Shoppers Want More Sustainable Products, But Brands Are Struggling To Keep Up

Companies, including Nestlé, Coca Cola and P&G, are in a race to adapt to rapidly changing consumer trends, including a rise in veganism and increasing activism on plastic packaging, according to a new report.

MIKE SCOTT: ‘Consumers are becoming far more environmentally aware, and some of the world’s biggest brands are struggling to keep up with the pace of this change in taste. These Fast-Moving Consumer Goods (FMCG) companies, including Nestlé, Coca Cola and P&G, are in a race to adapt to rapidly changing consumer trends, including a rise in veganism and increasing activism on plastic packaging, according to a new report ‘Fast Moving Consumers’ from environmental non-profit and investment research provider CDP…

FMCG companies have a key role to play in curbing over a third of global greenhouse gas emissions but face particular challenges because 90% of the sector’s carbon emissions lie in the value chain, leaving companies exposed to raw material risks and product consumption risks, CDP says. “The proximity of the sector to consumers means companies are exposed to changes in consumer preferences, but also have the opportunity to drive behavior change in order to ensure the longevity of their brands,” it points out…

Five of the seven food and drinks companies CDP analyzed are offering vegan alternatives to meat or dairy products, while all but one of the seven household and personal care companies are working to replace petrochemicals with natural, biodegradable ingredients and four of them, including Unilever, have developed vegan personal care products… “As consumer-facing brands, at risk not just from climate change but water scarcity and deforestation too, these companies have a unique role to play in driving forward the sustainable economic transition,” Carole Ferguson, head of Investor Research at CDP, said’. SOURCE…

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