BOSTON — Pet food consumers are more likely to switch brands or products due to concerns about sustainability, according to a recent consumer survey conducted by L.E.K. Consulting. Additionally, these consumers are much more likely to pay a premium for sustainable pet food products compared to other consumer-packaged goods (CPG).
L.E.K.’s Global Consumer Sustainability Survey 2024 includes results from 5,000 consumers from Australia, Brazil, China, France, Germany, India, Japan, Spain, the United Kingdom and the United States. The report breaks down the importance of sustainability amongst consumers in various product categories, from packaged foods and personal care to beauty, home and even pet food.
“With consumers increasingly using sustainability as part of their product selection repertoire, it’s never been more important to understand how and when sustainability can make a difference to your brand,” said Mark Boyd-Boland, partner at L.E.K. Consulting. “Our work in understanding audiences gives us vital insights to help businesses take advantage of an increasingly complex sustainability landscape and identify how sustainability can become a core part of their proposition and value creation strategies.”
Overall highlights
According to the report, the majority of consumers claimed sustainability was an important issue with an average of 93% reporting that sustainability is at least “somewhat important” to them. This is an increase from 86% from L.E.K.’s 2022 report, which only included consumers from Australia, the United Kingdom and the United States.
When it comes to defining sustainability, consumers focus more on environmental aspects, like clean energy, climate action and biodiversity, over social impacts and governance. In fact, governance was ranked the least important of the three when it comes to sustainability criteria. However, younger generations, specifically Millennials and Gen Zers are more likely to associate social themes with sustainability compared to older generations.
“Our latest survey has mixed but unsurprising results that show that sustainability is far from a blanket term, and the onus is on brands to make sure they focus on what customers care about the most,” said Kathryn Robertson Arrebola, manager at L.E.K. Consulting.
Sustainability in pet food
With sustainability as a concern for most global consumers, it is also playing a role in their purchasing decisions, from beauty and personal care to the products they buy for their pets. According to L.E.K.’s survey, about half of global consumers claimed they have switched brands or products due to environmental, sustainability or ethical concerns. Unsurprisingly, this is higher for younger generations, with 58% of Gen Zers and 56% of Millennials switching products and brands.
Switching products and brands in favor for sustainability is especially true in the pet food category. Compared to other CPG categories, consumers are much more likely to switch pet food products if they are deemed more sustainable. In fact, their likelihood to switch is much higher than the weighted average. Nine percent of consumers reported they “always” switch pet food products/brands due to sustainability concerns, 49% reported they “sometimes” switch, and 42% reported they “never” switch.
For comparison, 6% of consumers reported they “always” switch products/brand when purchasing a loaf of white-sliced bread, 41% reported they “sometimes” switch, and 53% reported they “never” switch.
Source: L.E.K. Global Consumer Sustainability Survey 2024
In addition to having a higher rate of switching, consumers of pet food products are also more open to paying a premium for sustainable products. Overall, across all product categories, 50% of consumers claimed they would pay a premium for more sustainable versions of their usual purchased products. However, among the pet food sector, this jumps to 54%.
Twenty percent of consumers purchasing pet foods and treats reported they “definitely would” pay a premium on sustainable pet food products, 34% reported they “probably would,” 26% reported they “might or might not,” 13% reported they “probably would not,” and a mere 7% reported they “definitely would not.”
For comparison, 17% of consumers purchasing fresh/frozen foods and beverages claimed they “definitely would” pay a premium on sustainable alternatives, 34% claimed they “probably would,” 28% claimed they “might or might not,” 13% claimed they “probably would not,” and 8% claimed they “definitely would not.”
“Despite the nuanced findings within the survey, there is a promising thread: a substantial cohort of consumers are willing to switch brands for sustainability reasons and invest a little extra,” said Lauren DeVestern, partner at L.E.K. Consulting. “L.E.K. can help brands unlock this opportunity for creating value through sustainability-focused product strategies.”
Additionally, the survey found that overall, 30% of consumers are more willing to pay a premium for sustainable products today versus three years ago, with the biggest shifts in pet food. Thirty-six percent of consumers purchasing pet food said they are “more likely” to pay a premium for a sustainable version today, 14% said they are “less likely,” and 50% reported no change in their willingness. For reference, across all categories an average of 30% of consumers are “more likely” to pay a premium for a sustainable version, 14% are “less likely,” and 56% reported no change in their willingness.
Despite the fact that consumers are more likely to pay a premium for pet foods and treats, the amount they are willing to pay is much lower compared to other CPG categories. According to the survey, consumers are willing to pay an 8% premium for sustainable pet foods, whereas they are willing to pay a 24% premium for fresh/frozen food and beverages.
Source: L.E.K. Global Consumer Sustainability Survey 2024Sustainable attributes
L.E.K. found that overall, consumers value a wide range of attributes within the definition of sustainability. In line with an enhanced focus on the environment, consumers consider a product’s environmental impact over its social impact.
The top sustainable product attributes for consumers include: avoids harmful ingredients or materials, durable or high-quality product, sustainable packaging, recycled materials, and sustainable resource and water usage. The least important attributes include: carbon neutral status or net-zero targets, ethical production, eco-credentials, vegan or plant-based, brand supports underrepresented groups.
When trying to determine if a product is sustainable, consumers mostly rely on a product’s packaging and labeling, looking for trusted credentials. Forty percent rely on the product’s packaging and labeling, 33% rely on scientific reports and publications, 31% rely on sustainability-focused websites or apps, 30% rely on news articles and email newsletters and 24% rely on social media and blogs.
Learn more about consumer sustainability trends in L.E.K.’s full Global Consumer Sustainability Survey 2024.
Read more about sustainability trends across the pet food and treat industry.
