbon dioxide stored 92% of the UK’s seagrass, caused by pollution by the ocean. To put things into context, a and physical disturbance from boats. typical square kilometre of territorial forest The project is supported by the Marine stores 30,000 metric tonnes of carbon. The Conservation Society. figure for seagrass is 83,000.
03 Solutions consumers think will save the planet
41 CHALLENGES FOR COMPANIES | Solutions consumers think will save the planet CONSULTING Environmental innovations FIGURE 2:8 perceived as having a ‘high to moderate impact’ can be quick wins for companies looking to Environmental solutions perceived by consumers as having ‘high to moderate impact’ roll out a consumer-friendly strategy that doesn’t require explanation or sales skills. Planting new forests 88% However, as with consumers’ priorities, the real question is what is most impactful—or Protecting existing forests 87% relevant—for a business’s sector. The results in Figure 2:8 help to identify laudable, high-impact Investments in renewable energy 82% solutions that require greater education and better positioning by businesses if they’re to resonate 78% Projects for developing countries to use clean fuels at home and succeed with consumers. Preferential loans to invest in energy efficiency upgrades 73% Bans or limitations on diesel/petrol/gas vehicles 72% A carbon tax on companies, services and products 71% Food produced from leftover ingredients 66% GMO crops to withstand pests/climate change 64% Food grown in labs 48% Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
42 CHALLENGES FOR COMPANIES | Solutions consumers think will save the planet CONSULTING Planting trees is the cornerstone of FIGURE 2:9 many businesses’ efforts to offset emissions, and it understandably resonates with the high proportions of Consumers selecting deforestation as a consumers citing deforestation as a top three environmental concern top-three concern (Figure 2:1). This is laudable and much needed, but 59% protecting existing forests is an even 52% more impactful solution, since saplings 48% 48% 47% won’t absorb as much carbon dioxide 46% 44% as cut-down mature forests would’ve 42% released. In storage terms, the older 38% 38% 37% 35% the forest, the greater the impact. For 33% 33% 30% example, a one-hectare commercial conifer plantation grown over 50 years will store between 50 and 100 tonnes 14% 15% 13% of carbon, but that rises to 250 tonnes 10% 10% 9% 10% 10% 10% 10% 8% for a plantation that is 300 years old.* 7% 7% 5% 7% 6% 3% Germany Brazil France Spain Italy UK Thailand India Poland Ireland Japan Canada Australia USA China S Korea Any rank 1 Note: One tonne of carbon is equivalent to 3.7 tonnes of carbon dioxide. Base: 500 internet users aged 16/18+ Sources: Dynata/Lightspeed/Mintel, March 2021; Eurostat; *Forestry Commission
43 CHALLENGES FOR COMPANIES | Solutions consumers think will save the planet CONSULTING FIGURE 2:10 Planting new forests Consumers perceiving planting new forests as having ‘high to moderate impact’ and percentage of land covered by forests, Europe, by country, 2021 With trees and carbon sequestration, it’s about 0% 100% species too. Land area covered by forest (%) Ireland UK Poland 88% 11% 88% 13% Germany 90% 31% 87% 33% France 89% 31% Italy 94% 32% Spain 91% 37%
44 CHALLENGES FOR COMPANIES | Solutions consumers think will save the planet CONSULTING Solutions: Investments in renewable energy World Tree’s programmes use the After forest planting and conservation, fastest-growing hardwood tree in the world, the ‘investments in renewable energy’ are most Empress Splendor. It can grow 10 to 20 feet tall in likely to be perceived by consumers as its first year and reach maturity in 10 years, with an having a ‘high to moderate’ positive impact acre typically capturing 103 metric tonnes of carbon on the environment. However, many of dioxide. That compares very favourably with 9.5 for these schemes are based on ‘offsetting’—as most species. What’s more, if an Empress is cut down, it opposed to actually reducing—a company’s regrows from the stump and will regenerate up to seven carbon emissions footprint. times, continuing to absorb carbon for over 50 years. The NGO RE100 shows how things can be different by helping companies along a stringent, direct route to taking responsibility for zero emissions across their entire supply chain. By pledging to transition to 100% renewable electricity within their operations and their global supply chains by 2050, brands can’t simply offset their operations by investing Sources: RE100; Burberry in someone else’s renewable project on the other side of the world. Instead, they must invest in putting solar panels on the roofs of their offices and those of their third-party factory suppliers. RE100 partner Burberry demonstrates just how far companies need to go. It already sources 90% of its electricity from renewable sources, but a lower proportion, 41%, of Source: World Tree its products are manufactured in facilities ‘where a significant portion of the energy used is renewable, either on-site or procured’.
