At the outset of the coronavirus pandemic, things are messed up, no place for thinking about sustainability in marketing. People were panic-buying and pantry-loading en masse, snapping up whatever products were left on the shelf. While a volatile economy puts strains on consumers' wallets that may have impacted their willingness to pay a premium for environmentally conscious brands.
However, according to Randi Kronthal-Sacco, senior scholar of marketing and corporate outreach at the NYU Stern Center for Sustainable Business and an author of the report: "Sustainably marketed products did, in fact, survive the pandemic, and thrive in many instances." Why is the sector still developing despite facing clear challenges?
Inelastic and less sensitive to price
Sustainability marketed products tend to be inelastic and less sensitive to price fluctuations than conventional fast-moving consumer goods, which are currently contending with rising inflation. People are willing to shell out more and buy in lower volumes. Common consumer groups are millennial, upper-income, college-educated,...
Pushing for sustainable change
At the same time, demand for sustainable goods is climbing as consumers seek out everyday ways of lowering their impact on the environment. Increasing the effects of climate change and environmental pollution have made people more and more interested in sustainable and friendly products.
Valuable young demographics care more deeply about fighting climate change and will reject brands they view as out of line with their social values. Nearly a third of Gen Zers and 28% of millennials have taken an action, like donating or volunteering, to tackle climate change in the past year, according to Pew Research.
Sustainability-marketed products have also adapted well to channels that are becoming significant for marketers. The e-commerce share for sustainability-marketed products, online shopping presents opportunities to offer more detail on why a brand is sustainable as compared to the other products.
Educating the population
Marketers have long made sustainability a part of their messaging to the public. In social media, there has been an abundance of communication around sustainability and how brands are incorporating a sustainable agenda into their offerings.
Not only increased demand by consumers, but more brands are also viewing sustainability as a key differentiator in ethical consumption.