Ethical shopping numbers grow despite consumer spending crunch

Consumers are continuing to face a number of headwinds that impinge on their discretionary spending. Interest rates, energy prices and food bill inflation are among the factors hitting public wallets. Yet spending on ethically sourced products has been maintained and has even seen an increase, bucking expectations that principles are swiftly ditched when consumers are being hit in the wallet.

The Fairtrade Mark, now 30 years old in the UK, saw income grow in 2023 to £13 million (2022: £12.8 million). While there are a limited number of cycle products signed up to the Fairtrade Mark – the likes of Torq is – the broader message from the public for retail brands in all industries is that ethical shopping matters more than ever, including during economic dips. This latest news from Fairtrade supports previous findings that consumers are being increasingly swayed by ESG claims.

Fairtrade Foundation CEO Mike Gidney said: “Fairtrade is all about building a fairer future for people in low-income countries who grow and make the things we rely on every day: our food, our clothes.

“That’s an amazing achievement and is thanks to the increasing dedication of companies in changing the way they trade, driven by huge, unstinting support from the British public.”

Similarly, sustainability is a long-running topic that has considerable momentum behind it, and the cycle trade has been making some headway in this area. Meanwhile the likes of Tern recently revealed it was donating $70,000 to social and environmental projects as part of its annual Tern Gives Back initiative – Tern allocates a 1% minimum of the previous year’s profits to initiative and organisations that work towards positive social or environmental change.