Demand for Sustainable Products Perseveres

Reading Time: 2 mins
By Published On: May 8, 20240 Comments

Despite cost of living pressures, sustainable and healthy products remain a priority for Australian customers.

New research from Naturally Good and YouGov has revealed that despite ongoing economic pressures, demand for natural, chemical-free products claiming to be better for both personal health and the planet is high among sustainable-minded consumers. 

The survey, conducted ahead of Naturally Good’s natural products trade event at ICC June 3-4 in Darling Harbour, delves into shopper’s behaviours.

Commenting on the findings, Naturally Good Event Director, Sofie Teh, stated, “There’s no mistaking that these results clearly indicate that a growing number of Australians are actively seeking products that are better for their health and better for the planet.”

“It should also be considered that despite the continual rise in the cost-of-living, Australians are still prioritising these products, showing a really promising future for the industry.”

Forty-four percent of respondents reported that they always or frequently purchase food and beverage products that claim to be better for you and better for the planet. Similarly, 38 percent do so for home care and cleaning products.

Millennials are leading the charge, with 47 percent reporting that they always or frequently purchase home care and cleaning products claiming to be better for you and better for the planet, compared to 38 percent of Gen X and 32 percent of Baby Boomers. 

Additionally, Gen Z and Millennials are more likely than older generations to say they are purchasing more of these products compared to three years ago.

Naturally Good’s data identifies a trend towards independent retailers and specialty stores is gaining momentum among Millennial and Gen Z consumers who are increasingly prioritising unique, authentic shopping experiences that align with their personal values and lifestyles.

Thirty-two percent of retailers prefer to purchase their ‘better for you’/‘better for the planet’ beauty and personal care products from independent retailers rather than mainstream retailers. This may be due to limited ranges available in those stores, or attributable to independent retailer’s practices aligning with their values.

Interestingly, Power Retail recently made similar findings related to a retailer’s ethics, that showed customer loyalty is influenced by how sustainable and ethical a retailer’s practices are. In a recent survey, we found that 51 percent of customers would shop again from a retailer with sustainable or ethical practices. We found that 55 percent of customers are also willing to pay more for a product made with ethically sourced or sustainable materials and practices, even as financial pressures mount. 

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

Share this story!

Leave A Comment

Heather Bone