FMCG GURUS: Evaluating the steps that retailers are taking ... · FMCG Gurus –who we are Plant-Life See all, Know all Modernization Good for Me, Good for the Earth Re-evaluating

FMCG GURUS: Evaluating the steps that retailers are taking to reduce plastic waste

November 2019

Overview of presentation

• Introduction to FMCG Gurus

• Understanding consumer attitudes to

plastic and how retailers are

responding

• Key rules and what retailers can do to

capitalize on consumer attitudes

towards packaging

• Conclusion

Headquartered in London

Bespoke and syndicated offerings

Specialize in analysis of consumer

attitudes and behavior across multiple

FMCG industries

Over 700 surveys conducted in 2019

Specific survey series on packaging,

sustainability and blockchain to understand

consumer attitudes towards corporate and

social responsibility

For more information please contact us on

[email protected]

FMCG Gurus – who we are

Plant-Life

See all, Know all

Modernization

Good for Me, Good for the Earth

Re-evaluating Health

Sensory Overload

Raw & Pure

Evolution of Nutrition

Snacking Reclassified

Functional Lifestyle

Introducing our top trends for 2020

This presentation is based on the following survey series

FMCG Gurus Sustainability survey series– 26,000 consumers surveyed across twenty-six countries in Q3

2019

FMCG Gurus Blockchain survey series – 26,000 consumers surveyed across twenty-six countries in Q3

2019



• Understanding consumer attitudes

to plastic and how retailers are

responding



towards packaging

• Conclusion

Plastic – in numbers!

480 billion plastic

bottles were sold

worldwide in 2016 –

Earthday.org

One trillion plastic

bags are used

across the globe

annually–

Earthday.org

350 million tonnes of

plastic is produced

each year –

plasticoceans.com

Over 141 million

metric tones of

plastic was thrown

out in 2015 -

Earthday.org

8 million tonnes of

plastic is estimated

to enter the oceans

each year–

plasticoceans.com

Plastic can take up

to 1,000 years to

decompose-

Balancemb.com

A high volume of plastic is produced and used across the globe on an annual basis

In recent decades, much attention

has been given to the impact that

excessive plastic use is having on

the environment

Consumers feel that the environment is at a tipping point

Consumers can feel that damage done to the environment is irreversible – something that will have

an impact on future generations

Consumers feel that health and sustainability are interlinked, meaning that they worry that damage

done to environmental and ecological systems can also impact on their wellbeing

63% of consumers

across the globe say that

they are concerned about

the state of the

environment

54% of consumers


they believe the state of

the environment has

worsened in the last two

decades

48% of consumers


they feel that damage

done to the environment

is irreversible

Extinction, pollution and landfills are a concern to consumers

Are you concerned about any of the following?

Global

3%

5%

20%

24%

26%

27%

28%

29%

38%

41%

44%

50%

50%

53%

54%

54%

54%

55%

56%

None of these

Other

Acid rain

Insect species going extinct

Food shortages

Lack of potable water

Environmental pollution to land…

Ice caps melting

Landfills full of rubbish

Animal welfare

Ethical treatment of farmers

Sea pollution

Air pollution

Global warming

Food wastage

Marine life species going extinct

Carbon emission

Deforestation

Animal species going extinct

Consumers are concerned about a variety of environmental and ecological issues. Many of these

can be related to excessive use of plastic across the food and drink industry

Consumers are being exposed

first hand to the effects of

changing environmental and

ecological systems

Consumers also have a variety of

channels in which they look to

research environmental and

ecological initiatives and pledges

Consumers can often feel that

damage done to the environment

is the direct result of corporate

greed

As such, it is more important than

ever before that brands and

retailers are seen to be doing the

right thing

Consumers feel that retailers should be doing more to help!

42% 40%46%

34%40%

46%

Global Europe Asia-Pacific North America South America Africa

Consumers can often feel that corporate-greed is a core reason for damage done to the

environment

Consumers can also feel that damage done to the environment is more the responsibility of big

business than the individual

Retailers should be doing more to protect the planet

Respondents who agree or strongly agree

10% of global consumers say that they have

changed retailers to one that is more

environmentally friendly in the last two years

when it comes to shopping for food and drink

Consumers have strong feelings towards food and drink packaging

Packaging is a key issue for consumers when it comes to concerns about the corporate and

sustainability practices of brands and retailers

51% of consumers

across the globe feel

that there is often too

much packaging when

it comes to food and

drink

46% of consumers say

that they find it difficult

to recycle packaging

35% of consumers

have less favorable

perceptions of

products if packaging

is not sustainable

62% of consumers

across the globe say

that packaging should

be able to be recycled

as much as possible

65% of consumers

across the globe say

that people not

recycling is a major

issue for the

environment

Only 52% of

consumers across the

globe say that they

recycle on a regular

basis

However, consumers themselves are not fully committed to recycling. This needs to be taken into

consideration when retailers come to developing strategies around plastic reduction

Consumers do not have favorable perceptions towards plastic

Proportion of consumers across the globe who say that they have looked to reduce their usage of

plastic over the last twelve months

33% 33%30%

33%

41% 41%


Proportion of consumers across the globe who say that they find it difficult to recycle plastic

39%43%

36% 36%

29%

38%


One third of consumers have made conscious attempts to reduce their use of plastic over the last

twelve months

However when it comes to buying products in plastic packaging, four in ten say that they find it

difficult to recycle the material

Retailers are taking a number of steps to reduce plastic usage

Retailers in the UK have taken a number of steps to reduce usage of plastic

Information obtained from Which?

