“I would like products that create
less negative impact on the world;
I want choices that make me feel
good without harming my wallet ”
“I would like products that create less negative impact on
the world; I want choices that make me feel good without
harming my wallet ”
Whilst people are increasingly aware of the negative impacts of
consumer culture, the welfare of the wider world has become less of an
immediate concern. The short-term priority has shifted to addressing the
challenges created by economic crisis and issues closer to home.
Companies and brands supporting good causes or with more
environmentally friendly approaches remain aspirational, and are still the
desired choice for many where the cost is affordable. Many people are
increasingly shifting their attention toward the issues that impact their
local community, pushing the bigger and trickier environmental issues
back to the manufacturers and retailers to solve.
In some instances, as prices rise, some greener choices have become
smart choices, that ultimately save money in the long run.
The changing shape of the trend as the recession
continues
COPING
with the pressures of
change
From an active and altruistic
interest in making the world
a better place to a greater
focus on caring about „close
to home‟ rather than the
world at large
Making a Difference
EMBRACING
the opportunities of
change
MORE INTENSE
Sustainable Lives
Financial anxiety causes consumers to place
greater emphasis on coping strategies and
solutions
LESS INTENSE
Consumers feel less inclined to embrace new
opportunities, particularly if they carry a
premium
The recession has shifted people‟s focus, the welfare of the
wider world seems less important in the light of more
immediate concerns
Climate change is the biggest single problem
facing the world today
2008
% Agree
2009
80
80
67
60
77
65
59
52
50
45
42
35
40
20
0
Ireland
GB
Rest of EU
Source: Global MONITOR 2009
USA
BRIC
The falling oil price –
from $109 a barrel in
early 2008 to $52 a
barrel in the first half of
2009 has helped
consumers manage in
the recession
Source: FT.com 2009
A focus on value has meant some positive choices
have had to be put on hold
According to data from
TNS World Panel, sales of
organic produce have
fallen by up to a third
since the start of the
recession. Organic
producers are also seeing
their share of the grocery
market shrink.
I've become less concerned about environmental
issues as the economic situation in the world has
worsened
% Agree
35
31
32
30
30
27
25
20
20
Source: The Telegraph 2009
15
10
5
0
Ireland
GB
Rest of EU
Source: Global MONITOR 2009
USA
BRIC
Charity now has more of a „homely‟ feel
Buying local is a good way to lessen the power of
multinational companies
% Agree
80
73
70
70
67
68
58
60
50
40
30
20
10
0
Ireland
GB
Rest of EU
Source: Global MONITOR 2009
USA
BRIC
McDonald‟s local
menus continue to
prove extremely
popular. Underpinning
this offer is an
emphasis on the use
of locally sourced
ingredients.
Drivers
Economic anxieties
Growing awareness of
environmental and social
issues
Sub-trends
Resource worries
Living in a world where resources are
increasingly in short supply
War on waste
Reducing the wasteful results of consumption
Climate conscious
Protecting the world‟s environment and
biodiversity
Growing impact of resource
shortages
Good causes
Supporting a worthy cause through purchase
choices
Declining trust in governments
and big business
Fair treatment
Treating animals and people fairly in the
production process
Key takeaways
• Social, economic and environmental issues are still critical areas for
businesses to address, however in today‟s world they are less
central to driving people‟s choices.
• As more companies embrace the sustainability agenda expectations
of what can and will be done continue to increase. Simple actions
like reducing carbon impacts, off-setting carbon and using recycled
materials are now almost hygiene factors. To stand out in this
space requires more radical solutions; to not make changes and
move with the market risks future repercussions when focus
returns to these issues.
• People are getting more engaged with the issues that impact closer
to home. „Local‟ is becoming a stronger proxy for making a good
choice:
– A choice that helps local producers
– A choice that is better for the environment
– A choice that supports the prosperity of the local community
SUB-TRENDS
SUB-TREND:
Resource worries
Living in a world where resources are increasingly in short supply
Consumers‟ appetite for saving resources or adopting alternatives has grown as solutions
have migrated from the fringes to the mainstream. There is a desire to incorporate resource
saving into everyday life to make less impact on the environment whilst saving money at the
same time.
HOW IS THE SUB-TREND EVOLVING?
