Growth in more environmentally focused products in stores

In Australia, the market for environmentally friendly grocery products is experiencing notable growth. Research indicates that over 60% of Australian consumers engage in environmentally positive actions, a figure that has increased since 2022. Additionally, a significant portion—around 65%—of consumers are willing to spend more in sustainable food and beverages particularly when products that are locally sourced, ethically produced, and packaged in recyclable materials.

This shift suggests a broader consumer consciousness about sustainability, influencing purchasing decisions across various demographics and sectors.

Several key trends are delivering growth in the market for environmentally friendly products in the grocery sector notably:

1. Plant-Based Products: There is a surge in plant-based foods, which are seen as healthier and more environmentally sustainable compared to traditional animal products. This category includes alternatives to dairy, meat, and snacks made from plant-based ingredients.

2. Sustainable Packaging: As consumers become more environmentally conscious, there’s a growing demand for biodegradable, compostable, and recyclable packaging. Innovations in packaging materials, including plant-based and minimal packaging solutions, are gaining traction.

3. Upcycled Foods: Products that use food waste or byproducts to create new items are becoming increasingly popular. This trend not only reduces waste but also appeals to consumers looking for unique and sustainable options.

4. Local Sourcing: Products that emphasize local production and reduce carbon footprints associated with transportation are increasingly favoured. This local focus also ensures freshness and supports local economies.

5. Organic and Natural Products: While growth in organic products has been robust, there’s a notable shift toward products labelled as “natural,” which appeal to consumers seeking fewer additives and chemicals.

6. Environmental Claims and Certifications: Products backed by credible environmental certifications are seeing heightened interest. Consumers are looking for transparency in sourcing and production practices, as well as tangible commitments to sustainability.