• A new study suggests that Europeans are "highly motivated" to buy sustainable food. How can brands best convey this product characteristic? And in the context of a cost-of-living crisis, are buyers willing to pay more for it?
As awareness of the food industry's contribution to global warming grows, so does consumer interest in the sustainability of the food they buy. Recent market studies show that in Europe, consumers are driven to buy sustainable food to reduce their impact on the climate.
According to a survey conducted by the agency IPSOS, 58% of Europeans consider climate impact important when buying food and drink. And 31% of Europeans are already making sustainable choices when it comes to their shopping habits.
But what do consumers expect when choosing food and beverages with environmentally sustainable certifications? How can brands make their sustainability claims more visible to consumers? Does the higher price of such products influence purchasing decisions?
Consumers choose food and beverages "echo" in different ways. For some, product sustainability is highlighted by eco-friendly packaging, and for others, it's plant-based or locally sourced ingredients.
The ever-closer connection between what is healthy and what is sustainable
One trend that is gaining ground is carbon footprint labeling. According to IPSOS research, more than three out of four (76%) Europeans want to see the carbon footprint of products on the label. And nearly three in four (74%) believe food companies should make efforts to reduce emissions in their food production.
This trend is also supported by a study FMCG Gurus, which suggests that 69% of European consumers are looking for statements of "low carbon footprint / no carbon footprint" when buying food and drinks.
The study ATLAS of Ingredion on Global Consumer Trends 2023 suggests that two-thirds of European consumers consistently make food and drink decisions based on sustainability claims. And while 65% of European consumers buy the same amount of food and drink with sustainability or environmental claims, 28% of European consumers say they buy more.
From sustainable sources
As for the mentions that European consumers consider "somewhat" or "extremely important" when buying food and drinks, 65% answered "ingredient from sustainable sources", 66% responded "ingredients traceable to the source" and 68% responded "made with locally sourced ingredients".
The pressure is on for manufacturers to show what they are doing to make their products more sustainable. The simplest method is to add sustainability messages to the packaging. This is a simple way to educate consumers about the product's impact on the environment. However, it is imperative that these statements are relevant and easy to understand.
This aspect is supported by a study conducted by Deloitte in 2022, which suggests that almost half (48%) of consumers say they do not have enough information on product packaging to make sustainable purchasing decisions.
But are consumers willing to pay more for sustainability?
Improving the sustainability profile of food and beverage production can be costly. When the costs are not fully absorbed by the producer and are – at least partially – transferred to the consumer, it is important to know how much they are willing to pay.
Against the background of the cost of living crisis, this question is even more relevant, with food inflation in the European Union recently reaching an all-time high of 19,17%.
Studies suggest that, for the most part, consumers are willing to pay more for food and drink "echo". 69% of Europeans said they would choose a more climate-friendly food product over a cheaper option. At the same time, a growing number of consumers are willing to pay more for sustainably produced food.
In the dairy category, for example, consumers are increasingly turning to plant-based alternatives, behavior that can be driven by a desire to eat healthier, but also by a desire to reduce the carbon footprint of their diet .
A survey conducted on behalf of the ingredient supplier beneo showed that around three in four consumers globally consider how food is made and what it contains to be important, while being equally concerned about climate change and the environment.
Increasing importance given to sustainability
These concerns are even more important for self-identifying consumers around the world flexitarians, with figures showing that four out of five people in this category are concerned about climate change, the environment and animal welfare. It is also interesting to note that 42% of consumers globally believe that a product is not healthy if it is not also sustainable.
And a recent study by Mintel also indicated that when asked to define "the value" food and beverage products, consumers place health benefits and natural ingredients higher than "lower price".
In addition, a report of Innovates proves that local and organic products are worth paying for, with 30% of consumers saying they are willing to pay more for organic products. This data truly demonstrates the importance that consumers currently place on the sustainability of the products they buy and helps major manufacturers adapt their offerings to current market trends.
Article written by Gabriela Dan, Editor of Arta Albă
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