Table of Contents
Executive Summary
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- Impact of COVID-19 on food and drink with selected ethical certifications
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on food and drink with organic, Fairtrade, Rainforest Alliance and MSC certifications
- The market
- Increased distribution drives sales growth for leading ethical certifications over 2015-20
- Changed working patterns and consumers’ increased environmental awareness to fuel further growth over 2021-26
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- Figure 2: Value sales of food and drink with organic, MSC, Fairtrade and Rainforest Alliance certifications, 2016-26
- Environmental issues come under increased media and government attention in 2020-21
- UK governments take action on the environment and animal welfare
- Companies and brands
- Environmentally friendly packaging claims are widespread, other environmental claims are rarer
- Brands look to make animal and human welfare claims tangible
- Brands and retailers look to showcase their support for charitable initiatives
- The consumer
- Eight in ten adults have bought food/drink with ethical certifications
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- Figure 3: Purchase of food/drink with ethical certifications, by type, 2019 and 2021
- Animal welfare and the environment are important issues to many
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- Figure 4: Reasons for buying ethical food and drink, 2019 and 2021
- Price is less of barrier than previously; certifications need to explain what they stand for
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- Figure 5: Barriers to buying ethical food and drink, 2019 and 2021
- Strong feel-good factor about ethical products, but many doubt they can make a difference
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- Figure 6: Behaviours relating to ethical food and drink, 2021
- Eating seasonally is widely seen as an environmentally friendly act
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- Figure 7: Attitudes towards ethical food and drink, 2021
Issues and Insights
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- Pandemic boosts people’s environmental consciousness, but further education on the multiple sides of sustainability needed
- Need to reassure consumers that their actions make a difference
- Feel-good factor around ethical shopping offers opportunities both for healthy and indulgent products
The Market – Key Takeaways
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- Increased distribution drives sales growth for leading ethical certifications over 2015-20
- Changed working patterns and consumers’ increased environmental awareness to fuel further growth over 2021-26
- Environmental issues come under increased media and government attention in 2020-21
- UK governments take action on the environment and animal welfare
Market Size, Segmentation and Forecast
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- COVID-19 outbreak boosts sales of food and drink with leading ethical certifications in 2020-21
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- Figure 8: Short-, medium- and long-term impact of COVID-19 on food and drink with organic, Fairtrade, Rainforest Alliance and MSC certifications
- Increased distribution drives rapid growth in ethically certified food and drink over 2015-20
- Expansion of own-label drives sales growth for certified products over 2015-20
- Pandemic boosts sales both directly and indirectly in 2020
- Organic benefits from changes in consumer shopping behaviours
- MSC sees sales slip in 2020 due to disruption to mackerel supplies
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- Figure 9: Value sales of food and drink with selected leading ethical certifications, 2015-20
- Shift to more home working and consumers’ increased awareness of ethical issues should drive further sales growth for 2021-26
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- Figure 10: Value sales of food and drink with organic, MSC, Fairtrade and Rainforest Alliance certifications, 2016-26
- Figure 11: Value sales of food and drink with organic, MSC, Fairtrade and Rainforest Alliance certifications, 2016-26
- Market drivers and assumptions
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- Figure 12: Key drivers affecting Mintel’s market forecast, 2015-25
- Learnings from the 2008/09 recession
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- Figure 13: Value sales of organic food and drink, 2007-11
- Forecast methodology
Market Drivers
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- Consumers’ improved financial confidence in 2021 bodes well for ethically certified products
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- Figure 14: Consumers’ confidence in their finances for the coming year, share of population saying they are pretty confident they will be ok, 2020- 21
- Environmental issues come under increased media and government attention in 2020-21
- COVID-19 pandemic heightens focus on food production’s environmental impact
- UK fails to achieve UN biodiversity targets for 2020
- Antibiotic resistance is described as one of the top threats to humanity
- Switzerland holds referendum on pesticides use
- Criticism of certification schemes could undermine consumer confidence
