QUAL & QUANT INVESTIGATION:
CLIMATE CHANGE VS COST OF LIVING CRISIS
THE EXAM QUESTION

As climate change and the cost-of-living crisis battle for our attention, what are the impacts on consumer willingness to buy sustainable products?

We know that high inflation has consumers focused on finding ways to prevent their expenditure from sky rocketing. So, when record temperatures and the resulting media coverage has climate change feeling more real than ever, how big an impact is that having on consumers’ motivations and what is the net effect on their willingness to pay more for sustainability?

THE ANSWER

Recent UK temperature highs have, for the moment, heightened both the palpability and perceived urgency of climate change. And yet the intense pressure consumers feel to keep control of their expenditure means that 79% of those who were previously willing to pay more for sustainable products say they have already stopped buying them

Any psychological tension caused by the simultaneous pressures of climate change and the cost-of-living crisis are relatively easy for consumers to resolve by adopting 1 or more simple strategies

Consumers are…

PLACING THE RESPONSIBILITY FOR CHANGE ELSEWHERE

READILY ACCEPTING THAT ‘I CAN’T DO IT ALL, JUST ‘MY BIT’

SAVING MONEY AND THE PLANET SIMULTANEOUSLY

THE APPROACH

Qual: we asked 20 consumers to talk to us about what they are/are not willing to do in the interests of sustainability and how that is/isn’t changing
Quant: 500 consumers surveyed (nat rep sample)

SO WHAT?

Consumers are likely to be less willing to pay more for sustainable products for some time to come. Brands built on sustainability credentials will need to consider how they can explicitly represent good value vs ‘standard’ brands. All brands can win from helping customers adopt more sustainable choices and behaviours without it costing more

Climate change vs cost of living crisis

Experiencing life in the UK at 40 degrees has made the reality of climate change feel tangible in a way that data never could. And yet, at the same time, consumers are experiencing a financial squeeze which leaves the majority turning away from sustainable products in order to save money

On the one hand…

  • Consumers feel they’ve had a taste of what life in the future will be like as the planet continues to warm up: they struggled to sleep, work and had to stay indoors
  • For many this has resulted in a level of concern they hadn’t previously felt- for their children & grandchildren but also for the residents of already hot parts of the world and the potential for mass migration

But one the other…

79%

of consumers who used to buy sustainable products say they’ve now stopped because they’re too expensive *

JOANNA
We have a young daughter and thinking about the reality in her future has made me think again
I’ve stopped buying eco cleaning products and switched back to ‘normal’. I just can’t while everything else costs more
Consumers are avoiding tension by:

So, how are consumers resolving the tension between the urgency of climate change and an unwillingness to spend on sustainability?

ABDICATING RESPONSIBILITY

Now that a cost-of-living crisis has hit, many consumers are ‘postponing’ their sustainability contributions until the financial squeeze ends. This is easier to justify if you choose to believe that the responsibility for saving the planet lies with large organisations and the super rich and that personal contributions will have little impact

43%

of those who have stopped buying sustainable products say that sustainability will have to wait until they’re less financially squeezed*

 

MARINA
I’ve learnt that it isn’t down to us. We are forced to feel guilty about a problem the super rich need to solve.
The space project Jeff Bezos embarked on produced more carbon than a billion people in their whole lifetime
ELISABETH
My son complained about me shopping at Primark but I explained that while all of the clothing retailers are as bad as each other, even the expensive ones, there’s no point worrying about where you shop
Consumers are avoiding tension by:

ACCEPTING ‘I CAN’T DO IT ALL, JUST ‘MY BIT’’

For most people, there are changes they’re willing to make in order to live more sustainably and others which are just too big or too difficult. Rather than viewing this as hypocritical or not doing enough, consumers tend to focus on the things they are happy to change as evidence that they’re ‘doing their bit’

EMMA
I grow my own veg and I’ve cut back on our energy and water use. The hot tub has gone, I’ve lowered the water temp on the boiler, stopped tumble drying...
but...
I can’t use my car less, I need it for work and getting the kids to school, and I just can’t afford an electric one
JENNY
I’ll only use Ecover washing up liquid. It doesn’t harm fish so I assume it won’t harm us either! And there’s a place nearby where I can get 50p off for refilling
but...
I can’t stop putting bleach down the toilet, it’s the only thing that works properly
Consumers are avoiding tension by:

EMBRACING WAYS TO SAVE MONEY AND THE PLANET

The need to save money is driving change which would have been unlikely for environmental reasons alone; people are cutting back on energy and water consumption, driving less, buying second hand more, eating less meat, avoiding food waste, re-thinking holidays and finding re-usable and refillable alternatives. While people are less likely to make such sacrifices and compromises when they don’t come hand in hand with saving cash, they are nevertheless celebrated as sustainability wins

57%

of those who have stopped buying sustainable products say they’re finding cheaper or free ways to act more sustainably

 

HANNAH
I’ve been meaning to for ages but I started using beeswax food wraps. I feel better not using clingfilm but also it means I don’t have to keep buying it!
VICKY
Vinted saves clothing going to landfill and it saves me a fortune! My teenage son thinks it’s cool so it’s an easy win.
LILA
I’m going back to being vegetarian, I’m considering vegan, because it’s the most sustainable diet but also it’s cheaper too.
* Based on a nat rep sample of 500

OUR KEY RECOMMENDATION

Consumers will be less willing to pay more for sustainable products for some time to come. Brands built on sustainability credentials will need to consider how they can explicitly represent good value vs ‘standard’ brands. For example, through…

  • Clearly communicated price parity with less sustainable alternatives or potential longer- term savings
  • Clearly communicated subscription / loyalty-based price reductions which achieve (or get close to) parity with less sustainable alternatives
  • Passing on cost savings from reduced packaging (stripping back or offering recycling / refill / re-use options)

All brands will benefit from helping customers to…

  • Simultaneously embrace sustainability and cash saving wins
  • Make more sustainable decisions without additional cost