IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This issue provides insights into the influence of sustainability factors on consumer shopping and purchase behavior. This free summary is also accessible via the GMA/FPA Web site at  http://www.gmabrands.com/publications/gmairi.cfm

INTRODUCTION

Sustainability -- meeting the needs of today without compromising the ability of future generations to meet their own needs -- has evolved from buzzword to guiding business principle with the power to literally reshape the CPG and retail industries.

A majority of leading CPG retailers and manufacturers now have sustainability programs in place, with most focused primarily on supply-chain improvements. Powerful forces are driving this change: recognition of an urgent need to protect the environment, substantial cost savings, major retailer requirements and impending legislation.

Add to this list a new emerging force that will fuel further change and will take the sustainability movement in new directions: the consumer.
As detailed throughout this report, a viable consumer market has emerged for sustainable CPG products and packaging. This report explores specific growth opportunities for CPG manufacturers and retailers and results of early market development.


KEY FINDINGS

• A viable consumer market has emerged for sustainable products and packaging. One-half of U.S. consumers consider at least one sustainability factor (outlined below) in brand selection, and roughly one-fifth of consumers are “sustainability-driven,” placing a heavy emphasis on multiple sustainability considerations when choosing brands to buy and stores to shop.

• Aging Boomers are most likely to be “sustainability-driven.” Young adults are often considered to be the most “tuned in” to sustainability issues, but sustainability concerns sweep across generations. Consumers aged 55 and over are actually more likely to consider multiple sustainability factors in their shopping and purchase decisions than their younger counterparts. Categories with a high purchase index among 55-plus consumers, including wine, coffee and pet food, for instance, have proven to be fertile ground for sustainable products and packaging.
   
• Shopping patterns are shifting among sustainability-driven consumers. The sustainability-driven segment follows distinct shopping patterns that have shifted as retailers implement more consumer-focused sustainability programs; both the grocery and supercenter channels earned sizable share gains this year within this segment.
   
• Sustainable products and packaging are generating solid growth across CPG categories. Sales among CPG products that are organic, fair trade, green and/or offer eco-friendly packaging are outpacing total category growth across a range of categories, from laundry detergent to snack foods. Once the domain of niche manufacturers and specialty retailers, the sustainability CPG market has recently seen a number of new entrants among leading industry players.
   
• Sustainability marketing poses unique challenges. Successfully marketing sustainable products, packaging and practices requires overcoming sizable hurdles, including consumer skepticism and lack of understanding. Marketers need to ensure that sustainability claims are measurable and well-documented; that specific benefits are clearly outlined, including personal (ie. health, cost savings), environmental and/or social; and that endorsements from well-respected sustainability organizations are obtained.

Source: IRI's Times & Trends Reports
Information Resources, Inc. (IRI) is the world’s leading provider of enterprise market information solutions and services to the consumer packaged goods (CPG), retail, and healthcare industries.