How widespread is it? The reality of ethical consumption

Recently, Dentsu Inc. released the results of its "Ethical Consumption Awareness Survey 2020" (hereafter referred to as this survey) ( release here ). Based on these findings, we will explain the significance and methods for companies and society to engage with "ethical consumption" in a series of articles. In this first installment, we will explain what ethical consumption is, while introducing the background and results of this survey.

<Table of Contents>

▼Why Survey "Ethical Consumption" Now?
▼COVID-19 Has Heightened Awareness of Ethical Consumption
▼Let's Look at the Future Society from an Ethical Perspective

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Why We Researched "Ethical Consumption" Now

This survey defines ethical consumption as "consumers engaging in consumption activities while considering solutions to social issues or supporting businesses tackling such issues." Incidentally, "ethical" is an adjective meaning "based on moral principles." Consumption, an indispensable part of our lives, is one of the most accessible ways to engage in ethical behavior.

For example, buying fair trade organic chocolate.

Why are fair trade and organic choices good? Because they represent a choice made after considering the background of the chocolate—the working conditions of producers and the production areas.

The chocolate you hold in your hands carries a story: from cultivating the cacao beans, processing them into chocolate, to its delivery. Does this process safeguard the future of the soil and surrounding environment where the beans are grown? Is there fair pricing between producers and sellers? Such considerations arise from the perspective of questioning whether we, as mere consumers, are unknowingly contributing to environmental destruction or labor exploitation.

Ethical consumption means learning about the stories behind products and services, and then consciously choosing what to consume.

In recent years, attention to ethical consumption has grown significantly because it greatly impacts solving the world's urgent challenges—poverty, human rights, and climate change—as well as achieving the common goals of the SDGs.

On the other hand, we often hear the following concerns from companies responsible for CSV or advancing SDGs through their core business:

Cosmetics Client: "Will switching to renewable containers and the resulting price increase drive customers away?"

A certain apparel client: Is there any data showing that eco-friendly products are actually in demand?

Thus, many companies felt significant hurdles when implementing actual initiatives. Therefore, we conducted this survey to explore consumer insights and provide actionable facts that could inform product and communication development for businesses. Consequently, the focus is not only on awareness and empathy toward ethical consumption but primarily on consumers' actual experiences ( ) and expectations regarding ethical initiatives, with industry-specific perspectives and analysis.

Awareness of ethical consumption has heightened due to the COVID-19 pandemic

We will now examine the survey results alongside comments from Rika Sueyoshi, Representative Director of the Ethical Association.

Ms. Sueyoshi began her activities with the Fair Trade Concierge Course (now the Ethical Concierge Course) in 2010, inspired by her experience as a Mystery Hunter on the TV show "World's Mysterious Discoveries!" She then established the Ethical Association, a general incorporated association, in 2015. Since its founding, she has continuously led efforts to promote ethical practices aimed at realizing a sustainable world. Ms. Sueyoshi, a pioneer of ethical consumption in Japan, provided comments based on this survey's results regarding the current state and future outlook of ethical consumption today.

One in four people now know the term "ethical consumption"

Survey results show that 24% of respondents either "understand the meaning" or "know/have heard the term" ethical consumption. Opinions may differ on whether this figure is high or low.

Mr. Sueyoshi stated, "I want to view this survey result positively, as a sign that society is moving forward in a sustainable direction. I started the Ethical Association myself in 2015, but the rise in awareness of ethical consumption and the shift in behavior are incomparable to that time." The year 2015 saw the UN establish the SDGs and the founding of the Ethical Association. These results reveal the steady expansion of ethical consumption in Japan and its potential for further growth.

Approximately 30% of people became more conscious of ethical consumption during the COVID-19 pandemic

The survey also asked about awareness of ethical consumption following the period of self-restraint due to COVID-19 countermeasures.

Ms. Sueyoshi commented, "It's encouraging to see that 30.9% of people became more conscious of ethical consumption during the pandemic, which has presented significant challenges and questions about our way of life. This represents a positive opportunity for change."

Since the survey was conducted at the end of 2020, the social environment surrounding consumers has continued to change daily, and awareness of ethical consumption is expected to grow even further.

After the period of self-restraint, the actions of those who actually put ethical consumption into practice reveal its essential nature.

Ms. Sueyoshi added, "I also want to highlight that 6.2% of respondents answered 'I avoid unnecessary consumption.' We tend to think ethical consumption presupposes 'consumption,' but as the familiar Japanese saying 'knowing when you have enough' suggests, consumption itself doesn't necessarily lead to wealth or happiness, and wasteful consumption increases environmental impact." More than a year into life under COVID-19, it seems likely that more people will return to the importance of "food, clothing, and shelter" and reevaluate the consumption behaviors that support them.

Consumers seek convincing "price" and "product benefits" for ethical goods

Regarding the conditions for ethical consumption, the survey revealed that consumers most value clear explanations about "price," "benefits," and "relevance to their concerns" when purchasing ethical products or services, and whether these explanations are convincing. This means it is crucial to communicate these key points consumers want clarified during the product and communication development stages.

Ms. Sueyoshi stated, " . While transformation isn't easy for any company, this consumer awareness data will encourage businesses to change."

Looking Ahead at Society Through an Ethical Lens

Reflecting on the survey results, Mr. Sueyoshi looks further ahead. "As children from Generation Z and beyond receive education on ethical consumption and the SDGs, societal awareness is expected to accelerate even more. By continuously conducting awareness surveys focused specifically on ethical consumption, we will be able to witness the major transformation of our times," he said.

Consumer demand for ethical products and services is clearly present today. This need will only expand, diversify, and become more universal in the future. Corporate activities will not only respond to the changing consumer mindset but also significantly contribute to achieving the SDGs and realizing a sustainable society.

So, specifically, how should we think, choose, and act? Next time, under the title "Where Are the Business Opportunities for Companies? What Ethical Consumption Makes Consumers Want to Buy?", we will examine the survey findings more concretely from a corporate perspective.

【Overview of Ethical Consumption Awareness Survey 2020】
・Target Area: Nationwide Japan
・Respondent Criteria: Men and women aged 10 to 70
・Sample Size: 125 individuals per gender/age group, totaling 1,000 respondents weighted to reflect population demographics
・Survey Method: Online survey
・Survey Period: November 18–25, 2020
・Research Agency: Dentsu Macromill Insight, Inc.
*Percentage composition may not always total 100% due to rounding to the second decimal place.