Sustainability has developed into a core concern for both businesses and consumers in the last few years. However, recent data reveals a significant disconnect between what consumers prioritise when making sustainable purchase decisions and what businesses emphasise in their product offerings. This gap, which stems from differing views on what makes a product sustainable, could undermine efforts to foster a truly green economy.

By understanding these diverging priorities and aligning business strategies with consumer expectations, companies can enhance their value proposition, build stronger relationships with their customers, and drive meaningful change.

Consumer priorities: Materials matter

When it comes to sustainability-conscious buying habits, consumers are clear: the materials a product is made from hold the highest importance.

In our recent survey, we reviewed the Personal Buying Habits of respondents, which highlighted materials as the most critical factor when choosing sustainable products. 50% of those surveyed value products made from environmentally friendly or recycled materials and those that are low or free of plastic. Additionally, 25% of respondents placed emphasis on products that help reduce their energy use or waste, demonstrating a clear preference for tangible, functional sustainability benefits that impact daily life.

Consumers also consider recyclability and waste reduction, though these factors are less prioritised compared to material composition and energy efficiency. This focus on materials underscores a desire for direct, visible sustainability features that resonate with their personal values and impact their purchasing decisions.

Business focus: Manufacturing takes center stage

In contrast, businesses often define their sustainability efforts differently. As highlighted in the About the Products chapter, 75% of surveyed businesses attribute their products' sustainability to environmentally friendly manufacturing processes.

Other commonly cited factors include local sourcing of materials, designing for durability, and end-of-life recyclability. While these are important aspects of sustainability, they do not always align with consumer expectations. For instance:

• Local sourcing and durability rank lower in consumer priorities compared to material composition.
• Energy reduction—a critical factor for consumers—is rarely a focus in business strategies.
• Manufacturing efficiency, which businesses champion, is among the least significant considerations for consumers making purchase decisions.

This disconnect suggests that while businesses focus on broad, systemic sustainability measures, consumers gravitate toward product-specific attributes that they can easily see and evaluate.

The misalignment: Why it matters

This disparity between consumer desires and business priorities reveals an opportunity for improvement. If businesses overlook the aspects of sustainability that consumers value most, they risk alienating their target audience, despite their well-intentioned efforts.

1. Transparency and Visibility
   Consumers often want to see and feel the impact of their sustainable choices. A product made from recycled materials or renewable resources provides a tangible indicator of sustainability, offering reassurance to buyers. In contrast, an environmentally efficient manufacturing process, though impactful, is harder for consumers to assess and appreciate.
2. Perceived Value
   When businesses emphasise sustainability attributes that consumers do not prioritise, it can diminish the perceived value of their efforts. For instance, a company may invest heavily in manufacturing innovations but fail to communicate these benefits effectively to a consumer base that is primarily concerned with material composition.
3. Market Opportunity
   Addressing this gap is not just about alignment—it’s about leveraging a market opportunity. Businesses that cater to consumer preferences for sustainable materials can differentiate themselves, build loyalty, and capture a growing segment of eco-conscious buyers.

What can businesses do?

To better align with consumer expectations, manufacturers and retailers must reconsider their sustainability strategies. Here’s how:

1. Prioritise Sustainable Materials
   Shift focus to sourcing and using environmentally friendly materials. Whether it’s recycled plastics, sustainably harvested fibres, or bio-based alternatives, emphasising materials that reduce environmental impact can resonate strongly with consumers.
2. Communicate Material Choices
   Clear, transparent communication about the materials used in products is essential. Labels, certifications, and marketing efforts should highlight these attributes to help consumers make informed decisions.
3. Balance Manufacturing Efficiency with Material Impact
   While efficient manufacturing processes remain vital for overall sustainability, businesses should integrate this with consumer-facing benefits. For example, pair environmentally friendly production with the use of renewable or recycled materials to create a holistic sustainability story.
4. Bridge the Knowledge Gap
   Educate consumers about the importance of manufacturing sustainability. While materials are a priority for consumers, raising awareness about how production processes impact the environment could encourage buyers to consider these factors as well.
5. Invest in End-of-Life Solutions
   Consumers are increasingly concerned about the lifecycle of products. Offering recycling programs, designing for repairability, and creating biodegradable or compostable products can address these concerns and align with consumer values.

Case in Point: Small vs Large Businesses

The SPI report also revealed how business size influences sustainability strategies. Smaller businesses often use recycled materials due to their flexibility, while larger companies focus on sustainably sourced materials, leveraging their scale to secure ethical supply chains.

This distinction provides insights into how businesses of all sizes can innovate:

• Small Businesses can experiment with unique, eco-friendly materials and appeal to niche audiences that prioritise sustainability.
• Large Businesses can use their resources to scale sustainable practices, such as integrating renewable materials across extensive product lines.

Both approaches can be effective, but the key is to keep consumer priorities at the forefront.

The path forward

The sustainability movement is at a crossroads, where businesses and consumers must work together to drive meaningful progress. For this to succeed, businesses need to close the gap between their sustainability initiatives and consumer expectations.

By shifting the focus to materials, enhancing communication, and offering visible sustainability benefits, manufacturers and retailers can align their strategies with what truly matters to consumers. This not only strengthens customer relationships but also amplifies the collective impact on the environment.

In the end, sustainability is not just about doing the right thing—it’s about doing the right thing in a way that resonates. By understanding and addressing the misalignment between business offerings and consumer preferences, companies can create a more sustainable future that benefits everyone.