Brazil Attitudes towards Ethics and Sustainability Consumer Report 2023

Overview

• What you need to know
• Key issues covered in this Report
• Definition

Executive Summary

• Market overview
• Analyst outlook
  • Figure 1: Analyst outlook on attitudes toward ethics and sustainability, 2023
• Challenges
• Pessimism about environmental issues alienates younger consumers from sustainable habits
• With more frequent extreme weather events, brands will be under more pressure on sustainability targets
• Against lower prices, sustainability loses relevance for consumers
• Opportunities
• Beauty and personal care brands can invest in local activities to offer sustainability and competitive prices
• Brand positioning on social issues can win engaged consumers
• Clearer information about correct waste disposal and reverse logistics programs can increase engagement with recycling

Market Drivers

• El Niño expected to warm global climate in 2023, accelerating climate change
• Government announces action to prevent and control deforestation in the Amazon
• Tax reform may exempt companies that contribute to the environment
• IPCC report calls for an end to the use of fossil fuels and points to irreversible climate impacts
• Brazil recycles 100% of aluminum cans for the first time

Key Players

• Companies and brands
• Samsung creates campaign to publicize its reverse logistics program
  • Figure 2: Samsung recycling campaign
• Natura launches ‘More Beauty and Less Waste’ campaign
  • Figure 3: Natura campaign, Brazil, 2023
• iFood invests in sustainable packaging
  • Figure 4: iFood survey results
• McDonald’s eliminates plastic disposables from its stores
• Nude and Mãe Terra launch a new line of children’s drinks with carbon footprint stamped on the label
• • Figure 5: Zooreta, Mãe Terra and Nude line of drinks for children, Brazil
• Johnnie Walker launches special edition of Black Label with ink from air pollution
  • Figure 6: Johnnie Walker Black Label AIR-INK launch
• Absolut launches vodka in a paper bottle
  • Figure 7: Absolut Vodka in paper packaging
• Oh a Água offers mineral water in plastic pouches
  • Figure 8: Oh a Água pouches
• Case study
• Oil made from Pongamia, a tree native to Asia, is a sustainable and healthy alternative for the food industry
  • Figure 9: Products made from Pongamia, Terviva
• Neutral Foods proves it’s possible to produce carbon-neutral dairy products
  • Figure 10: Items that are taken into account when calculating the carbon footprint of Neutral Foods’ milk.
• • Figure 11: Transformation of manure into green energy

The Consumer – What You Need to Know

Awareness and Understanding of Ethical and Sustainable Concepts

• Most Brazilians do not understand what carbon footprint is
  • Figure 12: Awareness and understanding of ethical and sustainable concepts – Selected item, 2023
• • Figure 13: Launch campaign for Bud Light Next, with no carbs and a neutral carbon footprint
  • Figure 14: Ambev renewable energy institutional campaign
• • Figure 15: Carbon-neutral meat from Silver Fern Farms, New Zealand
• Brands can help young consumers adopt sustainable habits with a positive approach
  • Figure 16: Awareness and understanding of ethical and sustainable concepts – “I have heard of this and I know what it means,” by age group, 2023
• • Figure 17: Plastic Fishing Tournament, Corona
  • Figure 18: Earth Day campaign artwork, Starbucks, China, 2021
• • Figure 19: 100% recycled Pepsi launch campaign, Argentina, 2022
• Local production improves communities’ quality of life
  • Figure 20: Sustainability concept – Selected item, by region, 2023
• • Figure 21: Natura fair trade campaign
• • Figure 22: Empório Mata Atlântica, a project supported by the NGO Auá
  • Figure 23: Website of the “Pueblos Originales” program, which fosters native communities through tourism, Argentina

Impacts and Responsibilities of Sustainability

• Increase in adverse weather events puts pressure on companies
  • Figure 24: Impacts and responsibilities of sustainability, 2023
• • Figure 25: Illustration of the 17 Sustainable Development Goals
• • Figure 26: Klabin goals for sustainable development
  • Figure 27: Petrobrás 10 commitments for sustainable performance
• • Figure 28: Petrobrás campaign “Energy that transforms our society”
• Concerns about water shortages can be an opportunity for concentrated products
  • Figure 29: Consumer’s ethical and environmental concerns, 2023
• • Figure 30: La Finca del Café concentrate coffee, Peru
  • Figure 31: Sorgo soap powder, Sweden

Interest in Products with Ethical and Sustainable Attributes

• Beauty and personal care products with natural ingredients grown by communities can attract consumers through sustainability and price
  • Figure 32: Interest in products with ethical and sustainable attributes – Selected items, 2023
• • Figure 33: Beauty products made with ingredients native to Latin America
  • Figure 34: Some of the ingredients native to the Amazon used in the Natura Ekos line
• Minority groups are more likely to be willing to pay more for products and services from minority-owned brands
  • Figure 35: Interest in products with ethical and sustainable attributes – Selected items, by race and sexual orientation, 2023
• • Figure 36: Promotion of the facial care line for black skin, Negra Rosa
  • Figure 37: Short film promotion, Brazil, 2022
• • Figure 38: Promotion of the Queer Beer Festival, US, 2022

Expectations from Brands

• Transparency is crucial for the effectiveness of sustainable actions
  • Figure 39: Expectations from brands, 2023
• • Figure 40: Promotion of the Samsung Earth Day campaign, US, 2022
• Gen Zs and Millennials have low expectations regarding sustainable actions from brands and companies
  • Figure 41: Expectations from brands, by generation, 2023
• • Figure 41: Cycle to Work website, which highlights the money savings offered by the program, UK
• Brand positioning on social issues can win engaged consumers
  • Figure 42: Ethical and sustainable lifestyle, by expectations from brands, 2023
• • Figure 43: Posts by influencer Dylan Mulvaney sponsored by Bud Light
  • Figure 44: Lina with Ambev employees, Brazil, 2022

Barriers related to Ethics and Sustainability

• Against lower price, sustainability loses relevance
  • Figure 45: Barriers related to ethics and sustainability, 2023
• • Figure 46: Private label food and drinks with ethical and sustainability attributes
  • Figure 47: Personal care products with natural ingredients and sustainability claims
• Packaging should bring clearer information about disposal and reverse logistics
  • Figure 48: Barriers related to ethics and sustainability – Selected item, by socioeconomic group, 2023
• • Figure 49: Back to M.A.C program
  • Figure 50: Simple Organic reverse logistics
• • Figure 51: Section of the Natural One website on recycling packaging
  • Figure 52: Video about recycling food delivery packaging
• Retailers should invest in local products and better inform consumers about their origins
  • Figure 53: Expectations from brands – Selected item, by barriers related to ethics and sustainability, 2023
• • Figure 54: Advertising image of the Nuestros Productores campaign, Cencosud, Chile
  • Figure 55: Launch of salads line grown on urban vertical farms, Penny Market

Appendix – Abbreviations