Predicting shifts in consumer shopping habits in the upcoming years.
In the rapidly evolving world of e-commerce, sustainability and meaningful consumption are becoming increasingly important, reflecting a global shift in consumer preferences. According to World Finance magazine, more than half of the past 15 years' consumption can be attributed to emerging markets, indicating a growing demand for sustainable products and practices.
Sustainability is no longer just about producing and disposing of products sustainably, but also about how we work and think, and what's important to us. This 'meaningful consumption' is indeed the antithesis of the discount store craze of the 2000s.
Brands are responding to this shift by adopting eco-friendly practices, ethical sourcing, and offering sustainable packaging options. The use of recyclable, biodegradable, and compostable packaging materials is rising, with innovative companies like Returnity offering reusable mailers to reduce waste. Brands are also embracing repair, refurbishment, recycling, rental, and subscription models to cut down on single-use products.
The Asia Pacific region, in particular, is seeing a reshaping of e-commerce due to social commerce and AI-driven tools. Sustainability concerns are significant, with nearly half of shoppers abandoning carts due to related issues. Social media platforms are expected to dominate e-commerce in this region by 2030, potentially influencing how sustainability is marketed and perceived. AI will also play a crucial role in enhancing customer experience and providing personalized, sustainable shopping options.
The shift towards sustainable practices can attract premium prices and enhance brand loyalty, offering economic benefits to companies. The move towards sustainable packaging and circular economy models is expected to reduce environmental waste significantly, aligning with consumer preferences for eco-friendly options.
However, implementing sustainable practices may require significant investments in infrastructure and technology, posing challenges for smaller businesses in emerging markets. The growing demand for meaningful consumption presents opportunities for new brands to emerge with a focus on sustainability and for existing brands to transform their offerings to meet evolving consumer demands.
The global wellness industry is expected to grow by around 50% from 2018 to 2024, and long-lasting experiences are increasingly valued, while mere possession is losing significance. Brands may need to restructure their business models, question delivery methods, or change their service offerings to meet the changing demands.
For 2021, Statista and Amazon predict an e-commerce turnover of $4.9 trillion, a 165% increase over the past five years. Currently, 4.6 billion people use the internet, representing 60% of the world's population. E-commerce usage could multiply in the near future, according to WirtschaftsWoche.
Investors can capitalize on this trend by considering investment options such as the iShares MSCI EM Consumer Growth UCITS ETF and the BGF Future Consumer Fund. Companies helping others improve their business models could also benefit from this shift towards sustainability. The future remains exciting and presents a great opportunity for all involved in the e-commerce industry.
Sustainability and meaningful consumption are driving economic and social policy changes within the e-commerce industry, with an increasing number of brands investing in eco-friendly practices and sustainable packaging options as a means to attract premium prices, enhance brand loyalty, and reduce environmental waste. This shift towards sustainability, as supported by various investment funds and growing global demand, is presenting opportunities for new sustainable brands to emerge and for established ones to transform their offerings.
In the Asia Pacific region, where social commerce and AI-driven tools are reshaping e-commerce, there's a significant focus on sustainability as well. A growing number of shoppers in this region are consciously considering the environmental impact of their purchasing decisions, making it crucial for brands to market and perceive sustainability effectively through personalized, sustainable shopping options and the use of social media platforms.