Tesco ASDA

Sainsbury’s

• Reduced amount of plastic in

own brand products by at least

10%

• Removed single use carrier

bags

• Removed plastic wrap from

certain vegetables

• Replaced polystyrene boards

on fresh pizza

• Working with government to

create a closed-loop system on

packaging

• Has told suppliers not to use

certain plastics

• Will halve packaging weight by

2025 compared to 2007

• Has trialed offering money back

when plastic bottles returned

• Reduced own brand packaging

by 35% since 2005

• Nearly 40% of packaging uses

recycled content

• Has removed plastic straws

from sale

• Sparking water now sold in

clear, easier-to-recycle plastic

bottles

Retailers in the UK are being

proactive when it comes to

addressing concern about the use

of plastic





responding

• Key rules and what retailers can do

to capitalize on consumer attitudes

towards packaging

• Conclusion

Do not over-estimate the extent that consumers are altruistic

It has to be remembered that consumers have additional need states beyond acting in an ethical

and environmentally-friendly manner

As such, they may not be willing to purchase a product simply because it is more environmentally-

friendly from a packaging perspective

As such, retailers need to look for ways to directly relate environmentally friendly initiatives around

offering consumers a benefit beyond acting in a more sustainable manner

37%

Of global consumers say

that they have bought a

less environmentally-

friendly product because it

was cheaper

36%



less environmentally-

friendly product because it

was tastier

37%



product even though they

have been skeptical of

environmental claims

Affordability Indulgence Priorities

Retailers can look to introduce initiatives to encourage recycling

Why do you not recycle all the time?

Global respondents who do not recycle all the

time

11%

28%

29%

30%

35%

41%

46%

Other

No adequate recyclingfeatures near me

I keep packaging foralternative uses

I just forget to do so at times

I am not fully aware on howto recycle

Recycling is too timeconsuming

I find it difficult to recyclecertain materials

What initiatives would you like to see to make

recycling easier?

Global respondents

8%

16%

27%

34%

35%

37%

39%

None of these

Other

Retailers having recyclingfacilities on site

Money back offers whentaking packaging to recycling

facilities

Products and brands usingeasier to recycle packaging

Money off when re-usingpackaging at supermarkets

Packaging that isbiodegradable

Retailers need to take the effort out of recycling

Retailers need to offer additional benefits around sustainable practice

Retailers can use blockchain transparency to enhance trust

Consumers are not fully trusting of brands and manufacturers when it comes to environmental

claims

Blockchain technology can be used to enhance feelings of trust when it comes to the promotion of

initiatives around plastic reduction

Proportion of consumers who say they would be willing to use blockchain technology to find out

more about food, drink and supplements when given a definition

Global

50%

Europe

47%

Asia-

Pacific

55%

North

America

60%

South

America

31%

Africa

51%

Proportion of consumers who say that they would use such technology to check initiatives around

plastic reduction (consumers who say they would be willing to use such technology)

Global

47%

Europe

56%

Asia-

Pacific

40%

North

America

49%

South

America

36%

Africa

37%

Proportion of consumers who have heard of blockchain technology

Global

18%

Europe

19%

Asia-

Pacific

18%

North

America

21%

South

America

18%

Africa

12%

Retailers need to monitor the FULL supply chain

How important do you think it is that brands and manufacturers do checks to ensure that the

materials they buy are ethical and environmentally friendly

Respondents who said important or very important

How important do you think it is that brands and manufacturers conduct research to ensure that

their suppliers demonstrate ethical and environmental policies across all aspects of their

businesses?

Respondents who said important or very important

Monitoring the whole of the supply chain is something that can reduce allegations of green-washing

51% 51% 50%45%

64%

50%


51% 54%47%

41%

56% 56%


Retailers can position plastic reduction as a way of life

Younger adults are especially likely to be

worried about the state of the environment

Demographic that converts attitudes to

behavior (i.e. boycott of retailers and brands)

Environmentally-friendly behavior seen as a

way of life

This is linked to feelings of self-expression

and wanting retailers to mirror this

Plastic reduction needs to be positioned as

cool, rather than an obligation





responding



towards packaging

• Conclusion

Conclusion

The use of plastic is something that is subject to a lot of attention across the retail industry, and this is

something that will intensify as concerns about the environment grow

Consumers are concerned about the state of the environment, and believe that the practices and policies

of retailers is a key cause for damage

Consumers have negative perceptions around plastic and are looking to reduce the amount of products

they purchase that are wrapped in the material

At the same time, consumers can also feel that plastic is a difficult material to recycle – something that will

further impact sentiment to the material

However, it needs to be remembered that many consumers are not altruistic and as such, any initiatives

around plastic reduction need to be positioned around a variety of benefits

Retailers can use blockchain technology to offer consumers maximum reassurance when it comes to

claims around plastic reduction

Positioning plastic reduction as being cool – rather than an obligation – is something that will appeal to a

younger demographic

Documents

FMCG GURUS: Evaluating the steps that retailers are taking ... · FMCG Gurus –who we are Plant-Life See all, Know all Modernization Good for Me, Good for the Earth Re-evaluating