Only 5% of FMCG innovation includes sustainable values
If other advantages such as convenience are added to sustainability, the chances of boosting brand preference are multiplied by three.
Lisbon, May 13, 2019 - Sustainability is a concept that is becoming increasingly important in the FMCG market. However, there is still a long way to go before this trend is visible in the shopping cart. According to the Nielsen report "Innovation with values"Only 5% of the innovations in the sector include sustainable values, such as the natural and organic nature of the products or respect for the environment.
However, when sustainability is combined with other advantages of the product and packaging, such as convenience, ease of use and effectiveness, the chances of the consumer opting for the brand in question are multiplied by three.
The same goes for packaging. One of the study's conclusions is that for 631% of consumers the main concern is that the packaging is able to protect the product. For 57% of consumers, the ease with which the packaging can be opened and the fact that it is recyclable and respects the environment are other factors they take into account. The conclusion is that sustainability is valued as long as other premises related to the experience of using the product are guaranteed.
Communicating a story
In addition to connotations related to its use or environmental issues, a product's packaging can be a tool for the brand to tell its story. Most purchasing decisions are made on the shelf. The fact that brands use this medium to communicate their values helps the consumer to know their story and encourages them to choose. Nielsen estimates that 65% of sales associated with sustainability result from communicating the values of certain brands to the consumer.
According to Cristina Rojo, Director of Innovation at Nielsen, "this social concern is essential for the new generations. Thus, 8 out of 10 millennials and young people from Generation Z believe that it is very important for brands to implement strategies to improve the environment. The challenge for the market is to get these values incorporated into product innovation processes, so that when deciding what to buy, sustainability and its impact on society are drivers of brand choice."