45 CHALLENGES FOR COMPANIES | Solutions consumers think will save the planet CONSULTING Solutions: Food grown in labs Consumers favour supposedly more ‘natural’ solutions over lab-grown foods, which tend to focus on realistic-looking meat alternatives. But Solein from Solar Foods is lab-grown food with a difference, and it aims to deliver on a huge scale. In a twist on traditional fermentation techniques, water is taken from the air for microorganisms to live in. They’re then fed bubbles of carbon dioxide, nitrogen, calcium, phosphorus and potassium so that they grow and multiply. This process generates 1kg of nutrient-rich powder from two ingredients: water and renewably sourced electricity. Source: Solar Foods (https://solarfoods.fi/)
46 CONSULTING Key Takeaways 01 02 03 Consumers are most concerned by Companies must address these ‘Seeing is believing’: national levels the environmental issues that are concerns but still engage on the issues of concern around climate change the most tangible (climate change), that are most impactful and relevant are closely linked to what consumers threatening to one’s health (air quality) to their business. experience in their own countries, and visible (plastic pollution). making tangibility—and locality —key to which issues and solutions consumers buy into. 04 05 Consumers perceive planting new These solutions, along with lab-grown forests, protecting existing forests, and foods, present opportunities for investments in renewable energy as tangible, local solutions. the highest-impact solutions.
Approaches for success 01 Understand consumers’ characterisation and touchpoints 02 Educate on impact 03 Sell in the science 04 Use clear metrics and language 04 Key Takeaways
01 Understand consumers’ characterisation and touchpoints
49 APPROACHES FOR SUCCESS | Understand consumers’ characterisation and touchpoints CONSULTING Who are the ‘sustainable’ consumers? Mintel’s driver statements—where Potential ownership is also stronger consumers answer whether (by four percentage points) characteristics do or don’t describe amongst those who identify with them—can answer this question the statement ‘I think that it’s worth and suggest touchpoints for how to paying more for products of a engage with them. higher quality’. For instance, EV/hybrid vehicle The key opportunity here is for ownership increases (by an financial services companies to average of four percentage explain and quantify the short-term points) amongst consumers who benefits of EVs to budget-minded identify with the statement ‘I like drivers, then align themselves with to be amongst the first to try new products that promote the leasing technologies’, but it only increases or purchasing of cleaner vehicles. amongst those who agree with the statement ‘I have a budget that I What is the characterisation of, try to stick to as much as possible’ and what is most important to, a in the more developed markets sustainably minded consumer? of China and Japan. Progressive By building a sustainably-minded tech-savviness defines the EV consumer group and comparing it owner, but a focus on the superior against the average, we can see return on investment resulting from that this group identifies especially ownership is yet to appear in the strongly with commonplace ‘developing’ markets of Europe and factors like sticking to budgets and the Americas. convenience (‘I am always on the lookout for things that make my The same characteristics hold life easier’). Sustainable products true for those aspiring to own and services should ignore these EVs. Aspiration levels are even essential qualities at their peril stronger (by an average of eight in the same way that they should percentage points) amongst heed consumers’ red lines about consumers who identify with the what they won’t sacrifice for statement ‘I like to be among sustainability (Figure 1:7). the first to try new technologies’.
