Nearly half of European consumers (46%) say they are "extremely concerned" about climate change and private label products help them save money, according to the latest edition of the EY Future Consumer Index, cited by EuropeanSupermarketMagazine.

Climate change and food shift

According to the report, 42% consider changing the food they consume due to the effects of climate change on price or availability, while 29% have already been forced to make different food choices.

Additionally, around 56% of respondents believe that consumers should push companies to achieve better social and environmental outcomes.

"We are now witnessing a tangible change in consumer perceptions and behaviors," commented Kristina Rogers, EY Global Consumer Leader.

"They are not only looking to consume more sustainably but need to adapt their lifestyles to help address the challenges brought by climate change.

"Historically, there has been a gap between intention and action for governments, companies, and consumers themselves in their efforts to address sustainability, but the real effects of climate change on people's lives narrow this gap and will force an acceleration of actions taken by consumer companies to build resilience in business and to support the necessary changes that consumers will make in what they buy and how they buy it."

Consumers are worried about their money

The 13th edition of the EY Future Consumer Index surveyed over 22,000 consumers from 28 countries.

It found that up to 80% of consumers worldwide remain "worried" about their finances, with 54% saying they intend to buy less in the future, both to save money (according to 73% of respondents) and because they feel they do not need new items (49%).

However, 39% of respondents worldwide attributed lower spending to help the environment, with fashion, clothing, and footwear among the categories many are looking to spend less on.

Other ways consumers are stretching their budgets, according to the EY study, include more cooking and home entertainment (up 9% and 5%, respectively, compared to October 2022) and ordering fewer packaged foods (43%).

Private label to the rescue

Approximately 61% of respondents say private label products help them save money – with just under two-thirds (64%) noting that store brand products "meet their needs." However, the study found that consumer interest in private label has decreased overall.

In fact, more than a third (35%) of consumers are increasingly willing to pay extra for brands they trust – up ten percentage points from February 2022.

During the winter holidays, 61% of respondents participated in public events, with 71% saying they intend to "wait" to make some purchases until these events, compared to just 48% in November 2021.

"Consumers have repeatedly demonstrated their ability to adapt to the cumulative disruptions they have faced," Rogers added.

"They are constantly reassessing what they consider essential and increasingly avoiding non-essential impulse purchases, but experience remains crucial as a deciding factor for consumers when choosing to shop online rather than heading to a store."