NielsenIQ: Sustainability is Increasingly Important for APAC Shoppers
NielsenIQ’s (NIQ) latest global sustainability study found 69 per cent of global shoppers feel sustainability is more important to them than it was 2 years ago, but cost, easy access and clarity prevent them from adopting a more sustainable lifestyle.
Looking closer at the Asia Pacific results, NIQ reported Indonesia as the highest-ranking country in the global study to say sustainability is more important than 2 years ago (86 per cent), followed by Thailand (74 per cent), Singapore (72 per cent) and South Korea (69 per cent). See chart 1 below.
NIQ’s study confirmed the top two reasons Indonesians place such a high and growing importance on sustainability are their concerns for personal health and / or safety as a result of climate change, as well as physically seeing more pollution and waste.
Australia bucked the trend in the Asia Pacific region by recording the second lowest global ranking (India recorded the lowest) to say sustainability is more important than 2 years ago – 58 per cent.
Justin Sargent (featured image), President, NIQ Asia Pacific said, Consumers across the Asia Pacific region are clearly feeling the personal impact of extreme weather events and are more aware and informed of the importance of sustainability – ultimately fuelling their demand and the urgency for corporate action and accountability.”
“Positive consumer sentiment toward sustainability has been growing for more than a decade. However, the impact of purchasing preferences has yet to inspire a green revolution within the retail industry. These results indicate that now is the time for that to change,” added Sargent.
Across the Asia Pacific region, shoppers in Singapore, Australia and South Korea are significantly less likely to say it is easy to shop for products in a sustainable way – 45 per cent, 37 per cent and 29 per cent respectively – versus the global average of 50 per cent. See chart 2 below.
“Shoppers around the Asia Pacific region are more committed to sustainability, but many have found it difficult to make daily decisions that support true sustainability impact. It needs to be easier for people to live and consume in a sustainable way that aligns with other daily pressures. This is a huge opportunity for retailers and manufacturers to align to an urgent consumer want and need,” highlighted Sargent.
DRIVERS OF CHANGE
NIQ’s global sustainability report also revealed that the growing importance of sustainability is being shaped by three pressures: increasing government mandates, spiralling costs related to extreme weather events and escalating consumer demand for more sustainable products. The impact of greenwashing is also key to the story, as due to regulations and greater consumer scrutiny, companies will no longer get away with vague / false claims.
The NIQ study revealed shoppers are actively living more sustainably, with 1-in-2 taking their own shopping bags, avoiding waste and minimising electricity usage. Global consumers say that cost (41 per cent), access (35 per cent) and a lack of clarity (26 per cent) stop them from adopting more sustainable lifestyles.
Globally 1-in-10 (11.2 per cent) people say environmentally friendly / sustainability is most important when choosing a brand – ranked fifth. Affordability / price tops the ranks at 18.1 per cent.
NIELSENIQ’S GLOBAL SUSTAINABILITY REPORT HIGHLIGHTS:
- 26 per cent of global consumers find it difficult to find sustainable products on shelf
- 3 in 4 consumers (76 per cent) are calling out for companies to take initiative to reduce their environmental footprint
- 78 per cent of global consumers say companies should be mandated to show full transparency of their supply chain so shoppers can make informed choices
- Of those consumers that said sustainability is more important, 54 per cent said it was because it’s in the news all the time, 48 per cent said that they were more informed about sustainability, 47 per cent said that their health and safety has been or could be impacted by climate change and 1-in-3 say that they have been personally impacted by an extreme weather event
- 48 per cent of consumers say living sustainably is important for society and they try to make sustainable choices when they can
- 79 per cent of global respondents stated they were (quite/very) likely to choose a particular retailer if they offered a wider assortment of sustainable options in store
- 77 per cent say they would stop buying products from a company that had been found guilty of greenwashing, highlighting the importance of trust and transparency not only in communications but in the whole supply chain.
- Scientists and environmental agencies are the most trusted parties for sustainability efforts, but opportunity exists for brands to work with farmers and industry accreditation bodies to improve trust while retailers can leverage strong foundation to insure, they are conveyors of sustainable practices)
Nicole Corbett, vice president global thought leadership, NIQ said: “The outlook of rapid change across the next 5-10 years that will force companies, manufacturers, brands, and retailers to transform and commit to real sustainable business models. We are now at a tipping point, where companies who have been proactive and genuine about climate action will be at a massive advantage as industries grapple to meet requirements and mandated sustainable efforts.”
“To meet targets that become increasingly stringent over the next 10 years, we anticipate a great deal of scrambling from companies that now realise it’s crunch time. They will look for easy wins in the short-term but the game changer is the requirement to report and validate their footprint and gain visibility of emissions and resource use across their whole value chain. This will require a long-term shift and for many a departure from how they currently operate,” added Corbett.
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