Environment Research 2015Summary Report

Millward Brown for Tetra Pak

July 2015

Country coverage

DEVELOPING MARKETS

DEVELOPED MARKETS

Consumers and Industry view

241 industry influencers• 20 interviews / country• Food Manufacturers & Retailers• NGO’s / Research / Industry Associations• Online (qualitative)

12 markets

6,044 consumers• 500 interviews / country• Online (quantitative)

USA

BRAZIL

UK

FRANCE

GERMANY

SWEDEN

RUSSIA

INDIA

TURKEY

SOUTH AFRICA

JAPAN

CHINA

Key findings 2015

RECYCLING AND

RENEWABILITY

are some of the key areas where industry expects innovation from the packaging sectorEnvironmental performance of equipment is also increasingly regarded as fundamental

BRAND EQUITY is the most important driver for environmental initiatives

of influencers declare environment has an impact on brand equity70%

BARRIERS related to technology, quality and availability of sustainable materials have all declined vs. 2013

ON-PACK is the #2 preferred channel for environmental communication, after corporate websites

ENVIRONMENTALACTIONS

have purchased an environmental product, even it costs more

70%

have avoided a particular product or brand for environmental reasons66%of consumers always/often look for environmental information on beverage packaging

39%

HAVING KIDS highly influences consumers in looking for environmental products

of consumers mention lack of information as a barrier to buying environmental products

29%

are among the preferred channels to read and follow environmental information

ON PACK AND

SOCIALNETWORKS

INDUSTRY CONSUMERS

Influencers mention recycling and renewability among expected innovations

Which innovation do you expect the beverage carton industry should to focus on to improve the environmental profile of carton package?

SUSTAINABLE PRODUCT CHAIN

• Value of materials continues growing• Increasingly asked by consumers, retailers and

legislative requirements

RECYCLING RENEWABILITY• Complementary to recyclability• Growing consumers awareness• Need to find proper communication tools

FOOD WASTE

• Use of renewable materials• Equipment efficiency (energy, water, waste )

• Shapes that allow package to get completely emptied

• Minimization of losses during distribution

CARBON / WATER FOOTPRINT

• Hard to be understood by consumers• Water consumption highly linked to social issues• High fit into circular economy initiatives

PACKAGING WEIGHT

• Further reduction of packaging weight when possible

NEW NEW

Environmental certifications

•Industry influencers are concerned about additional costs and processes related to certifications

•But most of them say environmental certifications and labels are a powerful communication tool to consumers and make their brand more meaningful

Most companies have environmental initiatives in place

Does your company have any environmental initiatives and/or environmental products or services?Can you please specify which environmental factors / initiatives are you thinking about?

Collection and recycling

Use of renewable materials

Environmentalperformanceof equipment

Use of responsibly sourced materials

ENVIRONMENTAL ACTIVITIES

YES

NO

Brand equity is the most important driver for environmental initiatives

In your opinion, which are the most important drivers of environmental initiatives in your company?Choose the most appropriate answers from the list below or add anything more in the space “other”

Industry increasingly monitors the impact of

environmental initiatives on brand image and company reputation

BRAND EQUITY(e.g. reputation, stakeholders relation)

COST REDUCTIONS(e.g. operational performance, logistic

efficiency, fee / tax cost savings)

RISK AVOIDANCE(e.g. regulatory compliance)

REVENUE GENERATION

(e.g. consumers / retailers preference)

OTHER

Base: Total sample (241)

JPN, UK, USA, RUS, SA

GER, UK, TUR

GER, JPN

FRA, USA, BRA, RUS

ABOVE AVERAGETOTAL %

62% of manufacturers monitor brand equity

Does your company have a system to measure and monitor the value of its brands among the end consumers?

And most of them say environment has an impact on it

Base

(74)

IMPACT OF ENVIRONMENT ON BRAND EQUITY TOTAL %

YES

NOMy company DOES NOT CONSIDER ENVIRONMENT as a factor to measure the value of our brands

YES

NO

SYSTEM TO MONITOR BRAND

EQUITY

Impact of some barriers is lowering

Production cost remains the key

barrier environmental initiatives, but

materials availability and quality, and

adequate technology are no longer considered unsourmountable

barriers

SIGNIFICANT CHANGE

Which are the barriers that prevent your company from having environmental initiatives?

PRODUCTION COSTof products with

low environmental impact

LACK OF CONSUMER DEMAND

for products with low environmental impact

AVAILABILITY OF MATERIALS

with low environmental impact

LACK OF ADEQUATE TECHNOLOGY

To produce products with low environmental impact

QUALITYof products with low

environmental impact

Base: Total sample (2015) (241)

% BARRIERS TO ENVIRONMENTAL INITIATIVES

And focus on lack of products, available information and qualityAlso consumers mention cost as key barrier

Which of the following aspects could make you / make you not buy an environmentally sound product?

