Sustainability Continues to Attract Consumers
Sustainability is one of the largest factors for consumers when choosing products, according to Dr. Krishnakumar “KK” Davey, President of Client Engagement at IRI.
Davy delivered the keynote address at the recent Store Brands Industry Forum on Sustainability, and detailed how and why sustainable private label products are resonating with consumers, particularly Millennial and Gen Z shoppers.
“We asked consumers how much sustainability drives their product choice, and 74% of consumers say it is ‘very important’ or ‘somewhat’ important when selecting products to buy,” said Davey, citing IRI data. “Sustainability is a key driver of product choice. Half of consumers say they are choosing products that are more sustainable now than did 12 months ago. This again skews a little more towards Gen Z and Millennials than other cohorts."
Given increased consumer demand for these sustainable products, IRI data shows that environmentally-friendly items are growing much faster than their conventional counterparts. Sustainability-marketed CPG products have grown at a CAGR of 7.34% from 2015 to 2021.
“More products are being launched, and more choices are available for sustainability,” added Davey. “Just because something is available doesn’t mean people will buy it, but this chart shows with our point-of-sale data that sustainable products are growing at a much faster clip that regular products, which is good news from a sustainability perspective.”
Davey’s keynote address, along with the full Store Brands Industry Forum, can be viewed on-demand here.