- Fairtrade and FSC are among schemes criticised for failing to sufficiently hold corporations to account
- Rainforest Alliance tightens its standards in response to criticism from Latin American banana associations
- MSC slammed by Netflix documentary
- UK governments take action on the environment
- English government unveils its sustainable development goals
- Deposit return schemes planned for the various nations
- Concerns raised that post-Brexit trade deals will compromise animal welfare
- Defra looks to raise animal welfare standards and to reform welfare labelling
- Environmental concerns drive meat and dairy reduction trends
- Food companies join coalition calling for greater environmental responsibility
Companies and Brands – Key Takeaways
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- Environmentally friendly packaging claims are widespread, other environmental claims are rarer
- Brands look to make animal and human welfare claims tangible
- Brands and retailers look to showcase their support for charitable initiatives
Launch Activity and Innovation
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- Ethical and environmental claims feature on 60% of food and drink launches in 2020
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- Figure 15: Share of UK food and drink launches with ethical and environmental claims, 2017-21
- Environmentally friendly packaging is the most widespread ethical claim
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- Figure 16: New product launches in the UK food and drink market, by selected ethical claims, 2017-21 (sorted by 2020)
- Leading soft drinks brands switch to recycled plastic
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- Figure 17: Evian Natural Mineral Water, 2020
- Figure 18: Examples of juice drink and squash launches highlighting their use of recycled plastic prominently on-pack. 2020
- Supermarkets use salvaged ocean plastic for fish packaging
- Brands and retailers take steps to reduce plastic use
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- Figure 19: Tesco Finest Red Velvet Cake, 2021
- Brands continue to reduce packaging size to eliminate unnecessary air
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- Figure 20: Young’s Chip Shop Omega 3 Fish Fillets in Crisp Bubbly Batter, 2021
- Brands and retailers alter products’ shapes to require less packaging
- Move away from black plastic continues
- A few brands explore plant-based plastics
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- Figure 21: Innocent Guavas, Pineapples & Apples Smoothie, 2021
- Animal welfare claims appear on 6% of food and drink launches in 2020
- Tesco and Morrisons introduce ‘affordable’ high welfare certifications for chicken
- Ben & Jerry’s makes its animal welfare credentials more tangible
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- Figure 22: Ben & Jerry’s Rain-Dough Cookie Dough Twist Ice Cream, 2021
- Rhug Estate highlights the environmental and animal welfare benefits of organic
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- Figure 23: Rhug Estate Organic Beef Mince, 2020
- Sustainable claims feature on 14% of food and drink launches in 2020
- Trend for re-using surplus ingredients continues
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- Figure 24: Flawsome Orange Juice, 2021
- New vodka brand allows shoppers to track its tree-planting initiative
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- Figure 25: Sapling Vodka, 2020
- People-related ethical claims appear on 6% of launches in 2020
- Retailers expand their range of Fairtrade-certified own-label products
- Moo Free highlights its ethical hiring practices
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- Figure 26: Moo Free Oscar the Bear Chocolate, 2020
- Carbon neutral claims are extremely rare
- Meat/dairy-free brands highlight their lower carbon emissions
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- Figure 27: The Unbelievable ALT Tender Beefless Pieces, 2020
- Figure 28: Oatly Garlic & Cucumber Creamy Oat Spread, 2021
- Lidl and Wyke Farms team up to develop carbon neutral cheese
- More companies go carbon negative
Advertising and Marketing Activity
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- Brands and retailers publicise their efforts to tackle food poverty
- The Co-op promotes its value range as allowing people to shop ethically on a budget
- Kellogg’s focuses on feel-good aspects of healthiness and ethics
- Various brands emphasize their sustainable credentials
- Brands urge consumers to switch to meat/dairy substitutes to help the planet…
- …including Oatly’s controversial contribution
- Bottled water brands highlight their care for the environment
- Inch’s Cider calls out local sourcing and use of green energy
- Brewdog promotes its attainment of carbon negative status
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- Figure 29: Facebook post by Brewdog promoting its carbon negative status, 2021
- Hellmann’s links up with Channel 4 on food waste campaign
- Supporting British farms…
- …and pubs
- Maltesers pledges support for new mothers’ mental health
- Various brands urge consumers to build a better world post-pandemic
The Consumer – Key Takeaways
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- Eight in ten adults have bought food/drink with ethical certification
