Retailers to Tout Sustainable Offerings

BY Rachel Cagle
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"The ways in which companies are delivering on their brand promises to consumers is steadily widening as sustainability expands well beyond food and beverages. While we expect sustainable-​minded shoppers to spend up to $150 billion on sustainable products by 2021, sustainability is starting to drive gains in everything from resource management to product packaging. Here’s a glimpse into the myriad ways in which consumer packaged goods companies are embracing sustainability and outperforming along the way."

"By 2021, Nielsen expects sustainably-​minded U.S. shoppers to spend up to $150 billion on sustainable CPG goods. This represents an increase of between $14 billion and $22 billion. Seventy-​three percent of global consumers say they would definitely or probably change their consumption habits to reduce their impact on the environment."

"Food and Beverage Sales Growth vs. Year Ago:

  • Clean Label Products: +4.3%
  • Sustainable Products: +3.7%
  • Products with Nothing Artificial: +2.7%
  • Simple Less then 10 Ingredient Products: +1.3%
  • Conventional Products: +0.7%"

"Products with social responsibilities drive higher sales growth. Eighty-​one percent of global respondents said that it is extremely or very important that companies implement programs to improve the environment. Thirty percent of global respondents are willing to pay a premium for products that deliver on social responsibility claims."

According to AudienceSCAN, 39% of Environmental Cause Supporters will avoid buying from companies whose values conflict with their own and, if all other things are similar, 36.9% of these shoppers will switch brands and 31.3% will switch stores to support causes that are important to them. So, it makes sense that they would do some research into what businesses support their causes. Within the last month, 57.5% of these shoppers used a search engine to research a product or service they were considering. Additionally, within the last six months, 29% have used the internet to view a TV commercial on YouTube, 35.8% used a mobile device to view a retailer's website, and 30% used mobile devices to watch videos about product they're considering.

"Product Claim Sales Growth:

  • B. Corporation: +14%
  • Ethical: +7%
  • Fair Trade: +5%
  • Fair Wages: +4%"

"Sustainable resource management needs to be a part of your process. Product sales with sustainable packaging is on the rise. Resonating trends include made from recycled packaging, post recycled and recyclable."

"Simple, clean and sustainable also drive household care sales. Household care claims that matter include all natural, artificial free, non-​toxic and paraben free."

Both manufacturers and retailers can promote their clean and sustainable products to Environmental Cause Supporters through digital advertising. Last year, according to AudienceSCAN, these shoppers were driven to action by email ads (61.6%) and ads on daily deals websites (55.2%), while 50.9% clicked on text link ads on websites. They're also 76% more likely than other shoppers to find advertising on their mobile apps useful and 50% more likely to find advertisements on social media useful. Don't be afraid to work traditional ads into a campaign, though. Last year, 71% of these shoppers took action after seeing a TV commercial and 66.7% were motivated by direct mail ads.

AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. Media companies and agencies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.