Consumer Attitudes and Behaviors Towards Sustainability

Randi Kronthal-Sacco, senior scholar at the NYU Stern Center for Sustainable Business (left); and Doug Yolen, VP, Food & Beverage, Media Center of Excellence, Circana

It’s one thing to talk about sustainability’s appeal to consumers. Yet how are consumers thinking and behaving when it comes to on-shelf food and beverage decisions? Are they reaching for new foods and drinks with sustainable, good-for-the-earth benefits?

Prepared Foods Editor Bob Garrison discusses this topic with Randi Kronthal-Sacco, senior scholar at the NYU Stern Center for Sustainable Business; and Doug Yolen, VP, Food & Beverage, Media Center of Excellence, Circana. The two organizations study consumer attitudes and behaviors and released their 2022 CSB Sustainable Market Share Index.

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Now in its fourth year, this report examines consumer purchases of sustainability-marketed consumer packaged goods (CPG). The latest research notes:

• In the face of high inflation and pressure on U.S. consumers’ wallets, sustainability-marketed products outperformed conventionally marketed products across 36 categories and grew +0.3 points to 17.3% of purchases.

• Sustainability marketed products’ five-year compound annual growth rate (CAGR) sits at 9.48%, outpacing its conventional counterpart at 4.98% for the same period.

• Price premium differential between sustainable and conventional products narrowed.

• Sustainability-marketed products still enjoy a price premium of 27.6% compared to their conventional counterparts, but the price gap did narrow this past year as many conventional products executed above-inflation price increases and several lower-priced conventional products added sustainable features.

Prepared Foods’ podcast explores these and other executive summary points, consumer attitudes, processor strategies and retailers’ initiatives.

About NYU Stern Center for Sustainable Business

The New York University Stern Center for Sustainable Business (CSB) envisions a better world through better business. The Center was founded on the principle that sustainable business is good business — delivering better financial results while protecting the planet and its people. CSB aims to help current and future business leaders embrace proactive and innovative mainstreaming of sustainability, resulting in competitive advantage and resiliency for their companies as well as a positive impact on society. Visit the Center’s website and follow CSB on Twitter: @NYUSternCSB.

About Circana

Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at www.circana.com.

Bob Garrison came in from the cold. A founding editor of BNP Media's Refrigerated & Frozen Foods (R&FF) Bob has profiled industry-leading companies, explored corporate strategies and covered food product development trends at more than 150 leading private and CPG companies since 1989. He has chronicled the histories of leading brands and businesses, including Gorton's, ConAgra Frozen Foods (Banquet) and Swanson's frozen TV dinners. He also has interviewed or profiled such food industry leaders as Mike Harper (ConAgra), Don Tyson and frozen bagel icon Murray Lender.

This exclusive Prepared Foods webinar looks at the industry’s latest low-and no-sugar new foods and beverages—as well as the new ingredient options to consider for 2024 and beyond.