Just under two fifths (38%) of consumers have made greater efforts to seek out more environmentally-friendly beverage brands over the past two years, which could present an opportunity for coffee and tea manufacturers, FMCG Gurus has said.
According to the research firm, 71% of consumers say that they are now more concerned about the environment as a result of COVID-19, meaning that sustainability-friendly behaviour will continue to be a hot topic for the considerable future.
Importance Of Sustainability Credentials
'Over the last decade, the hot drinks industry has faced a high level of scrutiny other ethical and environmental practices, especially in developing economies,' FMCG Gurus said.
'As consumers increasingly seek out brands that they deem to be green and clean, it will be of high importance that coffee and tea brands demonstrate sustainability credentials along the whole of the supply chain in a clear and transparent manner. At the same time, it is crucial that these claims are deemed to be credible by consumers and that brands are not engaging in greenwashing in order to command a premium price.'
A FMCG Gurus study from last year found that 58% believe that brands 'should be doing more' to protect the planet, with 73% of consumers concerned about carbon emissions, 55% concerned about water pollution and 49% concerned about the ethical treatment of local farmers; all areas that coffee and tea manufacturers are well-positioned to address.
'Hot drink brands need to be proactive in communicating their sustainability credentials, promoting initiatives such as efforts taken to provide a fair wage to local farmers, the replenishment and repair of natural resources, and efforts taken to reduce carbon footprint levels,' the research firm said. 'This information needs to be communicated in a simple and transparent manner.'
Blockchain Builds Transparency
Brands operating in the sector could also look to utilise technology such as blockchain to ensure that shoppers have access to information about supply chain policies, and boost transparency.
'This is something that will appeal to more sustainably minded consumers and will also increase willingness to pay extra for products if they know they have been formulated in a socially responsible manner,' FMCG Gurus added.
Earlier this year, the Suez Canal blockage led to some supplies of Rainforest Alliance and UTZ-certified coffee being affected. Weather conditions have also affected tea and coffee production in key markets such as Brazil and India in recent months.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
