Over the past couple of years, there has been a shift in consumers' buying behaviour and values as they are becoming increasingly aware of the impacts of their consumption. This has led to an increase in ethical consumption. The 2018 UK ethical consumers report shows that Millennials and Generation Z are demanding for more sustainable options as 49% of those under 24 have intentionally avoided a product or service due to the negative environmental impact of the product or the company itself in the past year.¹ Another report confirmed that living an ethical or sustainable lifestyle was deemed extremely essential or important by 71% of European consumers in producing a sense of well-being or wellness.²

One of the reasons consumers are pursuing ethical buying is their belief that it supports small businesses as well as makes the supply chain more transparent. However, there are other factors that are affecting this shift in consumption behaviour and through this article I will attempt to understand why ethical consumption is increasing.

"Even during a pandemic, when shopping in large corporations would be cheaper and more accessible, Britons have still made the conscious effort to shop ethically."

Many of the products purchased in this day and age come from companies that do not offer respectable wages and working conditions to its employees. Companies are not considering the positive social values they could generate in their pursuit of making large profits. However, consumers with their growing awareness and purchasing power have the potential to curtail a number of unethical practices by demanding for products that are ethically produced, fairly traded, cruelty free, and have low carbon footprint among others. Through ethical consumption, we can create a society that is committed to helping communities and facilitating positive social impact.

The food industry is one of the sectors which has been significantly impacted by ethical consumption. Between 2016 and 2018 the number of people opting for a vegetarian diet has risen 52% and the number of vegans by 153%.³ This shows that more and more people are concerned about animal welfare and want to purchase cruelty free products. The clothing sector has also seen an increase in demand for thrifted and second-hand clothes. More and more people are choosing sustainable brands that have longer shelf life in lieu of fast fashion that have a negative impact on the environment. According to the 2021 Resale Report by ThredUp the second hand clothing market is expected to be two times bigger than the fast fashion market and would be worth 84 billion by 2030.⁴

Consumers are also growing increasingly concerned about climate change and the environmental impact of their consumption behaviour. They are turning to ethical shopping in order to reduce their carbon footprint. Choosing green energy companies can help tackle climate change and lessen the damage caused by fossil fuels. Sites like ethicalconsumer.org rate and rank companies on their response to a range of environmental issues which include pollution, climate change, environmental reporting to help consumers make informed decisions.

The fashion industry alone produces between 2 to 8 per cent of global carbon emissions.⁵ Textile dyeing is also the second largest polluter of water globally and it takes around 2,000 gallons of water to make a typical pair of jeans.⁶ However, the move from fast fashion to purchasing second hand clothing can reduce the industry’s carbon footprint tremendously. Buying used clothes instead of new ones displaces the carbon dioxide equivalent (CO2e) emitted from harmful new clothing production reducing the carbon footprint by 82 per cent.⁷

The 2018 UK report on ethical consumption asserts that consumers want their spending to have a positive social and environmental impact, which extends into practices such as ethical banking and investment. Ethical banks and financial service providers are extremely vigilant of where they invest their customers' money.⁸ They do not invest in sectors that are considered harmful to society, like fossil fuel, mining, fracking, weapons and arms technology among others. Instead they find sectors that have a positive social and environmental impact and are based on shared ethical principles.

The reason for this increase in ethical banking is the consumers’ desire to know where their money is going. With more attention on ‘dirty investments’ of large banks, consumers are attempting to ensure that their money is not going into problem sectors that could have negative impacts on the environment as well as the society. This increased awareness and attention has led to innovation in ethical banking and sustainable investment.

State intervention

Government expenditure and intervention have already affected the solar panel and fuel-efficient car industry. In 2017 Solar panel sales plummeted by 87.4% in 2017 as the government cut subsidies for at-home solar energy generating which have present day negative effects.⁹ Due to the Car Tax of 2017 where owners of cleaner cars will have to buy a greater tax which disincentivizes them from purchasing more environmentally friendly cars.¹⁰ State policies should be promoting ethically and environmentally friendly products and services rather than going after them, which makes these products and services inaccessible to the average consumer.

Increased expenses

Ethical products cost more than products from unethical companies because ethical companies incur higher costs as they pay suitable wages to their employees and source their raw materials ethically. Unethical companies usually sell their products cheaply because they offer low wages and have nothing to offset. While this is the case, there are a large number of consumers who cannot afford ethical products and therefore have to resort to cheap products from the aforementioned unethical companies. An example of this was the popularisation of vintage stores that sold products at an accessible and affordable rate. However this increased demand for vintage clothes caused the prices to go up making them less affordable for average consumers. Effort is required at state and policy level to make ethical products more accessible and affordable to an average consumer.

Lack of awareness

Consumers lack awareness and information on ethical consumption as well as the availability of ethical options in the market. Consumers need to understand that most of the products available and on sale today are owned by a small number of companies. Companies can promote one of their brands as ethical but continue to sell other unethical brands. While this can be marketed as being ethical, one can see the supply chain is not entirely ethical due to the parent company’s conducts.

Consumers often misunderstand or don’t understand what makes a product ethical. There are varying definitions of ethical products but no clarity as to what is considered ethical and what is not. Therefore, setting up clear definitions and criteria for what makes a business, product and services ethical should be the first step in creating public awareness.

Ethical consumption has continued to increase with the COVID-19 pandemic as reports assert that British consumers are shopping more ethically by buying organic food and supporting local stores to name some adjustments. During the pandemic and even with the easing of restrictions in 2021, 32% of shoppers are aiming to purchase more plant-based food, 27% are purchasing fair trade production and 52% are reducing single-use plastic and becoming more energy efficient at home.¹¹ All of this put together ethical consumption is set to exceed £100bn in 2021.¹²

The consumption pattern in the clothing and fashion industry is following suit, with demand for reused clothes going up. Ethical consumption has created a wave where consumers vote with their currency in order to lead a more sustainable life which supports local communities and businesses. Even during a pandemic, when shopping in large corporations would be cheaper and more accessible, Britons have still made the conscious effort to shop ethically. This action supports the notion that ethical buying will only get bigger.

¹https://www.ethicalconsumer.org/research-hub/uk-ethical-consumer-markets-report

²https://store.globaldata.com/report/cs1703ts--trendsights-analysis-environmental-responsibility-meeting-consumers-environmentally-conscious-expectations/?utm_source=mediacenter&utm_medium=pr&utm_campaign=171026a_gd_cm_pr_European_consumers%20&utm_nooveride=1

³https://www.triodos.co.uk/articles/2018/the-rise-and-rise-of-the-ethical-consumer

⁴https://www.thredup.com/resale/

⁵https://www.unep.org/news-and-stories/story/putting-brakes-fast-fashion

⁶Ibid.

⁷https://www.thredup.com/resale/#size-and-impact

⁸https://www.ethicalconsumer.org/research-hub/uk-ethical-consumer-markets-report

⁹https://www.theguardian.com/environment/2016/apr/08/solar-installation-in-british-homes-falls-by-three-quarters-after-subsidy-cuts

¹⁰ https://www.rac.co.uk/drive/advice/legal/april-2017-new-car-tax-rules-explained/

¹¹https://www.co-operative.coop/media/news-releases/conscious-consumerism-forecast-to-hit-record-highs-as-it-continues-to-rise

¹²Ibid.