(Credit: WWF)Manufacturers and sellers of sustainable goods have a growing pool of potential customers, according to new research. A study by the Economist Intelligence Unit (EIU), commissioned by WWF, indicates a 71% rise in the popularity of searches for sustainable goods over the past five years, with continuing growth during the pandemic. The trend is creating new market opportunities for companies, particularly in the cosmetics, pharmaceutical, fashion, and food sectors.
The report, which analyzes data from 2016 through 2020 and covers 80% of the world’s population, shows a surge in consumer clicks on sustainable and planet-friendly products in high-income countries as well as in developing and emerging economies. This trend shows that people all over the world are increasingly aware of the environmental crisis facing the planet and that it is affecting their shopping behavior in what WWF is calling an “eco-wakening.”
The trend is not just in clicks on search results for sustainable products. The report shows a 65% rise in the volume of twitter posts related to biodiversity and nature loss — increasing from 30 million to 50 million — in the last four years.
It also finds that year on year, growing concern about the universal threat to nature has been working its way up the media agenda. In 2019, global news coverage of environmental protests increased by 103%, in part due to the rise of global activism as increasing numbers of people campaigned for leaders to take action.
The value nature provides to the global economy is estimated at $44 trillion – more than half of global GDP – and the financial sector has a critical role to play in shifting financial flows away from unsustainable activities and creating a net zero, nature-positive global economy. Companies and financial institutions are increasingly recognizing the risks associated with nature loss, and are putting nature at the heart of their strategies, the report claims.
But regardless of what companies are doing, consumers are in the driver’s seat; existing research shows that consumers not only say they want companies to do better when it comes to supporting the environment, but they are changing their behavior in support of these beliefs. This is shifting profit pools, challenging historically high returns in some areas, while opening billion-dollar opportunities in others.
For instance, over 50% of C-Suite executives say that consumer demand is driving the focus on sustainability in the fashion and textile industry. As a result, 65% of organizations in a recent survey said they had committed to sourcing sustainably produced raw materials, and 60% now collect data on supply-chain sustainability.
Other large companies are following suit and committing to safeguarding biodiversity and nature. In the food, cosmetic, and natural pharmaceutical industries, the number of companies committed to sourcing practices that protect biodiversity increased by 45% from 2016 to 2020.
This research proves that, for companies that are not yet on the sustainable bandwagon, it’s time to “act or be left behind in the marketplace,” says Sheila Bonini, senior vice president of private sector engagement at WWF in the US.
“It’s no longer acceptable or smart to ignore sustainability in business, and this is what consumers are saying loud and clear with their quest for sustainable goods online,” adds Cristianne Close, global markets leader for WWF.
