Sustainability gaining traction with European and Asian consumers

The global market research company Euromonitor International recently hosted a webinar titled, ‘Quantifying megatrends: expanding your portfolio in the right spaces’, during which 20 megatrends were identified that would help define what would shape consumer behaviour in the next few years.

Euromonitor International identified three pivotal megatrends: sustainable living, healthy living (and wellness), and the so-called middle class reset.

According to Alison Angus, Euromonitor International’s head of lifestyles research, middle class reset, which referred to the increasingly cautious spending habits of the middle-class consumer, led in terms of where consumers were heading.

“Although this may seem contradictory, what is important to note is that it’s not just about spending on lower-cost items, such as on private labels or in budget stores; it’s about value for money. It’s about consumers spending more on fewer items,” she said.

Dovetailing with this trend was the move away from conspicuous consumption towards more conscious and selective purchases in which quality, authenticity, convenience and sustainability were all increasing in importance.

Angus said that although wellness and sustainability were at the forefront of investment priorities for brands, consumer spend in this category remained more limited compared with other trends. However, there were signs of growing consumer interest and willingness to invest in wellness and sustainable products and services.

“[In] one of our latest consumer surveys, about a third of global respondents stated that they would increase their spending on health and wellness in the next 12 months and buy more sustainably produced goods. On top of that, 23% preferred to buy from purpose-led companies and brands. We’re really seeing consumers making a stand with their spending habits, choosing health and more sustainable lifestyles,” Angus said.

She added that in the US, spending on products aligned with sustainable living, and a healthy environment was the second-strongest megatrend in terms of forecast growth, albeit from a small base.

Looking ahead, Maria Coronado Robles, Euromonitor International’s sustainability insights manager, said France, Denmark, Sweden, Spain and Italy, along with Canada and Australia, were expected to show the greatest per capita growth with regard to sustainability. She added that strong growth was also predicted for Asian countries such as Malaysia, China and Vietnam. “These countries are key markets to have on the radar, as the sustainable living megatrend is expected to gain traction with consumers who increase their spending on sustainable products,” she said. – Jeandré van der Walt

‘WE ARE REALLY SEEING CONSUMERS MAKING A STAND WITH THEIR SPENDING HABITS’

PIXABAY Today‘s consumers are selecting their purchases more carefully than ever, and quality, authenticity, convenience and sustainability are becoming increasingly important, according to Euromonitor International.