50 APPROACHES FOR SUCCESS | Understand consumers’ characterisation and touchpoints CONSULTING FIGURE 3:1 How all vs sustainable consumers describe themselves 73% It is important for me to feel part of a community 83% 70% Experiences are more important to me than material possessions 81% 73% I have a budget that I try to stick to as much as possible 80% 67% I try to buy from local companies where possible 80% 71% I am always on the lookout for things that make my life easier 79% 69% I am activley seeking ways to reduce stress 77% 54% It is important for me to lead an active lifestyle 72% Being able to express my individuality is a top priority for me in my life 61% 69% I like to be amongst the first to try new technologies 48% 54% 43% I like to stand out from the crowd 49% All Sustainability-minded consumers Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
51 APPROACHES FOR SUCCESS | Understand consumers’ characterisation and touchpoints CONSULTING When it comes to what most FIGURE 3:2 distinguishes a sustainably-minded consumer from an average consumer, we see: the importance of The differences in how sustainable consumers describe human elements around ‘community’ and ‘localism’; a reaffirmation themselves (percentage points change versus all consumers) that healthy, active lifestyles also resonate; and that there are other touchpoints to explore around It is important for me to feel part of a community 18 reassurance (reducing stress), individuality, early adoption and I try to buy from local companies where possible 13 egotism (‘I like to stand out from the crowd’). Appealing to these Experiences are more important to me than material possessions 11 touchpoints is crucial if we’re to position sustainable products and services successfully and ‘sell them It is important for me to lead an active lifestyle 10 like soap or soft drinks’. I am always on the lookout for things that make my life easier 8 I am activley seeking ways to reduce stress 8 Being able to express my individuality is a top priority for me in my life 8 I have a budget that I try to stick to as much as possible 7 I like to be amongst the first to try new technologies 6 I like to stand out from the crowd 6 Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
52 APPROACHES FOR SUCCESS | Understand consumers’ characterisation and touchpoints CONSULTING FIGURE 3:3 Applying this approach to western European consumers, we can see that Italians might react best to playful or moral positioning that What European sustainable consumers are driven by emphasises community benefits while also appealing to the progressive tech-savviness of Morals ‘early adopters’. Image Ethics 90% Identity Individuality Equality Germans show standard levels of pragmatism 80% Surroundings but are more disposed to the human rather 70% Community Sustainability than environmental element of messaging and 60% identify less with technological or Heritage 50% Localism experiential drivers. 40% 30% UK consumers are least inclined towards early Media 20% Adventure adoption and focus on premium qualities 10% and those that boost their sense of image Technology 0% and individuality. Early Adopters Playfulness Psycological Experiences Experience Nutrition Nostalgia Physical Quality Wellbeing Premium Budget Convenience Value Germany Italy UK Base: 500 internet users aged 16/18+; Source: Dynata/Lightspeed/Mintel March 2021
53 APPROACHES FOR SUCCESS | Understand consumers’ characterisation and touchpoints CONSULTING Characterisation: Standing out from the crowd on a budget We began with the premise that simply ‘doing good’ isn’t enough for goods and services to sell and succeed. The sustainably-minded consumers we’ve identified are notably characterised by being more budget conscious and keener to express their individuality than the average consumer. They also have stronger peacock tendencies (‘I like to stand out from the crowd’). Source: Back Market, ‘Freedom’ campaign Refurbished tech reseller Back Market appeals strongly to these values with a compelling proposition that addresses the growing problem of e-waste while promising a ‘fairer, more sustainable future by allowing very high-tech products to be sold at up to 70% cheaper than new ones’. Its ‘Freedom’ campaign extols the virtues of democratically priced devices and being ‘different’, while trolling Apple—and those who line up for its devices en masse—in the process.
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