While we are always looking at consumers to change the game, a new report on consumer trends shows that a big responsibility also falls on producers and manufacturers to change the game.
We often hear that consumer generally care about climate change and the environment – but don’t do much about it.
Often when it comes to the bottom line they’ll shop the cheapest. To be fair, many are struggling to keep busy jobs, raising families and paying mortgages.
A new report by Porter Novelli Australia and Quantum Market Research shows that 80 per cent of Aussies surveyed said that “carbon reduction” and “net zero” have little to no influence on their food choices despite the increasing pressure on food brands and agri-corporates to act.
While on the consumer side, data shows that only 46 per cent of Australians felt some form of pressure to purchase more responsibly, with women more likely to feel the pressure than men.
The research also found that more than 50 per cent of Australians claimed that they would not trust a company’s ESG (environmental, social, or ethical) purpose claims – “making it even more important for companies to be authentic and deliver on what they say they will do and what they signal their stakeholders,” the report concluded.
Porter Novelli’s chief executive, Rhys Ryan, said that consumers now expect corporations to engage all stakeholders – not just shareholders.
This meant that marketers should offset responsible business needs with “efficiency gains and increased sales” and not make “discerning consumers pay a premium for ‘purpose’.
“Australians have always been pragmatic, but nothing sharpens your focus at the supermarket like 13 interest rate rises. When we look at food purchase choices, what stands out is tangible, practical action: Australian-made, fair pay for farmers and looking after animals. It’s only fair,” Mr Ryan said.
“Unfortunately, the less tangible actions – while valuable in lots of ways – do not seem to translate into consumers purchase intent. For example, net zero and working with Aboriginal and Torres Strait Islander suppliers were rated by just one in five people as a priority.”
Those interested in environmental sustainability in their good choices tended to turn to the packaging to look for products based on animal welfare, Australian-grown and processed food and fair pay for farmers and producers.
This meant that it was important for food to contain “clear visual labels” that “allow consumers to make more informed and discerning food choices.”
Besides that, 32 per cent of Aussies indicated that their source of information on how food is made is from family and friends, and 16 per cent indicated that they get advice from social media. The report concluded that Australians appear to be under informed regarding key environmental issues – particularly red meat and its production of greenhouse gases.
Knowledge can also be superficial, as more Aussies indicated that, when it came to buying responsibly, they care more about caged chickens than farmed salmon, potentially due to the skewed concerns of the largest and loudest animal lobby groups.
“It’s not time to abandon ESG initiatives as a positive element of food brands’ marketing communications, but it may be time to refine the way brands go to market, so they are generating real impact with the right audiences,” the study reported.
The report identifies three key trends brands need to understand:
- diverse cohorts will react positively to fairness, including fair pay for Australians, fair treatment of animals, feeling a sense of belonging, and reducing our impact on our world – are strong responsibilities to communicate
- focus on local, tangible, and specific actions – net zero can sound like a buzzwordy pipe dream, but a pilot program to electrify your organisation’s fleet of delivery trucks with solar and batteries sounds more realistic
- be honest about the benefit to your business. If the new diverse, equity and inclusion program will also deliver quality candidates to drive growth, say so
“Either way, ESG is here to stay,” Mr Ryan said.
“Pressure from institutional capital will continue to raise the stakes over time, particularly when it comes to issues like climate and diversity. All of this brings new costs, which must be offset with more revenue.
“If you want that, you must communicate your organisation’s initiatives in a way that actually resonates with Australians.”