In this guest article, part of a Thought Leadership series from Mondelez World Travel Retail, Managing Director Jaya Singh highlights the company’s ‘Travel Retail Made Right’ sustainability philosophy and shares the results of its Sustainability Survey, carried out in collaboration with research firm PI Insight.
In 2021, Mondelez World Travel Retail (WTR) introduced ‘Travel Retail Made Right’, a sustainability roadmap focusing on four key areas: Products and Packaging; Ethical Promotions; People; and Industry Leading Actions. We have a vision to lead the sustainability journey of the travel retail industry and inspire kinder practices for both people and the planet, writes Jaya Singh.
As our latest industry leading action, we collaborated with research firm PI Insight to conduct a Sustainability Survey* to understand current viewpoints on this key topic among travellers and the implications for travel retail. As part of our ‘Travel Retail Made Right’ philosophy, it was done not only for our own benefit, but rather to inspire industry peers to embrace a sustainability mindset grounded in facts.
It is amazing to see that our finding showed that 70% of shoppers would be more likely to buy an item with sustainability credentials in place. Our aim is to demonstrate how a new approach to sustainability can not only have a positive impact on the world around us, but on our businesses.
Purchasing drivers
The initial part of the survey delved into the influence of sustainable messaging as a purchase driver. It found that 28% of confectionery buyers consider sustainability to be of high importance. Interestingly, this percentage was notably higher among American, Indian, and Brazilian shoppers, while those in the UK and Australia expressed less enthusiasm.
This variance could be attributed to the novelty of sustainable concepts; markets where this approach is relatively new may be more receptive to this messaging. In contrast, shoppers in countries where sustainability is more ingrained in daily life may view it as a standard practice.
Although sustainability was not the key purchasing driver it does have a role to play when other basic needs such as quality, gift worthiness, branding and price are met. The research showed that while sustainability can create an element of difference, brands cannot rely on it alone to drive a successful campaign.
Another noteworthy observation was that, despite the target profile being predominantly female led, the male audience placed greater importance on sustainability messaging (30% for males compared to 27% for females).
The influence of sustainable messaging on activations
When looking at the influence of the sustainable messaging of activations within airports, the sustainable options that were tested outperformed their non-sustainable counterparts across all key areas including appeal, relevance, and novelty. This difference was particularly notable when looking at how new and different the activations were; the sustainable options scored almost 12% higher in this area.
These results were relatively consistent across all regions but were again driven by shoppers based in Brazil and India. Although all activations were considered appealing, relevant, and new and different, the sustainable activations drove more positive, stronger perceptions across each of the key measures. Answers showed more intent, for example very likely rather than just Likely, or strong relevance rather than just relevant.
The influence of sustainable messaging on products
When asked about packaging, sustainable options outperformed the non-sustainable options across all areas. Again, this was led by shoppers based in India and Brazil who showed strong positive perceptions towards sustainable messaging.
However, in the example where iconic packaging and price changed the variation was a lot lower. This tells us that while sustainability should be a key consideration when developing packaging options, the design and cost should hold as much weight in the development process.
Sustainability areas of importance
Packaging initiatives were considered the leading area of importance among confectionery shoppers in travel retail, followed by community projects. In addition, 70% of shoppers noted that they would be more likely to buy an item with sustainability credentials in place.
Fostering a more sustainable approach through collaboration
As the confectionery leader in global travel retail, Mondelez WTR continues to advance our Delighting Travelers category vision to grow the segment for the benefit of all. We are committed to driving accelerated conversion and increasing penetration through three strategic pillars: A Winning Portfolio, Elevating Awareness and Delivering Unique Experiences.
In October 2023, Mondelez WTR became the Trinity Forum’s first ever Sustainability Partner. During the two-day conference, organised by The Moodie Davitt Report and Airports Council International, I had the privilege of presenting delegates with the preliminary results of our Sustainability Survey.
My hope is that it will help the Trinity to collaborate better and could help to overcome some of the challenges that we face today together.
Across all categories, the inflationary environment is resulting in lower spend, but that simply means we need to think of new and creative ways to engage consumers.
Considering the findings of our survey, there is clear evidence that sustainable initiatives are strong purchase drivers in confectionery and that the topic has growing appeal in emerging markets and across genders. This is surely part of the puzzle for us as we look to the year ahead.
Now more than ever, Mondelez WTR is dedicated to bringing added value to our winning portfolio to combat today’s challenges. But to foster a more sustainable approach, collaboration among all stakeholders is crucial.
Let’s take these learnings as a call to action to embrace sustainability – not as an obligation, but as an opportunity. An opportunity to craft innovative solutions, engage in meaningful conversations, and inspire change.
By aligning our interests and working collectively, we can drive a shift towards sustainability, ensuring a healthier planet and a thriving business ecosystem for the future.
*The Sustainability Survey was conducted by PI Insights on behalf of Mondelez World Travel Retail. This research was gathered through a ten-minute online study of 1,207 recent Mondelez buyers in airport duty free stores. The sample includes 200 interviews per nationality (American, Australian, Brazilian, British, Chinese and Indian), with all respondents aged 18+ and having travelled internationally in the last six months. ✈