Kantar’s latest research has shown that the cost of living crisis has significantly impacted eco-conscious consumers, as the inflation pressures have hindered their ability to make sustainable purchasing decisions aligned with their values. This has meant that sustainable choices have been traded for economical and affordable ones for some consumers.
According to Kantar, this trade-off is a minor matter, as products under the green banner tend to sit within premium price tiers, making them less accessible to the masses. Eco-conscious consumers are not insulated from economic pressure. While they want eco-friendly products, they lack the financial flexibility to afford them. This is a concern that affects consumers globally.
In Argentina, there was a 36 percent fall in eco-purchasing as a result of struggling to make ends meet. Followed by Brazil at 32 percent, Columbia at 49 percent, Peru at 30 percent and the UK at 23 percent.
Brands also face increased pressure and tension as they navigate the cost of living crisis and sustainability expectations. Brands are positioned where they must balance the expectation of demonstrating more action on their ESG goals to institutional investors, simultaneously catering to consumer demand for sustainable products who are also unwilling to pay more for these.
Trust in brands is declining, pushing consumers to buy private label products as price pressure continues, as only 42 percent of consumers globally trust brands not to raise their prices unnecessarily.
Kantar revealed that coupled with these challenges was the value-action gap, with the perceived expense of green options being the leading barrier to making sustainable choices, which is valid across several regions, with 60.9 percent reporting that this was a barrier to buying sustainably.
Retailers are also facing pressure from consumers, as consumers increasingly want retailers to take more action in removing excess packaging from their own-brand products, with 55.1 percent reporting they wanted retailers to prioritise this. Another significant demand from consumers to retailers is reduced supply chain waste (49.9 percent). The demand for sustainable products and practices adds even more complexity to these challenges.