Cars that can run
on waste fat from
a pizza restaurant,
US
THEN
Refillable water
bottle sold at
festivals,
Europe
Air device for
shower head uses
less water but
provides the same
feel, Australia
Clever, novel and niche ways to save resources
Waitrose delivers
orders by bike, GB
Samsung’s Blue Earth mobile
phone avoids traditional power
sources by using an in-built solar
panel to provide its power, South
Korea
NOW
Saving resources at the heart of the product or brand
idea and alternative sources become mainstream
SUB-TREND:
Resource worries
Living in a world where resources are increasingly in short supply
Solar-powered mobile
phone, South Korea
Man powered delivery, GB
Molson Coor’s renewable
energy, US
Samsung‟s Blue Earth mobile
phone avoids traditional power
sources by using an in-built solar
panel to provide its power. It is
also made of 100% recycled
materials.
Waitrose in Bury St Edmunds,
Suffolk, has become the first
supermarket in the UK to
introduce an eco handcart in a
move that will also help boost
the number of delivery slots
available to customers, without
increasing the number of vans
on the road.
Molson Coors Brewing Company
was the first major brewer to
convert its waste beer into
ethanol. The company recycles
waste beer - beer lost during
packaging or deemed below
quality standards - and
converts it to ethanol. The
Golden ethanol facility now
produces about three million
gallons of ethanol per year.
SUB-TREND:
War on waste
Reducing the wasteful results of consumption
People are increasingly seeing waste as a cost; a cost to remove and process, and a cost to
the environment. People are looking for ways to reduce their waste or ensure that it is
recycled or repurposed and put to good use.
HOW IS THE SUB-TREND EVOLVING?
Recycling made easy
with street-side
drop-off points,
Spain
THEN
Tea packets that use a
unique origami design
that requires no plastic
packaging or cardboard
tags. GB
Finding more eco-friendly ways to reduce or
dispose of waste
Cardboard centrefree toilet tissue
made from locally
sourced recycled
paper, Japan
Mos Burger is known
for its green
activities, such as
recycling used oil and
food rubbish into
plant food, Japan
John Lewis have created
a fleece which has been
made from 7 recycled
plastic bottles. GB
NOW
Closing the loop and finding ways to usefully
repurpose waste
SUB-TREND:
War on waste
Reducing the wasteful results of consumption
Recycling waste, Japan
Repurposed plastic
bottles, GB
Bottling soap in old soda
bottles, US
Popular burger chain “Mos
Burger”, is popular for its
freshness compared to
McDonald‟s and other chains.
Their green activities, such as
recycling used oil and food
rubbish into plant food, and the
reduction of CO2 from delivery
system, are well publicized.
Producing clothes that children
will be happy and comfortable
wearing is important to John
Lewis, as is the environment in
which they will grow up. John
Lewis have created a fleece
which has been made from 7
recycled plastic bottles. Each
bottle is washed, crushed and
heated, producing a yarn that is
carefully woven to make a
luxuriously soft and warm fleece!
New Soap, Old Bottle is a
California-based company which
uses old plastic soda bottles to
package and sell new soap.
Instead of simply recycling
waste products into a „black
hole‟ this company clearly
communicates to consumers
where the bottles come from.
SUB-TREND:
Climate conscious
Protecting the world’s environment and biodiversity
Carbon emissions and deforestation have received significant press attention and people
increasingly worry about the effects that their consumption will have on the planet‟s health
and its natural habitats. People are showing their active support through the purchase
choices they make.
HOW IS THE SUB-TREND EVOLVING?
Paul Mitchell’s product
line works with
American Forests to
offset emissions by
planting trees, US
THEN
The Rainforest Alliance
works to conserve
biodiversity and ensure
sustainable livelihoods,
Global
Offsetting emissions and active support of
initiatives
The carbon
footprint for each
product is
displayed on
Innocent smoothie
packs, GB
Acai Vodka
produced from the
fruits of the
rainforest and
supporting the
rainforest, Brazil
A carbon neutral beer
where the impacts have
been reduced before
offsetting, GB
NOW
Rising transparency around carbon impacts and a
move to low carbon and low impact solutions
SUB-TREND:
Climate conscious
Protecting the world’s environment and biodiversity
A low carbon
commitment, GB
Acai spirit, VeeV supports
rainforest protection, US
A carbon neutral beer, GB
Tesco is trialing carbon labels on
four categories. The label tells
customers how many grams of
carbon or equivalent greenhouse
gases were emitted as a result of
growing, manufacturing,
transporting and storing a
product. It also considers the
impact of preparing or using a
product and then disposing of
any waste.
