Climate change concerns disrupting Canadians’ consumption habits: survey

Climate change and inflation are increasingly seeping into the minds and wallets of Canadian consumers.

A new survey by accounting firm Ernst and Young finds Canadians are buying less and changing the way they eat due to rising concerns about the environment and rising prices of food.

The EY Future Consumer Index Survey found 84 per cent have rising concerns about climate change and 96 per cent of Canadians have deepening concerns about inflation. Monica Chadha, EY Canada retail leader, says these concerns will be reflected in the coming festive months when consumption normally ticks up.

“As we head into the holiday season and beyond, we’ll see more shoppers take control and do their research to optimize for both economic and environmental benefits,” Chadha said.

In an effort to help the environment, 38 per cent of consumers indicate they’re planning to buy less, the survey found. Fashion accessories were the most popular product category in which consumers are planning to buy less, followed by toys and gadgets, clothing, footwear, and cosmetics.

“Consumer products companies can’t ignore the large percentages of Canadians who are changing their lifestyles and consumption habits in response to climate change and affordability concerns,” said Elliot Morris, EY Canada grocery and consumer packaged goods leader.

Not only is climate change impacting consumers’ fashion choices, it’s also heavily impacting their grocery bills. Nearly one-third of Canadians surveyed have had to change the food they eat due to climate change impacting prices and availability.

Almost half of consumers say they’re planning to order less — a 15 per cent increase from last year — and about 40 per cent of consumers say they’re planning to transition meals with friends to at-home dinner parties.

Different generations, different actions

Both Baby Boomers and Gen Z are taking personal actions with the planet in mind — but their methods of impact differ.

The survey notes while the older Baby Boomer generation is more likely to act sustainably, the Gen Z generation is more likely to spend sustainably.

In the survey, Baby Boomers stood out as the best at bringing reusable bags to the store and recycling or reusing packaging.

Meanwhile, the younger generations are more likely to pay for sustainable goods and services, as well as check a company’s sustainable practices online.

“People are more informed now about what sustainability means and have better access to information to assess whether a brand is living up to its promises,” said Morris.

“Companies need to get ahead and respond now by creating new products or reformulating existing ones to make them healthier and more sustainable, so they can protect their profitability and the brand experience.”