Carsten Menke, CFA, Head of Next Generation Research at Swiss Wealth Manager, Julius Baer.
In the last year, our view of the world has changed. The Covid-19 crisis turned our lives upside down as country after country moved into lockdown. That which was normal before, was not normal anymore, especially for those who caught the virus.
Think of meeting family and friends, think of a stroll in the city or think of travelling. As we became locked down, we had to slow down. We had more time to think about what is important in life – health and happiness, family and friends. We found time for things that had previously been out of focus when we were living our lives at speed and we were caught up in stresses and strains of our daily routines. We also realised what cosy and comfortable places our homes are and that we do not necessarily need to be out to enjoy ourselves.
Whether or not we consider ourselves conscious consumers can be very subjective. For some, it may actually mean cutting back on consumption. For others, it may simply mean to be much more aware of the consequences their consumption has. In any case, the focus is on the societal and environmental footprints of our lifestyles. The question is not about what we want or what we need, but if we can afford it – not from a financial perspective, but from a societal and environmental point of view. Conscious consumption touches almost all areas of everyday life; our food and our fashion, the way we commute and the way we travel. The question is what impact do we make.
We care much more about food today than we did in the past and its prominence in our lives has undoubtedly risen. Think of the variety of restaurants in our cities, the food bloggers on social media and what we know about items of food. We are aware of the adverse human health effects of processed food, and we care about animal welfare, even if we are not vegetarian or vegan. We are concerned about the environmental footprint of our food, ranging from excessive water usage in fruit and vegetable production, to the greenhouse gas emissions of the livestock industry. But did you know that certain cheeses cause more greenhouse gas emissions than pork or poultry?
Food is a lot about habits. Changing our eating habits is both a question of our willingness and our ability to do so. Willingness relates to individual and social values. Do I want to eat differently? Does society recognise the benefits of locally and organically-produced food? Does it realise the issues related to eating too much meat? Does it care about the environment and the animals? Ability relates to prosperity. Do I have the financial flexibility to spend more money on the more expensive, locally and organically-produced food? Do I want to support my local farmer?
The share of organic food sales in a country provides a good gauge of how conscious the consumers are about what they eat. Organic food covers both the willingness aspect, as these consumers care about how their food is produced, as well as the ability aspect, as they are paying more than for non-organic food. Unsurprisingly, the share of organic food is the highest in prosperous developed countries, reaching up to 10 percent in some. Growth in organic food sales in Germany, Switzerland and the United States has outpaced growth of total food sales by a factor of 10 since the beginning of the century. The crisis provided another big boost to this trend – also in the UAE. Consumers embarked on the trend during the past year, significantly driving up sales of specialised organic food companies. However, organic food is not just a demand-driven story. Statistics show that prices of organic milk and meat are not just higher but also less volatile, thereby providing a higher and more stable income for the producers. Organic food is thus a win-win story for producers and consumers, leaving a lot of room for growth.
Carsten Menke, CFA, Head of Next Generation Research at Swiss Wealth Manager, Julius Baer.
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Conscious consumption: How we eat is how we live
Organic food is a win-win story for producers and consumers, leaving a lot of room for growth
Carsten Menke, CFA, Head of Next Generation Research at Swiss Wealth Manager, Julius Baer.
In the last year, our view of the world has changed. The Covid-19 crisis turned our lives upside down as country after country moved into lockdown. That which was normal before, was not normal anymore, especially for those who caught the virus.
Think of meeting family and friends, think of a stroll in the city or think of travelling. As we became locked down, we had to slow down. We had more time to think about what is important in life – health and happiness, family and friends. We found time for things that had previously been out of focus when we were living our lives at speed and we were caught up in stresses and strains of our daily routines. We also realised what cosy and comfortable places our homes are and that we do not necessarily need to be out to enjoy ourselves.
Whether or not we consider ourselves conscious consumers can be very subjective. For some, it may actually mean cutting back on consumption. For others, it may simply mean to be much more aware of the consequences their consumption has. In any case, the focus is on the societal and environmental footprints of our lifestyles. The question is not about what we want or what we need, but if we can afford it – not from a financial perspective, but from a societal and environmental point of view. Conscious consumption touches almost all areas of everyday life; our food and our fashion, the way we commute and the way we travel. The question is what impact do we make.
We care much more about food today than we did in the past and its prominence in our lives has undoubtedly risen. Think of the variety of restaurants in our cities, the food bloggers on social media and what we know about items of food. We are aware of the adverse human health effects of processed food, and we care about animal welfare, even if we are not vegetarian or vegan. We are concerned about the environmental footprint of our food, ranging from excessive water usage in fruit and vegetable production, to the greenhouse gas emissions of the livestock industry. But did you know that certain cheeses cause more greenhouse gas emissions than pork or poultry?
Food is a lot about habits. Changing our eating habits is both a question of our willingness and our ability to do so. Willingness relates to individual and social values. Do I want to eat differently? Does society recognise the benefits of locally and organically-produced food? Does it realise the issues related to eating too much meat? Does it care about the environment and the animals? Ability relates to prosperity. Do I have the financial flexibility to spend more money on the more expensive, locally and organically-produced food? Do I want to support my local farmer?
The share of organic food sales in a country provides a good gauge of how conscious the consumers are about what they eat. Organic food covers both the willingness aspect, as these consumers care about how their food is produced, as well as the ability aspect, as they are paying more than for non-organic food. Unsurprisingly, the share of organic food is the highest in prosperous developed countries, reaching up to 10 percent in some. Growth in organic food sales in Germany, Switzerland and the United States has outpaced growth of total food sales by a factor of 10 since the beginning of the century. The crisis provided another big boost to this trend – also in the UAE. Consumers embarked on the trend during the past year, significantly driving up sales of specialised organic food companies. However, organic food is not just a demand-driven story. Statistics show that prices of organic milk and meat are not just higher but also less volatile, thereby providing a higher and more stable income for the producers. Organic food is thus a win-win story for producers and consumers, leaving a lot of room for growth.
Carsten Menke, CFA, Head of Next Generation Research at Swiss Wealth Manager, Julius Baer.
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