VeeV is the first spirit distilled
from the acai berry superfruit.
The company is certified carbon
neutral, and also the first spirit
company to donate US$1 per
bottle sold towards green
initiatives that protect the
Brazilian Rainforest (specifically
The Sustainable Acai Project).
Adnams continue to push and
explore opportunities to further
reduce their carbon footprint.
Their aim is to become carbon
neutral, and only when they have
made all the practical changes
possible in manufacturing do they
offset the remaining carbon. East
Green is the first beer to be
carbon neutral through a change
in the brewing process.
SUB-TREND:
Good causes
Supporting a worthy cause through purchase choices
Supporting good causes through purchasing behaviour has become a common feature of the
consumer landscape. People are scrutinising more closely who really benefits, directing their
support to the issues that really matter to them or where the benefit can be seen. For many
people, the recession has shifted the focus to the issues that are closer to home.
HOW IS THE SUB-TREND EVOLVING?
Quick and easy charity
donations with cards
at the checkout,
The Netherlands
THEN
Breast Cancer M&Ms
make a donation for
every pack purchased,
US
Simplifying the ways to give and raising the
profile of global issues
KFC connect with
local issues
through their
foundation, China
Made jewellery
helps people in the
developing world to
develop the skills
they need to
survive, GB
Waitrose give
the customer
the choice of
local causes to
support , GB
NOW
Bringing democracy into the choice of issues supported
and helping the needy to support themselves
SUB-TREND:
Good causes
Supporting a worthy cause through purchase choices
The customer decides,
GB
Supporting local issues,
China
Empowering people to
help themselves, GB
Waitrose's Community Matters
programme assigns each store
£1,000 each month to donate
among three local charitable
organisations. Customers are
given a chip per shopping visit
and can slot it in any of three
Perspex tubes found in-store one for each of the selected
charities.
Established by KFC China and
the China Youth Development
Foundation, the First Light
Foundation is a scholarship fund
which helps Chinese students
through their college education.
It offers financial aid and
opportunities for part-time
employment which helps
students to support themselves.
Money raised by Made jewelry
sold in Topshop goes directly to
the producers and a percentage
is invested back into community
projects and training. Made
pays their craftspeople a „living
wage‟ which is up to three
times higher than the minimum
wage of their home country.
Fashionable indulgence for a
good cause.
SUB-TREND:
Fair treatment
Treating animals and people fairly in the production process
The desire for growing profits by global corporations has meant squeezing costs out of the
production process; both animals and the „little guy‟ in the supply chain have suffered as a
consequence. Many consumers are seeking alternatives where animals and people are fairly
treated.
HOW IS THE SUB-TREND EVOLVING?
With virtually every
step of the production
process executed in
downtown LA, there
is no use of
sweatshop labour, US
THEN
Ben & Jerry’s has
switched its egg
supply in response
to pressure by the
Humane Society, US
Worldwide sales of
Fairtrade products
grew by an
impressive 22% in
2008, Global
Raising the profile of key issues and new marks
of fairness
The campaign for
supermarkets and fast
food outlets to adopt
higher welfare systems
for chickens, GB
Fairtrade widens
its footprint of products
to cosmetics, GB
NOW
Increased transparency and pressure on the
mainstream to adopt fair practices
SUB-TREND:
Fair treatment
Treating animals and people fairly in the production process
Fairtrade goes from
strength to strength,
Global
Hugh’s Chicken Run, GB
Fairtrade cosmetics,
Global
Worldwide sales of Fairtrade
products grew by an impressive
22% in 2008 as consumers
spent an estimated 2.9 billion
Euros on Fairtrade goods
globally.
Hugh Fearnley-Whittingstall
campaigned for supermarkets
and fast food outlets to adopt
higher welfare systems for
chickens and pay a fair price to
farmers for higher welfare birds.
Currently, Hugh is campaigning
for the welfare of chickens to be
protected through new
legislation.
Increasing numbers of cosmetic
brands include fair trade
products in their range, such as
Lush which offers a popular
peppermint foot lotion.
COUNTRY RELEVANCE
COUNTRY RELEVANCE
How the trend is playing out in Ireland and GB
The trend has been gathering momentum in Great Britain in recent years and some
dimensions are already well established in Ireland. The recession has strengthened the trend
in both markets as people seek ways to live more self-sufficiently.