BARRIERS TOPURCHASEENVIRONMENTALPRODUCTS

%

GREATER COSTof environmentally sound products

compared to standard ones

LACK OF ENVIRONMENTALLY

PRODUCTSavailable to purchase

LACK OF AWARENESSin distinguishing what is or is not an

environmentally sound product

LOWER QUALITYof environmentally sound

products compared to standard ones

LACK OF INFORMATIONon environmentally sound products

Environment is increasingly important in purchasing decisions

ACTIVE CONSUMERSSorted and set aside waste for recycling

Purchased product with environmentally sound packaging

Looked for environmental information / labeling

Avoided a particular product or brand for environmental reasons

Environment is an increasingly

important factor in consumers’

purchasing decisionsPurchased environmental product, even if it costs more

Below is a list of activities. Thinking about the past year, please indicate which of the following actions you have actually done:

STEADLY GROWING SINCE 2005

ENVIRONMENTAL ACTIVITIES

Families with kids look more for environmental products

51% of consumers buy environmental products

“To preserve the environment for future

generations”

Moreover, compared to total sample:• More aware about environmental

concepts (37% vs 29%)• More interested in environmental

topics ( +7%)• Pay more attention to

environmental labelling (54% vs 39%)

PURCHASED A PRODUCT WITHAN ENVIRONMENTALLYFRIENDLY PACKAGING

doneFREQUENTLY

doneSOMETIMES

SOCIO-DEMO PROFILEDifferences from global average

Male/Female

High educational level

High income

Children (yes)

Base (3174)

Impact on brand consideration and value

Makes memuch more likely to consider the brand

Makes mea little more likely to consider the brand

Makesno difference

Puts me off considering the brand

Makes the brand worth more than

it costs

Makes the brand worth what it costs

Makes the brand worth less than it costs

If you were about to choose a beverage brand, how would environmentally sound packaging affect your consideration of the brand?How would environmentally friendly packaging change your opinion about the value of this brand?

IMPACT OF ENVIRONMENT ON

BRAND CONSIDERATION

IMPACT OF ENVIRONMENT ON

BRAND VALUE

AN ENVIRONMENTALLYSOUND PACKAGING…

On-pack is an effective touch-point to communicate on packaging’s environmental profile

Through which channel have you recently seen, read or followed any environmental information about beverage packaging? (Consumers)Through which channels does your company communicate its environmental initiatives to consumers? (Food Manufacturers and Retailers)

Top channel in developing countries (61%) and for NGO’s/research/industry associations (72%)

(241)

2.40Average number of mentions

(1758)Base: Yes at Q35

3.05

Social networks are increasingly used by consumers to look for

environmental information, especially in emerging

markets

Industry influencers widely communicate through their

corporate website, while consumers prefer using

traditional and social media

DETAIL OF MEDIARECALL/USAGE

TV / RADIO

ON BEVERAGESPACKAGING

NEWSPAPERS /MAGAZINES

SOCIAL NETWORKS

AT SUPERMARKETS / IN STORES

CORPORATE WEBSITE

E-NEWSLETTER / E-MAIL

TOTAL

Consumers pay attention to environmental logosDo you think consumers pay attention to environmental labeling / logos on packaging?

When you shop for beverages, do you typically look for environmental logos on the products you buy?

Base:Base:

500

510

516

500

503

500

500

502

503

500

510

500

YES NO

TOTAL

DEVELOPED

DEVELOPING

TOTAL

DEVELOPED

DEVELOPING

SWEDEN

GERMANY

RUSSIA

JAPAN

FRANCE

BRAZIL

USA

SOUTH AFRICA

INDIA

CHINA

UK

TURKEY

INDIA

CHINA

TURKEY

BRAZIL

RUSSIA

SOUTH AFRICA

GERMANY

FRANCE

SWEDEN

USA

UK

JAPAN

ALWAYS + OFTEN SOMETIMES NEVER

May 2015 / 15

Consumers pay attention to environmental logos

Do you think consumers pay attention to environmental labeling / logos on packaging?

Please indicate how much you agree or disagree with each statement, using a scale of 1 to 5, where 1 means you ‘not at all agree’ and 5 means you ‘strongly agree’.

TOTAL

DEVELOPED

DEVELOPING

SWEDEN

GERMANY

RUSSIA

JAPAN

FRANCE

BRAZIL

USA

SOUTH AFRICA

INDIA

CHINA

UK

TURKEY

… are useful in helping me

understand the environmental impact of the

package

…make the beverage product more appealing

TOP 2 BOXES

AGREEMENT ON STATEMENTS ABOUTENVIRONMENTAL LOGOS

DEVELOPINGMARKETS

YES NO

Understanding of FSCTM logo is growingHigh among influencers, ramping up among consumers

TOTAL

DEVELOPED

DEVELOPING

YES NO

UK

GERMANY

FRANCE

SWEDEN

USA

BRAZIL

JAPAN

RUSSIA

SOUTH AFRICA

CHINA

INDIA

TURKEY

TOTAL

DEVELOPED

DEVELOPING

GERMANY

UK

FRANCE

BRAZIL

SWEDEN

SOUTH AFRICA

INDIA

CHINA

RUSSIA

TURKEY

USA

JAPAN

Base BaseYES NO

Do you know FSC logo? Now you will see some environmental logos or labels that you can find on food and beverage packaging. Which of them have you seen or heard of? Please select all the logos this applies to.

FSCTM contributes to make the host brand more meaningful to consumers

FSCTM certification ensures that products come from well managed forests that provide environmental, social and economic benefits.Do you think this logo can make your brands… • unique from other brands in consumers’ mind?• more meaningful for consumers than other brands?

Base: Food Manufacturers / retailers (119)

UNIQUE

YES

NO

YES

NO

MOREMEANINGFUL

For more information, please contact

Roberto CavicchioliConsumer Intelligence

Francesca PrioraEnvironment

July 2015 • www.tetrapak.com