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Research shows Australian consumers seek ethical brands

Research shows Australian consumers seek ethical brands

New research from Toluna shows that despite the rising cost of living impacting the health and well-being of Australian consumers, shoppers remain dedicated to shopping ethically.

Consumers continue to seek out brands that are sustainable, are dedicated to reducing packaging, and whose values align with their own, with one in three dropping a brand due to its negative environmental or social impact.

Toluna’s Global Consumer Barometer Study is a regular index that taps into a community panel of 40+ million members to provide accurate and timely information on the world’s current perceptions. The latest wave surveyed 1,016 Australian respondents between 25-31 August.

Key findings

The report’s findings show that Australian consumers remain focused on brand values. Many still prioritise brands whose values align with their own and they’re going out of their way to seek out environmentally and socially responsible brands.

Cost of living impacts mental and physical health

Almost half (47 per cent) of Australians say they’re worse off financially compared to before the pandemic, and 38 per cent are concerned about their finances in light of current global and economic circumstances.

About one-third (31 per cent) expect to be even worse off over the coming three months.

Over two-thirds (69 per cent) of Australians are concerned about the rising cost of living, and 71 per cent cite concern about the energy crisis, specifically.

And these issues are weighing heavily on consumers’ minds, with 62 per cent of respondents stating that both the energy crisis and cost of living are impacting their spending plans.

More than half (56 per cent) are putting off big life expenditures until the economic climate is more stable.

Over the next three months, Australians expect to spend less money eating out (39 per cent), ordering takeaway (34 per cent), going on holidays (31 per cent), drinking in pubs and bars (27 per cent), and buying new clothes (37 per cent).

Almost half (44 per cent) will start reducing unnecessary purchases in their grocery shops and start buying more home brand items (30 per cent).

Ethical brand values still important

Despite the increased cost of living and tightened spending, Australians are still committed to shopping ethically.

The majority of consumers (76 per cent) say it’s important to them that a brand’s values align with their own.

It’s also important to Australians that brands care about their role and contribution to the environment and society (80 per cent), that they have policies which benefit the environment and society (76 per cent), and that they commit to reducing their use of plastic and paper packaging (56 per cent).

Respondents also said it’s important to them that brands only invest and operate in countries that behave in an ethical manner (81 per cent), with four in ten (41 per cent) stating that this is very (26 per cent) or extremely (15 per cent) important.

Values driving purchasing decisions

Australian shoppers feel they have inadequate information when it comes to making ethical purchasing decisions.

Over a third (37 per cent) would like to make more decisions about the brands they use based on environmental and social factors, but don’t have enough information.

Of course, price is proving prohibitive for some shoppers in the current economic landscape, with 39 per cent stating they would like to base more of their purchasing decisions on a brand’s environmental and social activities, but they cannot afford to do so.

Sej Patel, country director of Toluna, Australia & New Zealand said, “Our findings show that the rising cost-of-living and energy crisis is causing consumers to become increasingly concerned, to the point where it’s impacting their health.

“Yet, even as Aussies are preparing to forego some of their lifestyle choices in the face of price hikes – like cutting back on eating out, taking fewer holidays, and trading down for more generic supermarket brands – they are not prepared to sacrifice their values.”

Even in the midst of an economic crisis, Australian consumers remain staunch when it comes to holding brands accountable and proactively seeking out the ones that are most socially and environmentally responsible,” Patel added.

“This is an incredibly significant finding, and brands and businesses who are not already focused on improving their ESG efforts must do everything they can to make it a priority.

“It’s clear that consumers are unwavering when it comes to their values, and businesses would do well to ensure they’re making every effort to understand what makes their customers tick in order to remain relevant,” Patel Concluded

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