US Future Consumer Index 7: how to satisfy the sustainable consumer

The EY Future Consumer Index uncovers US consumer sentiment on ESG and sustainability, and their expectations of retailers and CPG brands.

Companies are facing increasing pressure from all sides to become sustainable, but especially from the consumer. This edition of the US Future Consumer Index dives into consumer perceptions and expectations around sustainability and how retailers and brands must respond.

Of the five future consumer segments, 17% of US consumers identify as Planet First and another 17% identify as Society First, pointing to the importance of sustainability and ESG as a strategic imperative for companies to meet consumer demands.

Sustainability is now a matter of purchase, trust and loyalty. Retailers and brands must consider its role in every part of the business — from sourcing and packaging to operations, footprint and investments to win the consumer and drive long-term value.

The sustainability issues at hand

Consumers desire to live and buy sustainably

Consumers are increasingly taking actions in their everyday lives to be more sustainable. Their personal efforts to live sustainably all or some of the time include:

And these actions are coming across in the ways that they shop and buy.

Sustainable preferences drive purchase decisions:

Consumer expectations of companies

It’s clear that consumers are eager to do their part, but they also expect companies to operate sustainably – improving their social impact and lessening their environmental one.

US consumers say the top three company priorities should be:

On top of that, regulation will only intensify, ESG factors are shaping how investors allocate capital, industry groups are putting pressure on solving key sustainability issues.

Sustainability at a cost 

On top of that, regulation will only intensify, ESG factors are shaping how investors allocate capital, industry groups are putting pressure on solving key sustainability issues.

Many consumers feel priced-out when it comes to purchasing sustainable products, and as such, revert back to more price-friendly, non-sustainable items. It’s true that there’s a premium on sustainable alternatives to mainstream products, however retailers and brands must do their part to communicate sustainable value – like the long-term savings of re-usable and higher quality products on top of the environmental and societal benefits. This will allow retailers and brands to make it easier and more cost-efficient for consumer to live a more sustainable life in the long-term.

Sustainability Realized

The value proposition for sustainability continues to rise as consumers, regulators and investors drive significant growth opportunities.

Here are the key strategies and core questions to consider:

• Build a consumer-centric sustainability

• Transition sustainability out of a siloed, segmented approach to an integrated strategy focused on long-term value creation aligned with purpose.

• With the massive shift to e-commerce, optimize digital platforms to support consumers’ environmental and societal priorities

• Bring your consumer along on your sustainability journey