Rising consumer interest in ethical issues translates into NPD

07 Jul 2020 --- A growing segment of consumers are concerned about the environmental and ethical issues impacting today’s world. According to research by Innova Market Insights, air pollution, animal cruelty and ocean pollution are the three most important concerns, with response rates of more than 60 percent. The ongoing coronavirus pandemic is flagged by the market researcher as fueling consumer sentiments that unified action is required across global communities, which is having a knock-on effect on product development in the F&B industry.

“Generally, those who are aware of the global issues (e.g. human exploitation, animal cruelty, deforestation and plastic waste) put some attention and care on these issues and are willing to pay more for F&B products that are devoted to solving these global issues. For instance, in the US, 51 percent consumers are very aware of animal cruelty issues. About 53 percent of US consumers are willing to pay more for products that support animal welfare,” a spokesperson of Innova Market Insights, tells FoodIngredientsFirst.

Launches of new food and beverage products with ethical claims have been increasing steadily in recent years and is seen as a growing niche by innovators.Such rising levels of awareness and concern are slowly translating into consumer action at the supermarket tills, the market researcher notes. Although half of consumers say that they are prepared to pay more for products devoted to solving these issues, an average of only 9 percent name environmental, social or ethical aspects as something they consider important when buying groceries. This is a 7 percent increase from a year earlier.

Certain areas of the food and drinks market are more heavily impacted by ethics than others, with plant based foods an obvious example. The market researcher has pegged “The Plant-Based Revolution” as its second Top Trend for 2020, alongside “Storytelling: Winning with Words,” which notably evidences maturing consumer interest in brands backed by personalized stories that communicate its business’ best practices in sustainable sourcing, responsible manufacturing and fair employee treatment.

“A total of 22 percent of meat substitutes shoppers name environmental or ethical issues as a clear reason for purchase,” comments Lu Ann Williams, Head of Innovation at Innova Market Insights. “This makes ethics the third most important consideration in this rapidly expanding market, after health and taste, and the response rate is more than four times the average for all product categories.”

COVID-19 impact
The market researcher notes that launches of new food and beverage products with ethical claims have been increasing steadily in recent years and is “certainly seen as a growing niche by innovators.” However, looking ahead COVID-19 could well have an impact on ethical shopping in the coming years. 

“Significant job losses related to the pandemic will leave many consumers in financial difficulty and, as a result, they may be unable to afford to shop ethically. On the flip side, a stronger community spirit has developed in many populations during the crisis and those who emerge economically unscathed may actually increase their ethical spending, particularly where local causes are concerned,” the company concludes in a forward-looking statement.

According to Innova Market Insights’ Lifestyle & Attitude Survey (2020), 5 percent of German consumers pay attention to ethical factors (e.g. animal welfare, fair-trade and social causes) when making F&B purchases. “They are also willing to pay more on products that support ethical causes (11 percent). In the light of COVID-19 situation, 7 percent of German consumers choose products/brands that support social and ethical causes and they plan to continue this action in the future. Moreover, following ethical principles become their overall motivation for changing their eating habits/diet (4 percent),” the spokesperson details.

Edited by Benjamin Ferrer