Ireland:
• Living sustainably is a particularly strong trend in
Ireland where it has an established history.
Equally, reducing waste (especially food) and
managing costly resources like petrol and energy
all play a part in people‟s efforts to live more
frugally during the recession.
• Farming is embedded in Irish culture, and
consequently there is concern around the fair
treatment of producers and animals during food
production.
• There is a strong feeling too in the current
environment that charity begins at home, and
that supporting local producers is a good cause.
This has been strengthening as a result of the
recession as people are keen to „buy Irish‟.
GB:
• The interest in the climate and resource
challenges is newer in Great Britain than Ireland
and is fuelled in part by the media.
• Nonetheless people are slower to adopt
sustainable behaviours, owing to the lack of
connection between many British lifestyles and
direct consequences on the environment.
• Interest in living sustainably is starting to filter
down from general concern to actual behaviour
change. This is thanks in part to the recession,
which is causing people to re-evaluate the way
they live and seek to make changes that are good
for them and the planet.
COUNTRY RELEVANCE
How the trend is playing out in Ireland and GB
Ireland:
Resource worries
Living in a world where resources
are increasingly in short supply
War on waste
Reducing the wasteful results
of consumption
Climate conscious
Protecting the world‟s environment
and biodiversity
Good causes
Supporting a worthy cause through
purchase choices
Fair treatment
Treating animals and people fairly
in the production process
Strength in 2009: Cooling
GB:
Resource worries
Living in a world where resources
are increasingly in short supply
War on waste
Reducing the wasteful results
of consumption
Climate conscious
Protecting the world‟s environment
and biodiversity
Good causes
Supporting a worthy cause through
purchase choices
Fair treatment
Treating animals and people fairly
in the production process
Still warm
Heating up
BEYOND THE RECESSION
BEYONDTHE RECESSION
What might the next 2-5 years bring?
•
People will continue to scrutinise
companies for the impacts they make but
will not expect the costs of improvement
to be passed on. Less impact will be more
important that offsetting impacts:
–
•
Manufacturers are likely to need to take
greater ownership of their waste. Ensuring
waste can be recycled or recycling for
customers is likely to become more
commonplace.
–
–
•
Bringing alternative energy into the
production process e.g. factories run on
wind power and alternative methods to
distribute products e.g. by bicycle are likely
to emerge
Packaging that is biodegradable or reducing
packaging could be more common solutions
Developing schemes to re-use food wastage
e.g. as fertiliser could emerge
Supporting local may become a stronger
shorthand for sustainability and
supporting worthwhile causes. Local can
be viewed on several levels:
–
–
–
From down the road
Sourced within „x‟ number of miles
From countries close to us (Note:
MacDonald‟s highlights that its meat is from
the UK and Ireland)
REDUCED IMPACT
Aveda is the first company with 100%
certified wind power in the US.
Aveda‟s funding of new wind turbines
generates enough wind energy to
offset 100% of the electricity used by
their primary manufacturing facility in
Minnesota.
CLOSING THE LOOP ON WASTE
Yamato Co. supermarkets in Japan
invite consumers to bring their
biodegradable food waste into the
store where it is processed by a
kitchen waste composter. The
resulting substance is sent to local
farmers.
HEALTH OF THE LOCAL COMMUNITY
Burgerville continually looks for
ways to deepen their commitment
to fesh, local, sustainable practices.
They live this commitment through
partnerships with local businesses,
farms and producers.
SUB-TRENDS
POINTS TO PONDER
Navigating the challenges
of today
•
Can you leverage your environmental
credentials to reinforce the value and quality
of your products?
•
Can you turn the waste you create for
consumers into a positive resource for people
to use i.e. great compost?
•
What are your local credentials and what is
the wider impact of your business on your
community i.e. social, environment and
economic? Can you highlight the wider
community benefits your business creates?
•
How can you ensure that people and animals
involved in the production of food are treated
fairly? Are there ways that you could
communicate this to your customers to
highlight the value of your products over
other choices?
Planning for the
longer term
•
How can you reduce the environmental
impacts of your products? Are there new
forms of energy that you can use that will
reduce your costs and environmental impacts
in the longer-term?
•
How can you minimise waste in the
production process and help people minimise
the waste created by using your products?
Can you use less packaging or only use
recycled materials? Can you turn taking back
people‟s waste into a positive resource for
your business i.e. compost or energy?
•
How transparent is your sourcing? Could you
use more local sources for key ingredients?