‘Sustainable retail’ is more than just a buzzword. It can be a path to improving their brand image among consumers – and even boosting their bottom lines.

In fact, a PwC survey found that global consumers are willing to pay almost 10% more for sustainably produced or sourced products. Not only that, the same consumers say that the factors that would have the biggest impact on their purchasing decisions are production methods that reduce waste, the use of eco-friendly packaging, and a focus on nature and water conservation.

Around the world, the number of eco-conscious shoppers is growing rapidly – and so is their purchasing power. A 2023 Kantar study found that consumers in Latin America (LATAM) who are most concerned about sustainability have more purchasing power and spend more per shopping trip than those who are not concerned about sustainability. Meanwhile, a 2024 academic study found that consumers in the Asia-Pacific (APAC) region are willing to spend 55% more on sustainable goods, while 32% of European consumers said the same.

In the US, eco-friendly retail is expected to be worth more than $400 billion by 2032, due in large part to shopping preferences among the millennial and Gen Z generations. Gen Z consumers are especially environmentally conscious, as 64% say they prefer to buy products with eco-friendly packaging, while 63% say they prefer products that make their environmental impact clear.

‘In Latin America, the share of consumers who are passionate about sustainability and other environmental issues has grown quickly, and it’s likely to keep growing,’ said Carlos Eduardo Santos, business development director for Latin America at Sensormatic Solutions. ‘Retailers who want to reach this segment now – and in the future – can’t afford to wait to implement sustainable solutions. Being early adopters of sustainable solutions is crucial to demonstrating their commitment to the environment.’

But at a time when retailers around the world are focused on doing more with fewer resources and staff, finding creative ways to adapt to global supply chain disruptions and keeping up with rapidly changing consumer preferences, implementing the kind of sustainability initiatives that consumers want can often be a challenge.

Fortunately, there’s a way to demonstrate their commitment to the environment and sustainable manufacturing while improving loss prevention and inventory management outcomes. It’s called SPX, a new sustainable Acousto-Magnetic (AM) label from Sensormatic Solutions that is designed to help protect merchandise – and the planet.

Most major retailers are already using traditional tags and labels to deter theft and improve profits. But while organisations like Sensormatic are using more sustainable manufacturing processes and recycled materials to create these labels and even recirculate them countless times to reduce waste, they are still made from plastic.

The SPX label is altogether different. It is manufactured using renewable materials that are Forestry Stewardship Council (FSC) certified, making it more eco-friendly than traditional plastic labels. Plus, it is delivered to manufacturers and retailers in packaging made from 100% recycled materials, which further reduces its carbon footprint.

‘The SPX label can help retailers to get ahead of coming regulations, initiatives and sustainability targets,’ said Katarzyna Breczko, regional marketing director for EMEA at Sensormatic Solutions. ‘In the European Union, for example, we already have a variety of sustainability initiatives in place, and more are likely to be on the way. As a result, retailers know they need to take action today to remain profitable tomorrow, and the SPX label offers them a way to take proactive steps while protecting their merchandise – and their profits.’

“‘The SPX label is a revolutionary opportunity for retailers worldwide,’ Santos added. ‘It not only offers them the chance to be pioneers in environmentally friendly retail, it also gives them a way to improve their sustainability metrics without sacrificing the shrink-reduction performance of their current labels. Plus, it signals to consumers that the retailer is serious about creating a more sustainable future.’

The statistics referenced above show that global consumers aren’t just interested in retailers who practice sustainability. The number of shoppers who take sustainability into account when considering retail purchases is growing in almost every major market.

Retailers who do take the lead, Santos stressed, will have a crucial advantage in the years to come.

In fact, the number of consumers in Latin America who see retailers as key players in sustainability has risen in recent years, especially in markets such as Brazil, Peru, and across Central America. And while consumers are increasingly expecting retailers to adopt sustainable practices, they are also quick to abandon those who don’t. Forty-four percent of LATAM consumers said they had stopped buying products due to their impact on the environment, and half of consumers said they expect brands to take steps to offset their environmental impact.

But evolving consumer attitudes towards the environment aren't the only factors that make now the optimum time for retailers to switch to more sustainable tagging solutions like SPX. As in the EU, a growing number of Asian nations are introducing policies which require organisations to report and reduce the amount of waste they produce.

‘Many Asia-Pacific Economic Cooperation (APEC) member countries are working to reduce waste and its impact on the environment,’ said Sally Wong, head of retail marketing for APAC at Sensormatic Solutions. 'Extended Producer Responsibility (EPR) policies are a good example. EPR makes manufacturers responsible for their products from the factory all the way to the waste stage of that product’s lifecycle. While not every country in Asia is implementing EPR policies, a growing number are, and more may follow. That means organisations that act now to reduce their waste will have to spend less time and money to become compliant if – or when – EPR regulations take effect.’

Santos, meanwhile, noted that there is yet another reason for retailers, manufacturers, and others to consider investing in sustainability initiatives sooner rather than later: time.

‘For major retailers with large footprints and lengthy supply chains, change rarely happens overnight,’ he said. ‘Switching from traditional labels to solutions like SPX across the retail company takes time, even with a team of dedicated experts on hand to help you make the switch. That’s why retailers need to act now if they’re going to demonstrate their commitment to sustainability and continue to capture the growing market share of eco-conscious consumers.’

If you’re ready to improve your environmental impact and showcase your commitment to sustainability – all while protecting your merchandise and your profits – contact the team at Sensormatic Solutions today.