Troy Treangen’s Post

Consumers Want 'Green' – Are Companies Listening? Products marketed as sustainable grew 2.7 times faster than those that were not, capturing 17% market share and accounting for 32% of market growth according to research source, The Round-up. The New York Post in July 2024, reported that two-thirds (67%) of Americans believe sustainability should be the default position, while some 44% of the 2,000 people surveyed from the general population of Americans said they believe ‘unsustainable’ options should be completely removed from the market. Furthermore, research by McKinsey and NielsenIQ looking at US sales data across 44,000 brands over five years suggests that products making environmental, social, and governance (ESG)-related claims experienced faster growth compared to those without such claims, demonstrating a clear link between consumer spending and sustainability related claims on product packaging. The UK and European market tend to be strong on eco-conscious products and services, and there are some well-developed solutions. So, consumers want green – are companies listening? What’s your opinion? Are there particular brands or product categories rising to the sustainability challenge better than others? *Is there a product that you have picked up, or purchased, because of its ‘green’ credentials? *Does the research stand true with cost of living concerns? *Are we at the point where the sustainable solution is the one you naturally reach for? Let me know what you think. I’ll aim to pick up some of the key themes in another post 😊 *Image below advert from a company website highlighting its B-corp status

🍀Great insights about what consumers think about sustainability. “Smart complexity” can be a strong capability that helps companies build towards scale and profitability. “Businesses need to understand what different consumer segments are after on a category-by-category basis. Yet appealing to specific sustainability priorities means taking a targeted approach to product development and marketing that runs counter to the movement toward simplicity. We call this smart complexity: striking the right balance between agility and scale to maximize the benefits of streamlining without sacrificing responsiveness to consumer needs.” - Bain & Comany report

Interesting insight in this Bain and Company report on consumer attitudes and how business should respond

Consumer Sustainability: A Conundrum Bain Study | Key Findings 1) ~60% of consumers report heightened concerns about climate change over the past two years. 2) Leading companies will create solutions that enable consumers to live sustainably, rather than just purchase sustainable products. 3) Companies should avoid presenting “sustainability” as a uniform concept or treating all consumers alike; instead, they can generate value by targeting specific segments with relevant claims. 4) Packaging and recyclability have emerged as significant consumer priorities.

Do consumers care about sustainability when it comes to their purchasing choices? Or is it the price of products that’s top of mind? 🌍💸 In today’s market, many are torn between choosing eco-friendly options or sticking to a budget, especially with a soaring cost of living. On one hand, sustainable products support our planet and promote ethical practices. On the other hand, affordability is key. Companies are investing time, resource and attention into future-proofing their environmental and social strategies, and we would hope that this effort is worth it. But at the end of the day, is making something sustainable and promoting it in this way driving profit? According to a report by McKinsey and Nielsen IQ in 2023, when consumers in the US were asked whether they care about buying environmentally and ethically sustainable products, the overwhelming answer was yes (phew!). However, does this translate to sales? According to Harvard Business, another survey found that 65% of people wanted to buy purpose driven brands, yet only 26% did. So how do we close the ‘intention-action’ gap? Are we all trying to buy with purpose, but not following through with our wallets? When drilling down to sales, the McKinsey report stated that products making ESG-related claims averaged 28% growth over the past 5 year period vs 20% for products that made no such claims. This tells us that growth is slow. But it’s growth nonetheless. A report by PwC stated that 31% of consumers cite inflation as the number-one risk to their country. However, some consumers say they are willing to spend 9.7% more on average for sustainability produced sourced goods, with 9 in 10 reporting that they are experiencing first-hand the disruptive effects of climate change in their daily lives. As businesses, how can we commit to the long term and continue to educate consumers on why it’s important we make sustainable choices? The younger generation is increasingly interested in the environment and ultimately they are our future. So how do we engage them? Tools such as social influence, using emotional appeal and making it easy to make the sustainable choice are all useful ways of encouraging a desired behaviour. So, would you spend more on a purchase if it claimed to be sustainable? Join the debate and share your thoughts below! 🌎

The best companies will develop solutions that help consumers live more sustainably, not just buy more sustainably. So why are so many brands finding it so hard to resonate when consumers say that brands and retailers play a big role in their sustainability journey? The quagmire of differing perceptions and needs? The fact that brand now needs to represent the whole value chain (and that consumers are smart, enquiring and demanding of sustainability ‘realness’)? This article is a good start to get a sense of where the challenges lie.  

