Consumers & sustainability – 2024 report

Each year a number of organisations publish their research findings about sustainability.  We looked at 2024’s results to understand the latest consumer attitudes to spending and sustainability.

 

Some of the more influential consumer research reports we looked at shared common themes. They included:

The overwhelming message? It’s time for industry to step up.

1. Sustainable products and services are no longer optional, and consumers want businesses to take the lead.

“Sustainability is no longer just a “trend” – it’s a standard consideration

influencing consumer behavior.”

Simon-Kucher: Sustainability 2024: Navigating consumer behavior

 

 

The demand for sustainable products remains high. Simon-Kucher found that 64% of their survey respondents consider environmental sustainability one of their top three purchasing considerations after price.

Simon-Kucher also points out that consumers prioritise sustainability more in industries with a link to the environment – like floristry.

But while consumers are motivated by a sense of responsibility toward the planet, they are tired of doing the leg work themselves. They want businesses to adopt more environmentally sustainable behaviours as the norm, rather than be forced to seek out better products.

As most of the surveys point out, this is not an obligation but an opportunity. Businesses stand to benefit by making sustainable options the easier choice. It’s what they want.

2. Consumers want businesses they trust.

“The expectation that companies will do the right thing for the environment is now seen as table stakes.”

PwC: Voice of the Consumer Survey 2024

 

 

According to Deloitte, the key ‘trust builders’ are transparent supply chains, independent accreditation, and a strong record around sustainability and climate.

The Simon-Kucher survey gives similar advice: “Build trust and credibility with consumers by openly discussing your sustainable practices, certifications, and initiatives transparently and authentically.”

And RepRisk advises companies to prioritise information from external, independent sources.

This is particularly important in an unregulated industry like floristry. The SFN created our CDP-accredited education program to give florists an opportunity they previously lacked – an independent way of proving their commitment to sustainable practices to increasingly savvy consumers.

3. Sustainability commitments must be authentic and measurable.

 

“As consumer awareness and preference for supporting environmentally responsible companies continue to grow … it is vital for companies to present scientifically validated claims regarding their environmental impacts and commitments.”

RepRisk: A turning tide in greenwashing? Exploring the first decline in six years

 

 

The surveys confirm that sustainability commitments only make an impact on consumers if they’re meaningful. Consumers are deeply wary of greenwashing.

PwC points out that “companies that have clarity over their complete environmental, social and governance (ESG) impact and action plan have a platform from which to speak authentically about the issues that matter to their consumers”. It exhorts businesses to expand their reporting beyond compliance and include the impact they have on the planet.

And make no mistake – consumers are checking your homework. Simon-Kucher’s research shows that around 70 percent of consumers independently verify sustainability claims.

The message for florists is that an actionable plan, however imperfect, is better than pretty pictures of ‘sustainable’ arrangements that customers are expected to take on trust.

4. Consumers are prepared to pay more for sustainable products.

 

“Sustainability is now a top value driver, with consumers actively incorporating it into their purchasing decisions.”

Simon-Kucher: Sustainability 2024: Navigating consumer behavior

 

 

The surveys are fairly united in pointing out that out that consumers are primarily concerned with affordability. Everyone is worried about the cost of living.

Despite this, people seem prepared to pay more for more sustainable products.

The numbers vary, however. PwC’s survey found 80% of people are prepared to pay above average price (on average, 9.7% above average) for sustainably produced or sourced goods.

According to Simon-Kucher, 54% of consumers are now willing to pay a premium for sustainable products, up from 35% in their last survey.

Deloitte, however, found only 36% would pay more for consumer brands that commit to environmentally sustainable or ethical practices. However, a greater number (45%) want businesses to offer sustainable products or services as standard, rather relying on them to change their consumption habits.

Realistically, becoming more sustainable can be more expensive than business-as-usual. For florists, who are selling a non-essential item, pricing is a delicate balance. But consumers increasingly understand that cheap products indicate potentially poor practices – particularly in terms of supply chains.

6. What consumers are looking for.

 

“More transparency around the carbon footprint of products and services is one way to address consumers’ need for more information and could lead to a better understanding of the direct climate impact of consumption choices.

Deloitte: The Sustainable Consumer: Understanding consumer attitudes to sustainability and sustainable behaviours

 

 

Deloitte found that consumers’ most valued sustainable or ethical practices are:

1. Producing sustainable packaging and products

2. Reducing waste in manufacturing processes

3. Committing to ethical working practices

4. Respect for human rights

5. Reducing carbon footprint

 

The responses were slightly different, though, when Deloitte asked respondents what makes a product more sustainable. The top five responses were:

1. If it is made from recycled or repurposed resources or materials

2. If it is made from natural materials or a renewable resource

3. If it uses minimal or recyclable/compostable/biodegradable packaging

4. If it uses less energy or resources to make

5. If it is durable and will last a long time.

 

While a bunch a flowers could hardly be called durable, a bunch of local and seasonal flowers in a repurposed vessel arranged in a workshop that uses renewable power ticks most of these boxes.

7. Regulation is coming.

 

“Businesses are being pushed – through increasingly stringent policy and regulatory frameworks – to develop more sustainable operating models, products and services.”

Deloitte: The Sustainable Consumer: Understanding consumer attitudes to sustainability and sustainable behaviours

 

 

 

Across the globe, different jurisdictions are implementing legislation and regulation that will increase businesses’ obligations when it comes to reporting on their sustainability plans.

So far, this has largely affected big business. But small and medium businesses will be next.

The message: it pays to get ahead of the game.