Innovation

The Consumer Push for Sustainability and How Companies and Technology Can Rise to the Challenge

Photo by Devin Wright

Sustainability is no longer a peripheral concern—it has become a central priority for consumers worldwide. Recent surveys highlight a significant shift in consumer attitudes and behaviors toward greener living and purchasing habits. A global survey of 10,281 consumers revealed that 78% agree environmental sustainability is important, the concept appeals to them, and they aspire to lead more sustainable lives. Moreover, 63% have taken moderate or significant steps to modify their lifestyles, including adopting greener buying habits, in an effort to become more sustainable.

In the United States, this trend is even more pronounced. A 2023 survey of 2,414 U.S. adults found that 62% of people “always or often” seek products to purchase because they are sustainable for the environment—an impressive jump from just 27% in 2021. Even in specific product categories like mattresses, 82% of consumers consider sustainability when making a purchase, although 52% express concern that a sustainable mattress might cost too much.

These statistics underscore a powerful message: consumers are not only aware of environmental issues but are actively seeking to make a difference through their purchasing decisions. This shift presents both an opportunity and a responsibility for companies, particularly those in the consumer packaged goods (CPG) sector.

The Role of CPG Companies in Driving Sustainable Change

“CPG companies have the ability to make a change for the better, and now is the time to hit a homerun,” says JD Ambati, Founder & CEO of EverestLabs. With consumers increasingly prioritizing sustainability, CPG companies are uniquely positioned to lead the charge by integrating eco-friendly practices into their operations.

One critical area where CPG companies can make a significant impact is packaging. Traditional packaging materials often contribute to environmental degradation due to their non-recyclable nature and the resources required for production. By rethinking packaging design and material selection, companies can reduce waste and lower their carbon footprint.

Leveraging AI Vision Technology for Sustainable Packaging

Innovations in technology offer promising solutions to these challenges. “AI vision is a technology that provides much-needed data to CPG brands and packaging manufacturers to optimize packaging design and material selection. This technology can inform these organizations if their packaging is getting recycled and if they are meeting their ESG goals,” explains Ambati.

AI vision systems can analyze vast amounts of data from recycling facilities to determine how different packaging materials fare in real-world recycling processes. This insight enables companies to make informed decisions about packaging materials that are not only sustainable but also more likely to be recycled effectively.

Investing in such technology is not just a nod to environmental responsibility; it’s a strategic move that aligns with consumer expectations. As more people actively seek sustainable products, companies that adopt these practices stand to gain a competitive advantage.

The Future of the Recycling Industry

“Investing in technology is the future of the recycling industry,” Ambati asserts. Advanced technologies like AI and robotics can revolutionize recycling by improving the efficiency and effectiveness of sorting and processing materials. This not only reduces waste but also contributes to a circular economy where materials are continually reused, minimizing the need for new resources.

However, technology alone isn’t enough. “While recycling is integral to enabling a fully circular economy, it starts with the packaging—creating sustainable packaging and implementing sustainable practices and processes,” says Ambati. Companies need to integrate sustainability into every aspect of their operations, from product design to supply chain management.

Bridging the Gap Between Consumer Intent and Action

Despite the growing interest in sustainability, there remains a gap between consumer intent and action. While 78% of consumers express a desire to live more sustainably, only 63% have taken steps to modify their lifestyles. Cost concerns also play a role; for instance, over half of consumers worry that sustainable mattresses might be too expensive.

Companies can help bridge this gap by offering affordable sustainable options and educating consumers about the long-term benefits—both environmental and economic—of investing in sustainable products. Transparent communication about efforts to reduce environmental impact can build trust and encourage consumers to make more sustainable choices.

E-commerce as a Catalyst for Sustainable Shopping

Interestingly, sustainable products are performing better online than in physical stores. Seventy-five percent of product categories saw sustainable products achieve a higher market share when sold via e-commerce. Online platforms offer consumers easier access to information about product sustainability, allowing them to make more informed choices.

This trend suggests that companies should leverage online channels not only to sell sustainable products but also to educate consumers about their environmental initiatives. Digital platforms can serve as powerful tools for storytelling and engagement, amplifying the impact of a company’s sustainability efforts.

A Collective Effort for a Sustainable Future

The growing consumer demand for sustainability is a clarion call for companies to step up their efforts. By embracing innovative technologies like AI vision and committing to sustainable practices, businesses can meet consumer expectations and contribute to a healthier planet.

“Companies need to think about how they can implement these sustainable practices into their everyday processes—for the good of our planet,” emphasizes Ambati. It’s not just about meeting ESG goals or appealing to a market trend; it’s about taking responsibility for the environmental impact of business operations.

As consumers continue to prioritize sustainability, companies that proactively adapt will not only thrive in a competitive marketplace but also play a pivotal role in driving global environmental progress. The time for incremental change has passed; now is the moment for bold actions that align business success with the health of our planet.

Photo by Devin Wright

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