Kantar Better Futures Report 2023: What the changing consumer landscape means for businesses

On the heels of the IPCC’s AR6 report, the latest Kantar Better Futures Report 2023, in partnership with the Sustainable Business Council, has provided a clear indication of where consumer sentiment is heading towards climate change.

The report highlights that despite the ongoing threat of climate change, including Cyclone Gabrielle, Kiwis' commitment to sustainability has dropped, with concerns over the cost of living now occupying the top spot.

Despite that, the findings highlight a notable increase in sustainability activism. With this in mind, it is more important than ever for businesses to take action and ensure they are doing their part to Toitū Te Taiao – sustain and protect our planet. At Toitū Envirocare, we believe that carbon accountability should be a top priority for all organisations, and we urge business leaders to take a closer look at their carbon footprint and work towards a more sustainable future.

The Kantar report, which surveyed more than 1,000 Kiwis, found that 43% of respondents were most concerned about the cost of living, while 36% cited climate change as their primary concern. While a number of people view climate change as a secondary pressing issue, it is important to note that it remains a significant concern for a large portion of the population.

Of those surveyed, only 23% believed that businesses were doing enough to address climate change, and this is where we believe there is a clear opportunity for companies to step up and make a difference. At Toitū Envirocare, we help businesses with an internationally recognised carbon programme, providing them with the tools and expertise they need to reduce their emissions and create a more sustainable future.

One of the most worrying findings of the Kantar report was that Kiwis' commitment to sustainable living had dropped by 17% since 2019, with just 32% of respondents saying they were willing to pay more for sustainable products. However, this varies between demographics and there is still a strong expectation for businesses to do the right thing from a sustainability and accountability perspective. This represents a clear challenge for businesses, who must find ways to create sustainable products that are affordable for the average consumer.

However, we believe that this challenge also presents an opportunity for companies to differentiate themselves in a crowded marketplace. By demonstrating a commitment to sustainability and taking tangible, credible action to reduce their carbon footprint, businesses can build trust and loyalty with consumers, who are increasingly looking for companies that share their values.

One of the most beneficial insights for businesses generated from the report is the consumer segmentation of four sustainability audience profiles. These identify how willing Kiwis are to take sustainability action, how strong the related values are, and the scale. The categories were:

• 35% identified as ‘Actives’: High sustainability action, strong sustainability values
• 22% identified as ‘Believers’: Low sustainability action, strong sustainability values
• 23% identified as ‘Considers’: High sustainability action, low sustainability values
• 10% identified as ‘Dismissers’: Low sustainability action, low sustainability values

Since the last report, the active consumer segmentation had the biggest change with an increase of 5% and remain a key group that are significantly more likely to have or will undertake a range of sustainable actions.

Behind this though, intent is driving change more notably than behaviour. Over half (53%) of people are concerned about the impact of climate change, marking a significant rebound since the COVID-19 pandemic. It’s also directly influencing their purchasing behaviour and how they interpret claims and initiatives being taken by businesses.

We believe that now is the time for business leaders to take note of this changing landscape in Kiwi consumer behaviours. If they haven’t already, they must start prioritising climate change, which remains a significant threat. It is up to all of us to play our part in protecting the environment and building a better future for generations to come.

The Kantar Better Futures Report highlights the need for businesses to take action and work towards a more sustainable future. At Toitū Envirocare, we believe that carbon accountability should be a top priority for all organisations, and we urge business leaders to take a closer look at their carbon footprint and work towards reducing their emissions. By demonstrating a commitment to sustainability and taking tangible action, businesses can build trust and loyalty with consumers and mark a positive impact on the environment.

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