For a lot of brands, transitioning to sustainability is hard. For consumers, sustainable choices often carry unwanted trade-offs: paying higher price premiums, compromising on quality, appeal or product effectiveness (real or perceived). But it's essential we get there, and growth is green - indications are consumer spend is shifting toward ESG options and brands that stay the course stand to benefit from long-term growth. Read on if you're interested. Thanks to Muhsine O. for a great collaboration on this article. https://lnkd.in/dAmyVKwR

🌍 Consumer-Driven Sustainability in 2024: Insights from the Simon-Kucher Global Study Sustainability is no longer just a “trend” for consumers; it’s a core value influencing their purchases. According to Simon-Kucher’s 2024 Global Sustainability Study, while affordability remains a challenge, the demand for green products is stronger than ever. Consumers increasingly scrutinize brands’ sustainability claims, prioritizing transparency and meaningful action. 🔑 Key Impact Points: Sustainability as a Purchase Driver: 64% of consumers rank environmental sustainability among their top three buying factors. Increased Willingness to Pay: The number of consumers willing to pay a premium for sustainable products has grown from 35% to 54%. Transparency Demands: 70% of consumers independently verify sustainability claims, with 57% suspecting greenwashing by brands. 💡 Why This Matters for SMEs: Growth in Green Markets: SMEs can tap into this demand by offering genuinely sustainable products, building trust and customer loyalty. Premium Pricing Opportunity: With a growing willingness to pay, SMEs can explore value-based pricing for eco-friendly offerings. Need for Transparent Marketing: Clear, verified sustainability messaging can differentiate SMEs in a market wary of greenwashing. Key Questions for the Board or Advisors to Consider: 1 - How can we ensure our sustainability claims are transparent and meet consumers’ expectations for authenticity? 2 - Are we effectively segmenting our market to target environmentally conscious consumers willing to pay a premium? 3 - What steps can we take to manage costs and maintain profitability while expanding sustainable product lines? This study highlights that aligning with consumer-driven sustainability preferences is essential for SMEs looking to grow their customer base and enhance brand loyalty in today’s values-based market. If of interest, Share your thoughts and strategies below in the comments, thanks!

Bain and Company have released their annual survey of consumers to evaluate their attitudes towards sustainability. The takeaways from this years report, according to Bain's summary, are exceptionally interesting. They are: 1. In our global study, roughly 60% of consumers say their concerns about climate change have increased in the past two years. 2. The best companies will develop solutions that help consumers live more sustainably, not just buy more sustainably. 3. Companies can’t market “sustainability” as a single concept or address consumers as a monolithic group, but value can be created by targeting specific customer segments with category-relevant claims. 4. Packaging and recyclability have surfaced as key concerns for consumers. The two that stand out the most to me are number 2 and 3. These findings reinforce what those of us in the field have been saying for some time. Sustainability needs to be fully integrated and embedded into a company's business strategy and product development. Innovation should help drive performance and reduce impact. These steps will help avoid single attribute products and marketing. Further, we cannot look at the "customer" and this single all inclusive entity. We need to be smart enough about sustainability to allow for more creative and thoughtful communication that addresses stakeholders on the issues they care about most. This also suggests that companies need to better integrate sustainability into their business strategy and have comprehensive approaches that provide more room for varied customer and stakeholder engagement.

Sustainability has become a powerful driver of consumer behavior. People are changing what they consume, how they consume, and how they lead their day-to-day lives, motivated by a concern for sustainability. Our research has identified a consumer-driven megatrend that holds tremendous strategic opportunity for companies if they change how they think of consumer preferences for sustainable options. The belief that there is only one type of sustainable consumer fails to recognize the diversity of consumer preferences. The stereotypical sustainable consumer who has an intense passion for all things sustainable and a high willingness to pay for sustainable goods and services across all categories accounts for only a small portion of the world’s consumers. Sustainability is now a present and influential factor in how most consumers make their lifestyle and purchasing decisions. But the influence of sustainability on consumers is not uniform, neither in its intensity nor its extent. To understand these differences and make them actionable, we conducted two core studies on consumers in North America and Europe and segmented them by performing a cluster analysis based on two dimensions. Keep reading to discover how businesses can effectively market sustainable products by understanding the various types of consumers. https://buff.ly/3UVmFzH