CGA by NIQ’s REACH 2023 report indicates that 40% of consumers in the US now consider it very important the food and drinks they purchase are produced by sustainable and ethical businesses, a significant +9pp (percentage points) increase over last year. Additionally, almost a third (30%) still find it important, although slightly less than in 2022. These shifts highlight a growing eco-conscientiousness drinks suppliers can’t afford to ignore.
In addition, 12% of consumers say that they prioritize ethically or sustainably produced drinks more than they did a year ago, marking a 3% increase from the previous year. This trend extends to pricing – 53% of these consumers are willing to pay a premium for sustainability.
Importantly, 13% of US consumers expect to see sustainability information on drink menus – a demand exceeding the global average (+3pp). The preferred channels for communicating a brand’s sustainability credentials are menus (36%), social media (31%), and television advertisements (28%).
Moreover, the stakes are high if consumers discover their favorite brands aren’t sustainable due to practices such as wasting food and water, using single-use plastics, or contaminating resources. In such cases, 22% would be less frequent buyers, and another 22% would stop purchasing altogether (+8pp vs Global average), emphasizing the unique sustainability expectations of US On Premise consumers.
The insights also extend to specific categories, such as wine, where 20% of US consumers use ethical and sustainability credentials to gauge quality more than in other countries.
In this climate, accusations of greenwashing or unethical practices can severely damage a brand’s reputation. Earth Day is a timely refresher for drinks suppliers and distributors to extend their efforts beyond just one day by staying informed and adaptable to consumer expectations around sustainability. CGA by NIQ can help suppliers quantify how their brands perform against sustainability KPIs and consumer perception.
Matthew Crompton, Vice President – Americas said: “It’s now essential to understand the beliefs and behaviors influencing consumer decisions. And our data shows a clear trend that sustainability is a crucial factor in consumer choice. Drinks suppliers need to integrate these insights into their strategic planning and marketing efforts to thrive. Ultimately, sustainable practices represent a competitive advantage, besides a moral obligation.”
Matthew Crompton, Vice President – Americas said: “It’s now essential to understand the beliefs and behaviors influencing consumer decisions. And our data shows a clear trend that sustainability is a crucial factor in consumer choice. Drinks suppliers need to integrate these insights into their strategic planning and marketing efforts to thrive. Ultimately, sustainable practices represent a competitive advantage, besides a moral obligation.”
Rick Clapp-Davis, VP Head of Creative for Green House said “This Earth Day marks a milestone for Green House as we celebrate 20 years of growth and the beginning of our journey to a Greener Age of Creativity for our clients, customers, partners, employees, and planet.” Michael Loper Rodriguez , VP Head of Strategy for Green House “We couldn’t be happier to partner with CGA by NIQ to help broaden a shared mission and message today!”
Click here to learn more about CGA’s consumer solutions for operators and suppliers. Or contact Matthew Crompton, Vice President – Americas here if you’d like to discuss how CGA by NIQ’s On Premise sales measurement and consumer insights can support your On Premise brand strategies.
Green House empowers brands with hyper local creativity rooted in community driven commitments to the planet and future generations. Learn more about our ongoing transformative journey and join us on the journey to a Greener Age of Creativity. www.WeAreGreenHouse.com
