The Ethical Food Consumer - UK - 2021

OVERVIEW
Key issues covered in this Report
COVID-19: market context
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Impact of COVID-19 on food and drink with selected ethical certifications
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
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
Figure 3: Purchase of food/drink with ethical certifications, by type, 2019 and 2021
Animal welfare and the environment are important issues to many
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
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
Figure 6: Behaviours relating to ethical food and drink, 2021
Eating seasonally is widely seen as an environmentally friendly act
Figure 7: Attitudes towards ethical food and drink, 2021
ISSUES AND INSIGHTS
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
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
COVID-19 outbreak boosts sales of food and drink with leading ethical certifications in 2020-21
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
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
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
Figure 12: Key drivers affecting Mintel’s market forecast, 2015-25
Learnings from the 2008/09 recession
Figure 13: Value sales of organic food and drink, 2007-11
Forecast methodology
MARKET DRIVERS
Consumers’ improved financial confidence in 2021 bodes well for ethically certified products
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
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
Ethical and environmental claims feature on 60% of food and drink launches in 2020
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
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 
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
Figure 19: Tesco Finest Red Velvet Cake, 2021
Brands continue to reduce packaging size to eliminate unnecessary air
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
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 &amp; Jerry’s makes its animal welfare credentials more tangible
Figure 22: Ben & Jerry’s Rain-Dough Cookie Dough Twist Ice Cream, 2021
Rhug Estate highlights the environmental and animal welfare benefits of organic
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
Figure 24: Flawsome Orange Juice, 2021
New vodka brand allows shoppers to track its tree-planting initiative
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
Figure 26: Moo Free Oscar the Bear Chocolate, 2020
Carbon neutral claims are extremely rare
Meat/dairy-free brands highlight their lower carbon emissions
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
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
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
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
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
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
Eight in ten adults have bought food/drink with ethical certifications
Purchasing is high even among the less well-off
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
Free range is the most widely bought ethical certification
Figure 32: Awareness and purchase of food and drink with ethical certifications, by type, 2021
Purchasing rises for numerous certifications
Figure 33: Purchase of food/drink with ethical certifications, by type, 2019 and 2021
Six in ten adults buy three or more ethical certifications
Figure 34: Repertoire of ethical food/drink certifications bought, 2021
REASONS FOR BUYING ETHICAL FOOD AND DRINK
Animal welfare and environmental concerns are neck and neck as top motivations for buying
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
Figure 36: Nouveaux Champs Planète Végètal carrots, 2021
BARRIERS TO BUYING ETHICAL FOOD AND DRINK
Price is the principal barrier, but less so than previously
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 
Animal welfare is seen as top priority by 48% of adults
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
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
Strong feel-good factor around ethical food and drink
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
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
Seven in ten adults see eating seasonally as helping to reduce environmental footprint
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
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 43: Best- and worst-case forecast of value sales of food and drink with selected leading ethical certifications, 2020-26