- Animal welfare and the environment are important issues to many
- Price is less of barrier than previously
- Need to explain more about ethical certifications
- Strong feel-good factor about ethical products, but many doubt they can make a difference
- Eating seasonally is widely seen as an environmentally friendly act
Impact of COVID-19 on Consumer Behaviour
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- Consumers’ increased environmental consciousness adds urgency for companies to be seen as proactive on sustainability
- Companies must prove to consumers their ethical credentials
- Find ways to tap into consumers’ resolve to cut back on food waste
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- Figure 30: Onken Natural Set Yogurt, UK, 2021
- Localism trend boosts independent shops
- Growth in community spirit makes it essential for brands to demonstrate their support for their own local communities
Awareness and Purchase of Food and Drink with Ethical Certifications
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- Eight in ten adults have bought food/drink with ethical certifications
- Purchasing is high even among the less well-off
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- Figure 31: Awareness and purchase of food and drink with ethical certifications, 2019 and 2021
Awareness and Purchase of Food and Drink with Ethical Certifications by Type
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- Free range is the most widely bought ethical certification
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- Figure 32: Awareness and purchase of food and drink with ethical certifications, by type, 2021
- Purchasing rises for numerous certifications
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- Figure 33: Purchase of food/drink with ethical certifications, by type, 2019 and 2021
- Six in ten adults buy three or more ethical certifications
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- Figure 34: Repertoire of ethical food/drink certifications bought, 2021
Reasons for Buying Ethical Food and Drink
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- Animal welfare and environmental concerns are neck and neck as top motivations for buying
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- Figure 35: Reasons for buying ethical food and drink, 2019 and 2021
- Consumers’ interest in animal welfare does not always translate to buying
- Need for makers of organic products to focus more on the animal welfare aspects
- Many people see the environment as important, but this does not always benefit certified products
- A desire to avoid unwanted substances motivates 29% of buyers
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- Figure 36: Nouveaux Champs Planète Végètal carrots, 2021
Barriers to Buying Ethical Food and Drink
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- Price is the principal barrier, but less so than previously
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- Figure 37: Barriers to buying ethical food and drink, 2019 and 2021
- Explain to consumers in more detail what the different schemes entail
Ethical Issues Deemed Most Important for Food and Drink Companies to Prioritise
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- Animal welfare is seen as top priority by 48% of adults
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- Figure 38: Ethical issues deemed most important for food and drink companies to prioritise, April 2021
- Consumers’ focus on animal welfare does not always translate to buying
- Good opportunities for products supporting both animal and human welfare
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- Figure 39: International examples of products referencing both high animal welfare and fair pay for farmers, 2017-21
- Need to educate consumers on the multiple aspects of sustainability
- Need to strike a balance between reducing packaging use and avoiding food waste
- Worker/farmer welfare is valued by 37% of adults
Behaviours Relating to Ethical Food and Drink
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- Strong feel-good factor around ethical food and drink
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- Figure 40: Behaviours relating to ethical food and drink, 2021
- Promote healthy products with a ‘good for you, good for the planet’ message
- Portray ethical certifications as enhancing the treat aspects of indulgent products
- Need to reassure consumers that their actions make a difference
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- Figure 41: This Isn’t Chicken Dark Soy & Garlic Pieces, 2021
- Larger companies need to make particular efforts to prove their ethical commitments
- Find ways to harness the power of recommendations
Attitudes towards Ethical Food and Drink
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- Seven in ten adults see eating seasonally as helping to reduce environmental footprint
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- Figure 42: Attitudes towards ethical food and drink, 2021
- Various options for companies to tap into the consumer interest in seasonality
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 43: Best- and worst-case forecast of value sales of food and drink with selected leading ethical certifications, 2020-26
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