Consumers care about sustainability and back it up with their wallets
[READ IN FULL AT SOURCE, the complete web text including both stated limitations. This is a consultancy and market-research publication, not peer-reviewed, and is labelled as such everywhere it appears] McKinsey & Company and NielsenIQ (2023). 'Consumers care about sustainability and back it up with their wallets.' McKinsey, 6 February 2023. The best-evidenced version of the industry's commercial case, engaged at full strength. Five years of United States sales data, 2017 to June 2022, covering 600,000 individual product lines representing 400 billion dollars in annual retail revenues, from 44,000 brands across 32 categories, with 93 distinct claim types identified, plus a household panel tracking more than 100,000 households. Headline: 'products making ESG-related claims averaged 28 percent cumulative growth over the past five-year period, versus 20 percent for products that made no such claims', a compound annual growth rate advantage of 1.7 percentage points, and claims-bearing products 'accounted for 56 percent of all growth'. Directly relevant to packaging: 'Products that made the least prevalent claims (such as vegan or carbon zero) grew 8.5 percent more than peers that didn't make them. Products making medium-prevalence claims (such as sustainable packaging or plant-based) had a 4.7 percent growth differential over their peers. The most prevalent claims (such as environmentally sustainable) corresponded with the smallest growth differential', still around two per cent. THEIR OWN STATED LIMITS, QUOTED BECAUSE THEY ARE BETTER THAN MOST OF WHAT THIS FIELD PRODUCES: the study 'does not demonstrate a causal relationship that definitively indicates whether consumers bought these brands because of the ESG-related claims or for other reasons. For instance, the study does not control for factors such as marketing investments, distribution, and promotional activity. It
[READ IN FULL AT SOURCE, the complete web text including both stated limitations. This is a consultancy and market-research publication, not peer-reviewed, and is labelled as such everywhere it appears] McKinsey & Company and NielsenIQ (2023). 'Consumers care about sustainability and back it up with their wallets.' McKinsey, 6 February 2023. The best-evidenced version of the industry's commercial case, engaged at full strength. Five years of United States sales data, 2017 to June 2022, covering 600,000 individual product lines representing 400 billion dollars in annual retail revenues, from 44,000 brands across 32 categories, with 93 distinct claim types identified, plus a household panel tracking more than 100,000 households. Headline: 'products making ESG-related claims averaged 28 percent cumulative growth over the past five-year period, versus 20 percent for products that made no such claims', a compound annual growth rate advantage of 1.7 percentage points, and claims-bearing products 'accounted for 56 percent of all growth'. Directly relevant to packaging: 'Products that made the least prevalent claims (such as vegan or carbon zero) grew 8.5 percent more than peers that didn't make them. Products making medium-prevalence claims (such as sustainable packaging or plant-based) had a 4.7 percent growth differential over their peers. The most prevalent claims (such as environmentally sustainable) corresponded with the smallest growth differential', still around two per cent. THEIR OWN STATED LIMITS, QUOTED BECAUSE THEY ARE BETTER THAN MOST OF WHAT THIS FIELD PRODUCES: the study 'does not demonstrate a causal relationship that definitively indicates whether consumers bought these brands because of the ESG-related claims or for other reasons. For instance, the study does not control for factors such as marketing investments, distribution, and promotional activity. It
Written from the rEAD IN FULL AT SOURCE, the complete web text including both stated limitations. This is a consultancy and market-research publication, not peer-reviewed, and is labelled as such everywhere it appears.
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McKinsey & Company and NielsenIQ (2023). Consumers care about sustainability and back it up with their wallets. McKinsey, 6 February 2023.