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Consumers are willing to pay a premium for FMCG products that take social responsibility seriously

Millennials shopping for FMCG products that take social responsibility

Good news, FMCG industry: it turns out that Australian consumers are willing to pay a premium for food and grocery products that have socially responsible benefits.

We dug into the data to uncover some insights to inform food and grocery product marketing and development. Read on to learn more, or book an intro with our research experts to gain further insight into your specific market.


A strong appetite for socially responsible products

Our September Catalyst survey showed that 67% of Australians will pay a premium for a product that is made in Australia, 60% would pay more for plastic-free packaging, 59% for ethical sourcing, 57% for environmentally friendly materials, and 50% for carbon neutral products. 

Those numbers represent a significant amount of extra cash ready to be spent on FMCG products that take action to address these issues.

FMCG Report Ethically Sourced/Environmentally

Who really cares?

Our research shows that Gen Z and Millennials are most willing to pay a premium for the aforementioned socially responsible product benefits — a fact that is not surprising, considering this group will face head-on the impacts of industry on our environment in the future. 

When it comes to Australian-made products, once again, we see the younger generations caring the most, though Baby Boomers don’t fall far behind. 70% of Millennials cite ‘made in Australia’ as the factor they are most willing to pay a premium for, followed by Boomers (67%) and Gen Z (65%).

Ethical sourcing has also been proven important to the majority of Australians, as 59% state they would pay a premium for products that are ethically sourced. This charge is led by Millennials above all other groups, as 2 in 3 state this is a benefit worth paying more for. Beyond that, 1 in 2 from the Gen Z, Gen X and Baby Boomer generations agree — making ethical sourcing an important consideration for FMCG brands.

In addition, many consumers are looking to make charitable donations by purchasing and using the brands they love. We found that food and grocery brands targeting the young will find profit in supporting charitable causes, with just under two-thirds of both Gen Z and Millennials indicating they would pay a premium for this product benefit.


How to take action, and test for success 

Now you’ve heard what consumers value, the opportunity is to ensure that your products and communications stack-up. When it comes to creating new concepts, or tuning up products that already exist in-market, testing with real prospects is crucial. 

Glow’s market research platform supports innovation through uncovering opportunities, identifying trends at ultra-speed, and uncovering the why behind product results (a ‘why’ which is increasingly about a brand’s social responsibility). 

For existing products, it’s important to test your communications to ensure your messages are resonating in a rapidly changing market. Glow’s research platform offers a quick, yet robust, way to track, and understand consumer opinion. Learn how Sirena Tuna secured ongoing differentiation through Glow here.

With expert advice on call, Glow’s research platform allows you to dive deeper into your market. We’ve made it easy to rapidly gather consumer insights and see detailed analysis in real time. It’s the quick, sharp way to keep up with consumers — so you can conquer your category with product benefits that matter.

Learn more about how Glow works for FMCG brands, or book an intro with our research experts to get started.