Here, we look at several aspects of purpose-driven marketing in regard to consumer sentiment and behavior, as well as growth in the marketplace.

Environment

Environment is an over-arching, “big bucket” cause that resonates with consumers. In 2021, it was the first time our survey respondents identified “health of the planet” over “health of people” as the top global issue. In our Lifestyle & Attitudes Surveys from the past couple of years, we see a steady percentage of consumers saying they are “very” or “fully” engaged in helping the environment.

Although few are actually leading change, approximately 20% of surveyed consumers report being very engaged and actively seeking out ways of living that aid the environment. Additionally, a high percentage of those surveyed said they are moderately engaged and regularly taking small steps such as recycling and minimizing food waste.

We were interested in learning about those environment-related features for which consumers would be willing to pay. Approximately one-quarter of respondents in our 2023 Lifestyle & Attitudes survey express a willingness to pay more for sustainable and environmentally-friendly products and packaging. Looking at meat substitutes, a category often marketed on an environment platform, one-quarter of respondents in the US and nearly 30% of those in Canada say that they consume meat substitutes for environmental or ethical reasons.

Every year, we ask consumers what they would want companies and brands to do to help the environment. According to a recent survey, approximately one-third of participants said they want companies to protect nature and adopt sustainable packaging. Food waste also is top of mind. Here, consumers say they wish companies would reduce both waste in manufacturing and carbon footprint.

Innova monitors claims on new product launches using our extensive global database. We categorize environmental claims as one of our four ethical categories—along with packaging, animal welfare, and human welfare. We saw a 16% average annual growth in product launches with an ethical, environmental claim between 2017 and 2021. Newer claims under this umbrella include carbon neutrality, use of solar energy, protection of the forest, Forest Stewardship Council (FSC)-certified packaging, and reference to RSPO (Roundtable on Sustainable Palm Oil). These types of committed strategies are expanding. As a result, while generic environment claims are growing at an annual rate of only 1% within North America, a number of these more specific claims are particularly on-trend and quickly growing.

Consumer research signals a growing correlation between clean labels and environmental action in consumers’ minds. Furthermore, a product increasingly is deemed to be clean if it also carries environmental benefits. While use of many clean label claims is relatively stagnant within global new product launches, environmental messages are gaining ground and eco-friendly claims could represent the next stage in clean labeling. More than half of North Americans we surveyed say that clean labels have some influence on their purchasing behaviors, particularly in child-oriented categories such as cereals and baby/toddler foods.

Logos are a quick way to convey a product’s clean label credentials. Some manufacturers create their own logos to support the stories they want to tell. Many official certifications also have become established in the consumer consciousness and can help drive home the overall clean label message. These are particularly true in regard to organic and non-GMO positions. Some products carry a label claim of 100% clean or clean label, although these are not recognized claims in the US. Permitted on-package wording that conveys clean features includes no additives and preservatives, GMO-free, and no artificial colors or flavors.

Sustainability

Sustainability is a widely used buzzword that resonates with consumers. When we asked survey participants about their food-related actions to protect the environment, a solid one in five said that they choose more sustainably grown foods. When asked about their motivations and actions, consumers named the environment as their leading motivation for choosing locally produced foods (thus reducing carbon footprint) along with food waste reduction.

We also are interested in learning whether specific food and beverage categories lead the charge toward sustainability. Bakery has been the top category during the past several years and related label claims involve statements such as “made with traceable, sustainable, organic palm oil” and made with “sustainably sourced organic cocoa.” Other categories with sustainability-related claims include sauces, dairy foods, confectionery items, and soft drinks. 

Brands can address sustainability by measuring the impact of their ingredients on the environment, selecting ingredients with a lower carbon footprint, switching to ingredients that are more sustainable, and communicating with consumers to build trust and loyalty. In our 2022 Innova Meat, Dairy & Alternative Proteins Survey, consumers rated meat substitutes positively in regard to sustainability –despite some negative perceptions around price, taste, and texture.

Upcycling and Recycling

Products with upcycled ingredients present a highly accessible way for consumers to do their part for the environment. This aligns with consumer concerns about food waste and gives consumers a tangible way to feel that they are reducing waste on a personal level. In fact, minimizing food waste has been a top response when we ask consumers about their actions to support the environment during the past 12 months. More specifically it was named by nearly half of global participants in the most recent survey.

Consumers appear to see household food waste reduction as the best way to support the environment and they are following through with action. Approximately 40% also acknowledge looking for upcycled products and/or products with recycling attributes. A deeper look at upcycling finds that the most commonly incorporated upcycled ingredients are spent grains from beer production and whey from yogurt manufacturing.

Consumers tell us they are willing to invest in combating food waste. Nearly two-thirds of those participating in an our 2023 Innova Trends Survey indicate a willingness to pay extra for food and beverage products that are devoted to solving food waste.

Human Rights

Human rights claims often focus on social causes such as treatment of workers and bettering the community. We asked consumers about their actions to be more socially and ethically responsible during the past year. Nearly four in 10 reported supporting local growers, producers, and merchants. Clearly, care for those producing food in their local community resonates with consumers around the globe.

Other social-related causes also appeal to consumers. Between one-fifth and one-quarter of respondents to our  2023 Lifestyle & Attitudes Survey say they stopped purchasing from companies associated with unfair labor practices and/or chose brands with products linked to social causes.

Support for these issues is particularly strong in India. Packaging claim information in Innova’s database demonstrates how many Indian tea manufacturers—in particular—use packaging statements to underscore their ethical treatment of workers, support of the community, and protection of both workers and their children.

Animal Welfare

Animal cruelty is a leading ethical issue for both US and Canadian consumers. Not surprisingly, animal protection claims are among those appearing on packaging.

Through a partnership with The Sloth Institute, New York City’s Bean & Bean Coffee Roasters donates 1% of online coffee bean sales to help with track and care for sloths affected by environmental changes. Another coffee example involves Colombia’s Emerald Toucanet Coffee, which says it donates a portion of sales to work with Fundación Natura Colombia and protect its namesake bird.

Closer to home again is Endangered Species Chocolate (ESC), Indianapolis, which says it donates 10% of net annual profits to impactful, "give forward" conservation efforts worldwide. Officials say ESC has given $3.1 million since 2016 to groups such as the Wolf Conservation Center, African Wildlife Foundation, Rainforest Trust, Chimp Haven Inc, seeTURTLES.org and the Wildlife Conservation Network.

Balancing Planet and Pocket

Consumers are trying to strike a balance between planet and pocket. They say health of the planet is their leading global concern and they are taking more personal control over their own impacts on the environment. We also see that—in the face of rising global inflation—consumers with worsening finances are more inclined to take action around food waste reduction and recycling. Looking a little more deeply, Innova Market Insights research suggests that localized products are more important to lower income groups. Meanwhile, higher income groups are more likely to invest in environmentally-friendly products and packaging.

More than half of those responding to Innova’s 2022 “Sustainability, Food Tech & Packaging Survey” said they pay attention to sustainability-related claims on food and beverage labels. However, nearly as many said there are too many sustainability and environmental labels—and it actually confuses them. A single, universal label, such as Europe’s Eco-Score system, could provide an attractive solution that factors all aspects of a product’s environmental impact into a score that’s displayed on-pack.

Lu Ann Williams is Global Insights Director at Innova Market Insights, provider of market research services including the Innova Database. With more than 25 years’ experience in the food industry, Lu Ann is a trend expert and frequent public speaker at events worldwide. She leads a team of analysts and works with global clients. Contact her at luann.williams@innovami.com.