The Brand Sustainability Benchmark Report From On-Demand Research Platform Glow Measures 33,000 U.S. Consumers' Perceptions of Social and Environmental Responsibility
NEW YORK, March 8, 2023 /PRNewswire-PRWeb/ -- US Food and Grocery (F&G) brands take note - missing the mark on sustainability comes with a higher cost than ever before. One-in-two consumers have changed F&G brands based on environmental, social or governance considerations, with the number rising to seven in ten among Millennials, according to the 2023 US Brand Sustainability Benchmark Report.
The report, produced by research technology company Glow with global information services company NIQ, provides sustainability benchmarks for the US Food and Grocery Industry through NIQ data and Glow's proprietary measure Social Responsibility Score (SRS). The SRS assesses consumer perceptions of brand Environmental, Social and Governance (ESG) performance and is based on 33,000 respondents and their views on over 150 brands collected from April to December 2022.
The Benchmark shows that consumers are changing brands to better align with their values, and are switching to brands with the strongest perceived sustainability credentials at twice the rate of the average brand. One-in-two consumers have changed F&G brands based on ESG considerations, with the number rising to seven-in-ten among Millennials.
Based on this behavior, it's little surprise that consumers have high expectations of brands, with 85% believing that it's important for businesses to act responsibly when it comes to society and the environment. More than one in three expressed that it's very important for businesses to do so with this number rising to almost four in ten for Gen Z and Millennials consumers.
As exhibited by brand switching behavior, sustainability is a significant decision-driver, as one in five consumers rank sustainability as a top three decision criteria, with one-in-ten millennials rating sustainability as their most important decision criteria in selecting F&G brands, above price and quality.
"It is vitally important for companies to contribute to supporting society and the planet. And there is a growing body of evidence that doing so is more than the right thing to do, it is good for business, says Julia Collins, Founder & CEO, Planet FWD. This report provides further evidence from Glow and NIQ that those who are leading in consumers' minds are already reaping the commercial benefits and are best placed for future success."
Two separate studies by Glow, based on over $1 trillion in annual sales data, identified a positive relationship between ESG credibility, as measured by SRS, and revenue growth. A two point increase in SRS equates to an additional one percentage point increase in revenue growth.
Across all F&G departments, sustainability efforts from brands can reduce the risk of consumers trading down, as the report found that across seven out of the 10 departments measured, at least one in 10 consumers reported sustainability as the main reason they are not trading down in that area.
"Social and environmental performance is critical even in an economy with rising cost of living. Now more than ever, if brands want to retain and win consumers, they must stand for something," comments Mike Johnston, Managing Director Data Products, Glow. "All consumers are looking for ways to save money. They will need a compelling reason why they shouldn't walk away from your brand for a cheaper alternative! Along with quality, sustainability is a key barrier to change, especially for Millennials."
Overall, the F&G industry was seen to be a leader in ESG practice, ranked second out of 20 industries measured in the research behind supermarkets/convenience stores.
However, while brands are pushing efforts forward, there remains a gap between consumer expectation and industry delivery. The industry's biggest opportunity to improve perception is by addressing key environmental concerns including reducing emissions and climate change and respecting and protecting natural resources as well as demonstrating strong corporate governance by taking care of supplier welfare.
"Consumers want to hear about what brands are doing to support people and the planet. And they want that information through credible sources, including close to point of purchase: on-pack and through digital discovery on retailer sites," expresses Sherry Frey, VP Total Wellness, NIQ. "Brands doing that well can be seen as sustainability leaders and reap the benefits in terms of growth."
The most socially and environmentally responsible brands for consumers according to the report are:
- Dawn
- Seventh Generation
- Love, Beauty & Planet
- Band-Aid
- Dove (body care)
- Kleenex
- Cheerios
- Lysol
- Dettol
- Quaker
Download the report to discover:
- What is driving switching behavior
- Which consumer groups are most active in switching
- Which food & grocery brands are seen as sustainability leaders (top 20)
- How the top brands made the list
- How sustainability is good for business growth
- What environmental, social and governance (ESG) areas brands must address to win
- Where brands should communicate their ESG story to drive impact
To stay up to date with Glow, follow the company on LinkedIn and Twitter.
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Media Enquiries:
High quality images are available for download here. For more information, or to arrange an interview with Mike Johnston, Managing Director Data Products at Glow please contact [email protected]
About Glow:
Glow is a research technology ('restech') company founded in Australia, with offices in the UK, Hong Kong and the US.
Glow is on a mission to make consumer research faster, more transparent and accessible so that businesses can make better decisions that fuel their growth and support their customers, stakeholders and the planet. It is a proud member of the 'data for good' movement which encourages businesses to use data to help better the world.
Glow used its own platform to develop the IP and features for the SRS product, demonstrating how the platform can be used to gather, package and present quality data products.
Media Contact
Matt Houltham, Glow, 61 412 711 773, [email protected]
Rachel Dix-Kessler, SourceCode Communications, 850-510-7963, [email protected]
SOURCE Glow
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