Abstract
Introduction
Ethical consumerism will increasingly come to the fore as people shop for products they feel akin to politically, ethically and aesthetically. Consumers will choose brands that are actively making a difference in a transparent and trustworthy manner. This is reflected by the double-digit growth forecasted for fair-trade purchases in the next 5 years in nearly all countries covered in this report.
Scope of this report
- Comprehensive analysis of consumer values, attitudes and behaviors with regard to ethically aligned consumption
- Sizing of key markets influenced by ethical considerations notably organic and fair-trade spending by country and category
- Detailed recommendations offering practical strategies based on the trends and insights uncovered in the report
- Covers countries across Europe, North America and the Asia-Pacific; France, Germany, Italy, Netherlands, Spain, Sweden, UK, US, Japan and Australia
Research and analysis highlights
Ethical concerns span the globe covering many consumers in a number of countries. Differences do however occur on the importance of individual issues on a country-by-country basis. For manufacturers and marketers to effectively capitalize on the trend, they need to understand these variations
The organic food segment dominates overall organics' spending with sales in excess of US$20 billion in Europe and US$17 billion in the US alone. Food products are also increasingly being tagged as ' organic' . In 2007 15.1% of new food product launches tracked by Productscan were tagged as organic, compared to 7.3% in 2002
As the ethical movement has grown, a number of companies have tried to position themselves as ' green' , some with more success than others. Going forward it is imperative that businesses create a clear plan of how to re-adjust to meet consumer demand or risk being left behind.
Key reasons to read this report
- Understand the attitudes driving and inhibiting the ethical consumerism revolution
- Obtain exclusive data on the consumption; food, drink and personal care market values of fair-trade and organic consumption
- Improve your marketing by following best-practice guidelines enabling more effective targeting with on-trend products and relevant communications
Table of Contents
- DATAMONITOR VIEW
- CATALYST
- SUMMARY
- ANALYSIS
- INTRODUCTION: There are different levels and consequences of ethical
consumption
- Business leaders want to take action but are unsure how to best succeed
- Ethical consumerism is becoming more sophisticated
- TREND: Ethical and environmental concerns are escalating on a global
scale
- Concern over environmental and animal welfare issues are especially high among Europeans
- US consumers have entered a more reflective and concerned phase of consumption
- In the Asia-Pacific region more economically developed nations are most concerned about the environment
- Take-outs and implications: ethical consciousness has entered the mainstream and must therefore prompt a strategic re-think as companies plan for the future
- TREND: Consumers are increasingly acting on their ethical beliefs via
product choices
- Fair-trade sales are experiencing phenomenal growth
- Beverages is the most important category in fair-trade, primarily due to extensive coffee and tea sales
- Organic spending is growing, driven, in part, by ethical considerations
- Consumers will boycott brands/products that they perceive as lacking environmental credentials
- Consumers are also disposing of the products they buy in a more ethical manner
- Take-outs and implications: ethical consciousness is directly impacting consumer goods sales
- INSIGHT: Socio-demographics impact how shoppers view ethical issues
- Take-outs and implications: manufacturers and marketers need to take socio-demographics into account but recognize a democratization of ethical consumerism overall
- INSIGHT: There remains a ' disconnect' between consumers' ethical
attitudes and actual buying behavior
- Consumers desire accurate information and education about ethical / environmental issues
- Price can be a factor for some consumers failing to adopt more ethical alternatives
- Consumers demand more from a product than solely being ethical
- Consumers are also questioning the broader integrity of the ethical movement
- Strong ethical credentials are associated with enhanced consumer trust
- Take-outs and implications: removing the major ' inhibitors' to ethical purchasing is needed to reap long-term rewards
- INSIGHT: Environmental concerns are paramount to the ethical consumption
trend
- Ethical consumption is not a wholly altruistic act
- Take-outs and implications: concerns about the environment are not entirely selfless
- INSIGHT: Ethical consumerism is associated with self expressive
consumers looking to position themselves in a specific manner
- Take-outs and Implications: consumers use ethical consumption as a means of expression
- INSIGHT: ' Going local' is a consumption trend with strong ties to ethics
- Food miles are in the consumer consciousness, but the term is not without limitations
- Consumers are responding to concepts of ' carbon footprints' and ' food prints'
- Take-outs and implications: ' buying local' is a key element of the ethical movement
- Conclusions
- INTRODUCTION: There are different levels and consequences of ethical
consumption
- ACTIONS
- ACTION: Determine a clear plan of action to deal with increasing ethical
expectations among shoppers
- Research / monitor your company' s ethical performance effectively - if you don' t others will
- ACTION: Endeavour to reduce the impact of your products on the
environment
- Source products and ingredients ethically where possible
- Demonstrate a commitment to reduce your packaging footprint by
reducing material waste
- Use ' light-weighting' alternatives where applicable
- Incorporate sustainability initiatives into all operations
- ' Carbon offsetting' can contribute to your ethical profile
- ACTION: Actively promote your ethical credentials ensuring honest and
clear communication
- Educate and inform consumers about your sustainability credentials
- Show consumers that your CSR activities are not just PR
- Use carbon offsetting in conjunction with other procedures and claims
- Ensure that ethical claims can be substantiated
- Get passionate activists onside or inside the company
- Don' t be afraid to reflect the positive and ' cool' aspect of ethics
- Make transparency and traceability core features of supply chain and
marketing communications
- Promote the story of the ethically produced product
- Avoid making ethical considerations the key message of marketing communications, especially for new product promotion
- ACTION: Attempt to bring ethical consumerism to mass market
- Expand ethical product distribution into mass channels
- Develop branded initiatives that enable consumers to more easily identify eco-friendly packages
- Use in-store signage to educate and communicate about environmental credentials
- Command price premiums where possible yet strive to bring prices down
- ACTION: Determine a clear plan of action to deal with increasing ethical
expectations among shoppers
- APPENDIX
- Definitions
- Methodology
- References/ Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Fair-trade overall product sales by country, 2002, 2007, 2012, ($m)
- Table 2: Fair-trade sales by country and category, 2002, 2007, 2012 ($ millions)
- Table 3: The percentage of new product launches in the US and Europe tagged as ' organic' , by product 2002-07
- Table 4: Organic food market value ($ millions) by country, 2002, 2007, 2012
- Table 5: Organic beverage market value ($ millions) by country, 2002, 2007, 2012
- Table 6: Organic personal care market value ($ millions) by country, 2002, 2007, 2012
- Table 7: Importance of fair-trade categories by gender, 2006
- List of Figures
- Figure 1: There are a number of drivers and inhibitors affecting ethical consumption
- Figure 2: Ethical consumerism is becoming more sophisticated over time
- Figure 3: Australia and Spain are predicted to have the strongest growth in fair-trade over the next five years
- Figure 4: The US, Spain and Sweden offer the fastest growth potential in organic food sales
- Figure 5: Higher education positively impacts ethical buying behavior
- Figure 6: Over the past twenty years their has been a shift in European and US consumer concern toward environmental issues
- Figure 7: Caring about the environment tops social justice concerns for US fair-trade consumers
- Figure 8: Recent natural disasters have highlighted the impact of climate change in consumers' minds
- Figure 9: Tesco has launched a new store with a 50% smaller carbon footprint than a conventional store
- Figure 10: Educating consumers about ethical sustainability policies increases awareness and adds impact to the changes being made
- Figure 11: Marketers can adapt farmers' market advantages for the mass market
- Figure 12: Ethical considerations are secondary to a number of other important needs associated with food and drink consumption
- Figure 13: In-store signage increases the visibility of sustainable products
