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Article


IS 2023 THE YEAR FOR ACTIONABLE SUSTAINABILITY?

By
Tim Denman
February 7, 2023

‍


AT A GLANCE‍

 * 71% of grocers have made sustainability a 2023 priority.
 * 76% of grocers report that improving sustainability is a c-level goal.
 * Waste reduction is grocers’ number-one sustainability priority.
 * 37% of shoppers will pay a premium for sustainable products.
 * Shoppers will pay between 11%-17% more for sustainable products.

‍

Grocers have filed their future roadmaps with strategies and initiatives
designed to address consumers' sustainability concerns and build an eco-friendly
enterprise intended to compete in a quickly evolving marketplace.

While sustainability is a hot topic, the movement has quickly evolved from a
buzzword to an action item. Savvy grocers make sizeable investments in programs
and personnel devoted to building their present and future sustainable
enterprises.

In its January 2023 "Digital Grocery Performance Scorecard," Grocery Doppio
asked a series of questions to more than 2,300 grocery executives designed to
uncover their sustainability plans for the next 12 months. The monthly
scorecards benchmark the current state of digital grocery and provide unique
insight into industry trends.


LEADERSHIP TAKE THE REIGNS

As sustainability grows in the public consciousness, it has grown in lockstep
within grocery organizations. According to the "Digital Grocery Performance
Scorecard," sustainability has become a priority at the industry's highest
levels, with 76% of grocers reporting that improving sustainability is a c-level
goal within their organization.

With three-quarters of grocers elevating sustainability to a c-level objective,
it is not surprising that more than 7 in 10 (71%) say that improving
sustainability is a 2023 priority. To help turn sustainability goals into
sustainability action, 43% of grocers plan to appoint an executive to lead
enterprise sustainability over the next 12 months.

Where will grocers focus their sustainability efforts? Waste reduction is the
number-one priority, with 83% of grocers reporting it as a top priority. Joining
waste reduction as top sustainability priorities are energy utilization, named
by 77% of grocers, and packaging improvement, cited by 66% of those surveyed.


MEETING SHOPPER EXPECTATIONS

Many consumers are concerned about sustainability and make purchase decisions
based on consumer goods companies' and retailers' commitment to
eco-consciousness.

Thirty-seven percent of shoppers report that they will pay a premium for
sustainable products, and nearly three-quarters (73%) would like
sustainability-related product information on the product label and digital
channels to aid decision-making. How much of a premium would
environmentally-focused consumers be willing to pay for a sustainable product?
According to Grocery Doppio research, shoppers would pay between 11%-17% more
for sustainable products.

Sustainability consciousness extends beyond individual product choices and
influences consumer decisions on which grocer to shop. More than 6 in 10 (61%)
shoppers report that their preferred grocer has adopted sustainability practices
in the past 12 months.

While a large segment of grocers has adopted sustainability practices, the
industry as a whole has not done an excellent job communicating those
initiatives with shoppers. Just 23% of shoppers say that their preferred grocer
does a good job communicating their sustainability efforts.


MONTHLY INSIGHT

For more insight into the current state of sustainability and how the digital
grocery industry is performing overall, be sure to read the entire "State of
Digital Grocery Performance Scorecard, January 2023" report.

‍

TAGS


Sustainable Growth
Sustainability
Customer Experience
Grocery Performance
Industry Performance

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