Consumers care about sustainability—and back it up with their wallets
“Companies have focused their efforts on sustainability initiatives as the growing consumer demand for businesses to “give back” has been on the rise. But do these actions actually turn shoppers into buyers?
A recent study by McKinsey and NielsenIQ looked beyond the self-reported intentions of US consumers and examined their actual spending behaviour—tracking dollars instead of sentiment.
Here are key takeaways from its findings:
- The appeal of environmentally and socially responsible products isn’t limited to niche audiences and is making genuine headway with broad swaths of America.
- With inflation at its peak, CPG manufacturers and retailers might consider offering their value-seeking shoppers more ESG-friendly choices at lower price points
- No one ESG-related product claim outperformed all others—but less-common claims (such as carbon-zero) tended to be associated with larger effects.
There is no one size fits all formula for investing in environmentally and socially responsible product features and claims. Opportunities exist on multiple fronts. This research report will help steer companies in the right direction who are considering advancing their ESG commitments while also trying to achieve differentiated growth.”
*This article is excerpted from Chfa’s knowledge weekly, 20 April 2023