The rising cost-of-living crisis has made it challenging for consumers to purchase basic essentials, causing affordability to become a top concern in their buying decisions. According to data published in the EY Future Consumer Index, sustainability has taken a back seat as most people worry about how they can afford to live.
The report, which surveyed 21,000 consumers across 27 countries, shows that 94% of them are worried about the rising cost of living. Moreover, 79% of consumers feel that food prices have increased in the past 3-4 months. The study highlights that 35% of consumers prioritized affordability, up from 25% in October 2022.
The EY Future Consumer Index categorizes consumers into five segments, namely “planet first,” “experience first,” “society first,” “health first,” and “affordability first.” The data shows that “planet first” saw the biggest decrease, going from 25% of consumers to 16%. China showed the most significant drop where the “planet first” segment went from 35% to 18%.
Although “planet first” remained above “society first” and “experience first,” it took a clear back seat to “health first” and “affordability first” globally.
Kristina Rogers, EY Global Consumer Leader, notes that the UK, Sweden, and Finland saw a noticeable decline in consumer concern about sustainability. The data shows that UK respondents switching to sustainable alternatives decreased from 56% to 50%, those basing purchasing decisions on environmental impact dropped from 56% to 51%, and those expecting high standards in social and environmental practices decreased from 76% to 67%. Sweden’s data shows that 83% of Swedish respondents recycle or reuse packaging, down from 88% the previous year, while in Finland, only 62% actively try to reduce emissions, unlike the previous year’s 70%.
Consumers’ concerns about affordability resulted in a significant decrease in sustainability as a priority. However, many of the consumer trends that suggest a desire to live a more sustainable life remain high, with some even growing. For instance, 82% of consumers were reusing plastic bags in November 2022, compared with 84% in May 2023.
Despite these efforts, there is a significant overall decrease in concerns about sustainability, especially regarding bigger questions. This is further evidenced in 53% of consumers saying purchasing and behaving sustainably is a “guiding principle” of their lives in November 2022, compared to 51% in May 2023. Though 60% of November’s consumers paid more attention to the environmental impact of their consumption, compared with 59% in May, only 44% were willing to pay more if a product was sustainable in November, compared to 42% in May.
In conclusion, while the trend goes against sustainability, it is essential to note that the cost-of-living crisis may be a significant factor. It is crucial for businesses to take note of the evolving consumer trends and shift their strategies to align with consumer priorities.
