78% of consumers consider sustainability as a major purchase factor, which means CPG brands have to go beyond just producing high-quality goods and demonstrate that they are actually doing good.
But what exactly are consumers looking for from CPG brands regarding sustainability? In this blog, you will explore top consumer insights and trends that will help you create an actionable, effective sustainability strategy.
Let's dive into market trends that highlight consumer's preference for sustainable products:
Consumers want brand transparency in their sustainability efforts, from sourcing and manufacturing to packaging and distribution. Here are a few of the top expectations consumers have for brands when it comes to sustainability:
While the consumer insights mentioned above come from the broader market, it is essential to have a deeper understanding of your target audience's specific preferences.
Collecting data from your core demographic and assessing those insights is essential to validate your audience's wants and needs. While there are a variety of data collection methods, they can be bucketed into three main categories:
To make faster, better decisions – you can leverage the power of AI in various ways. Now, let's examine how you can use consumer insights and sustainable technology to inform the development of your product offering.
Beverage Companies Using Biodegradable Plastic Rings
Saltwater Brewery is a Florida-based brewery that is available in major retailers, including Publix, Total Wine, Whole Foods, and ABC Fine Wine and Spirits.
Florida is among the top five most environmentally friendly states, so it's no surprise that its consumers are more inclined toward sustainable brands.
You could probably guess, based on their name "Saltwater" and the fact that they are located in Delray Beach, that the company is passionate about not only beer but the ocean.
Like many others in the state, the founding members grew up as boaters, surfers, and fishermen and saw the pollution challenges firsthand.
The traditional plastic rings on a six-pack of beer kill as many as 100,000 marine animals a year, leading the Saltwater team to create a better six-pack using one of their key in-house ingredients: grain. They are also reducing waste from the grain by recycling it into biodegradable six-pack rings that fully disintegrate in 120 days and are significantly less harmful to marine life.
Major brewers, such as Corona and Guinness, have expressed interest in the biodegradable rings. A testament to consumer sustainability preferences is that the first batch of Guinness beer with biodegradable rings sold out in record time.
As mentioned, consumer insights show buyers want brands to avoid greenwashing.
This is specifically true for the Gen Z demographic, which makes up more than 40% of the world's consumer population.
Gen Z is hyperconscious about inauthentic marketing, especially when it comes to greenwashing and sustainability initiatives. Nasdaq reported that nearly a third of Gen Z has canceled a brand over a recent marketing campaign, ad, or brand affiliation that doesn't align with their values.
In a competitive market with a skeptical audience, it has become increasingly important to convey sustainability efforts effectively and transparently. Here are a few marketing strategies for effectively communicating your sustainability efforts to resonate with your target audience:
Highlight proven, quantifiable benefits from your product features, packaging, and impact on the environment and consumers' lives. Demonstrate how much plastic you saved with your packaging, the amount of renewable energy saved in production, or how your product helps consumers save water or electricity usage.
Steer clear of greenwashing using clear, genuine language to explain your sustainability practices. You have to find a middle ground to avoid being too high-level with fluff or too in the weeds with technical jargon. Make sure your messaging is concise, and if you want your audience to learn more, you can add a QR code or URL that links to more details.
Share the reasons, the value, and the story behind your sustainable practices. Paint the picture of how your products are being sourced, manufactured, packaged, and distributed with an environmental responsibility. Establish partnerships with environmental organizations with the same goals and brands or influencers with the same values.
Showcase your efforts by publishing reports regularly that outline your sustainability goals and track your progress, developing programs that incentivize customers with rewards to participate alongside your sustainable efforts, and fostering community building to connect your audience to your brand's mission.
Remember, authenticity and transparency are critical for effective brand sustainability marketing. Following these strategies, CPG brands can effectively connect with eco-conscious consumers and build trust in a competitive market.
Building trust with your audience is essential for the longevity of your brand's success. 81% of consumers need to trust a brand before they consider buying. Consumers feel confident supporting brands that care about the bigger picture and act responsibly.
Companaes prioritizing sustainability can cultivate more in-depth relationships with their customers through establishing trust, shared values, and a mutual desire to make a positive impact.
Connecting on a deeper emotional level can increase customer loyalty and willingness to recommend the brand to others. You can build trust through consistent actions demonstrating your commitment to social responsibility.
Here are a few ways you can stay accountable, keep your audience engaged, and increase brand loyalty:
But how do you know that your sustainability efforts are paying off? Track these essential metrics to assess the effectiveness of your sustainability efforts.
Here are five key performance indicators (KPIs) that can help you measure the success of your sustainability strategy:
Tracking these KPIs will help identify inefficiencies in your sustainability practices to maximize results. You can leverage green technology to measure your sustainability efforts in real-time for quick adjustments.
Another way to improve your sustainability efforts is to actively seek consumers' opinions.
Through customer feedback, companies can identify areas for improvement and make adjustments that can lead to enhanced results. Incorporating this feedback also makes customers feel more involved with your initiatives, strengthening their connection with your brand.
The consumer landscape has evolved, and brands that do not prioritize sustainability efforts will lose out to their competitors that do. Since sustainability is a driving force in consumers' purchasing decisions, it presents organizations with the opportunity to build trust, loyalty, and emotional connections with their audience on a deeper level.
On an ongoing basis, you should analyze consumer insights to see where you can align your brand values with your target audience's values.
Here are a few additional resources that will help you do that: