Home » Glow Report: Aussie Consumers Choosing Groceries Based On Environmental Standards

11 August, 2022

Glow Report: Aussie Consumers Choosing Groceries Based On Environmental Standards

One in four Australian consumers say they have switched their food and grocery brands based on a company’s environmental and social credentials, according to research technology company Glow’s Consumer ESG/Sustainability benchmark report.

The in-depth look at the Food & Grocery (F&G) industry is based on unique data from Glow’s Social Responsibility Score (SRS).

Other findings included:

Brands perceived to be the most sustainable are growing revenue significantly faster
Gen Z and Millennials switching brands at 2.5 times the rate of older generations
Strong differentiation in ESG credentials – leading brands score twice as highly as laggards. Gen Z most sceptical generation.
Leading brands include Who Gives A Crap, Sukin, v2food and Earth Choice

The report reveals the most sustainable F&G brands according to consumers, which span a mix of product categories and commitments across environmental, social and governance areas.

These leading brands include category disruptors, emerging brands and those with long established connections to the community. Brands in the top 20 include purpose driven toilet paper purveyors Who Gives A Crap, natural skincare experts Sukin, plant based-meat alternative v2food, environmentally friendly cleaner Earth Choice and gluten free innovators Freedom Foods. The full list of the top 20 brands can be downloaded here Glowfeed.com

Glow CEO and founder Tim Clover (pictured) said: “The data shows that consumers have strongly held opinions about the ESG performance of F&G brands and the span of credibility is wide – the leading brands perform twice as strongly as the laggards. Gen Z are the most sceptical about brands (scoring brands 15% below other age groups), highlighting the need to strongly engage younger audiences for future business growth.

“But businesses don’t have to wait to see returns. Glow’s analysis of over $1 trillion of US F&G brand sales data highlights that the brands perceived to be the most sustainable are growing significantly faster than those with weak credentials.

“And Australian data shows one in four consumers state they have already switched F&G brands based on their perception of a brand’s ESG performance, with Gen Z and Millennials switching at 2.5 times the rate of older generations. In addition, brand level analysis of ESG influenced switching identified that the leading brands are gaining twice as many switchers as the average brand.”

Graz van Egmond, CEO of the Banksia Foundation, said: “Sustainability leaders need the full support of their peers and staff within their businesses to share important ESG progress with all stakeholders in a truthful, transparent and timely manner. Consumers expect less hyped up claims and more action. It is becoming more evident that they are seeking to understand the issues and the related solutions that businesses need to be working on.

“Brands that lead their categories in ESG action, impact and communications will win the next generation of shoppers. Brands that are slow to grasp the importance of ESG prioritisation as a fundamental building block for the future of their business will find it impossible to compete.”

While the F&G industry is seen to be at the forefront of positive change (ranked #2 of 22 industries measured) consumers expect more, citing satisfaction with the industry’s performance in only two of four areas they deem most important.

“The study identified that the F&G brands that have the strongest ESG credentials are communicating effectively not only to current customers but also to future prospects and their sustainability story is baked into every facet of their brand experience, not just bolted on to occasional comms,” Clover said.

Phil Benedictus, CEO of Benedictus Media, said: “Consumers are increasingly inclined to consider social responsibility and sustainability values when choosing brands. This means brands both have to walk the talk, and communicate those values effectively in their marketing.”

Consumers say they currently receive ESG messages primarily through news and media coverage, advertising, on product packaging and via social media. They want to get more information via brand owned channels like websites and packaging and in-store/online at the moment of purchase. They want less brand ESG information in their general social feed (except for Gen Z).

To access the report visit Glowfeed.com

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