Do consumers still care about sustainability?

Sustainability has dominated the food and beverage conversation for the past two decades, with consumers increasingly concerned about the damaging effects of climate change, and the future of the planet.

But opinions are changing and consumer interest in sustainability is beginning to wane. So, do consumers still care about sustainability, and if not, where do their priorities lie?

Do consumers still care about sustainability?

Consumer interest in sustainability has grown steadily over the past fifty years, peaking in the mid-2010s, as extreme weather events began to impact all aspects of human life, including food security.

However, a recent survey by EIT Food Consumer Observatory suggests that consumer interest in sustainability is weakening. In fact, results showed that just 9% or Europeans prioritise sustainability in their lives.

Furthermore, the number of consumers who consider sustainability, when making purchasing choices, has declined from 51% to 46%, since 2020.

“In recent years, we have seen a drop in the number of consumers who are taking sustainability into account when choosing their diets,” says Klaus Grunert, professor at Denmark’s Aarhus University and director of EIT Food Consumer Observatory.

And there are multiple reasons for this. The first being cost, with 31% of those surveyed saying budget is the main barrier to shopping sustainably.

According to research, conducted by Dutch consulting company Kearny, the prices of sustainable products are on average 75-80% higher than non-sustainable products.

“Consumers are facing impacts from other pressing global issues, when buying and consuming food,” says Grunert. “Rising prices and political uncertainty have dominated public attention.”

Another major issue facing consumers, and it’s one that comes up time and again in relation to the food and beverage industry, is confusion.

“While sustainability remains important, consumers are often unsure about what sustainable eating truly means,” explains Grunert.

EIT’s survey reveals that less than half (46%) of European consumers believe they have sufficient knowledge about the sustainability of food.

“This knowledge gap creates hesitation, making it harder for consumers to make informed choices,” says Grunert.

Finally, though no less impactful, is the problem of crisis fatigue. For decades, consumers have been bombarded with negative messaging about the future of the planet and, as the problem grows, so too does the continuous negative chatter. This is having the opposite effect to what environmentalists would hope, particularly amongst younger consumers.

“Crisis fatigue is wearing consumers out,” says Aditi Kohli, senior vice president APAC at GWI. “Gen Z are becoming more inward facing, focusing on themselves and their immediate circles. Their interest in environmental issues and current affairs is ticking downwards. It’s not because they don’t care, but rather it’s a case of mental bandwidth and prioritisation being a necessity.”

The big question now is, how will the food and beverage industry react to these results? Will manufacturers follow consumers’ lead, and reduce their focus on sustainability, or will they continue to put planet first?

Also read → Sustainability: More than just preventing climate change

Will food and beverage industry move away from sustainability?

The answer to this question is no… at least for now!

“Despite shifting consumer priorities, sustainability remains a key focus for the food and beverage industry,” says EIT’s Grunert. “Many countries continue to push forward with policies and initiatives that make sustainable choices more accessible and practical for consumers.”

But with cost remaining a major concern for consumers, will higher-priced sustainable products simply be left on the shelves? And will this ultimately force an industry change?

EIT’s Grunert says no.

“Businesses are evolving their approach to ensure they align with affordability, convenience and transparency,” he says. “From regulatory efforts to corporate commitments, sustainability is not taking a backseat.”

However, the geopolitical landscape is changing fast, with one sizeable change already impacting the global view of sustainability – the election of President Trump.

The newly minted US president is blasting through sustainable policies in his home country, with the banning of paper straws announced just this week, and that’s just the tip of the iceberg, as his administration is in the process of removing any mention of the climate crisis from US government websites.

And whether the result of influence or coincidence, governments around the world are beginning to alter their behaviours.

Most notably, is the European Commission’s move away from its Farm to Fork Strategy, part of the Green Deal, and towards what it calls the Vision.

“We expect the document to be more farmer-centric and to focus more heavily on maintaining food security in the short term,” says Thijs Geijer, senior sector economist for Food & Agri at ING Global Markets Research.

This could confuse and frustrate food and beverage manufacturers who have worked hard to meet previous sustainability guidelines set out by the Commission.

“Over the past few years, we’ve seen many food manufacturers develop sustainability strategies and set targets, particularly on carbon emissions,” says Geijer. “One of the key aspects food manufacturers will be looking for in the Vision is how the EU’s ambitions for the next five years align with their corporate sustainability targets.”

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