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Expansion of Ethical Consumption and Certification Labels in Food Sector

2022.3.6

“Ethical consumption,” in which consumers make purchasing decisions while considering solutions to social issues relevant to them, is expanding globally and exerting a significant impact on markets. Against this backdrop, this article focuses on emerging trends in ethical consumption within the food sector, as well as the business opportunities associated with obtaining certification labels.

Table of Contents

1 Incidents in the Food Industry and the Growing Influence of Consumers
2 What is “ethical consumption”?
3 Current State of Ethical Consumption in Japan
4 Characteristics of Ethical Consumption in Japan
5 Building Product Trust
6 Challenges and Concerns in Obtaining Certification Labels

Incidents in the Food Industry and the Growing Influence of Consumers

Concerns over the transparency of food supply chains are spreading among consumers worldwide. For example, in 2013, it was revealed that beef products adulterated with horse meat had been widely distributed across Europe, causing significant public concern (*1). In Japan, a series of incidents also came to light in 2007, including the use of expired ingredients and mislabeling by major confectionery manufacturers and long-established traditional restaurants. In 2008, cases of food poisoning linked to frozen dumplings imported from China were widely reported in the media (*2).

These incidents have substantially increased consumer skepticism regarding the transparency of food supply chains, and such misconduct has come to represent a significant management risk for companies.

At the same time, growing consumer demand for supply chain transparency extends beyond explicitly defined regulatory and compliance risks, and can also represent a source of competitive advantage for companies. One key factor underpinning this shift is the expansion of ethical consumption.

What is “ethical consumption”?

“Ethical consumption,” in which consumers make purchasing decisions based on sustainability considerations, is particularly well developed in terms of institutions and markets in Western countries (*3), and the expansion of its market size has had a significant impact on overall market dynamics.

The term “ethical consumption” has been used in the United Kingdom since the 1980s. At that time, boycotts against companies associated with apartheid in South Africa, chlorofluorocarbons (CFCs), and animal testing were frequently carried out. This trend, along with the launch of the influential magazine Ethical Consumer in 1989 (*4), is said to have contributed to the widespread use of the term to describe consumer behavior as a whole.

Ethical consumption originated from consumer and social movements and has undergone institutionalization and marketization since the 1980s. In recent years, interest and support for ethical consumption have expanded significantly. One contributing factor is the widespread adoption of smartphones and social media since the 2010s, which has made it easier for consumers and NGOs to collect and disseminate information. However, this expansion is also supported by multiple factors, including the growing severity of environmental issues and the increasing emphasis on corporate social responsibility (*5) (*6).

As the consumer base has expanded, spending on sustainable products that consider environmental and human rights issues has increased in the UK. In fact, the ethical consumption market in the UK has continued to grow steadily since the late 1990s and has expanded approximately tenfold over the past two decades.

In particular, ethical consumption in the food and beverage sector grew by approximately 7.6% from 2021 to 2022. The market for ethical food categories, including fair trade certified products, also showed year-on-year growth, with the fair trade market increasing by approximately 16% (*7). Furthermore, previous studies indicate that sales of organic certified food increased by approximately 13% from 2019 to 2020 (*8), confirming the continued expansion of ethical consumption in this sector.

These findings suggest that ethical consumption in the food and beverage sector is not a short-term phenomenon but rather reflects sustained consumer values. Overall, the ethical consumption market in the UK has continued to expand over the long term and is becoming increasingly embedded as a component of consumer behavior.

Current State of Ethical Consumption in Japan

Ethical consumption is also expanding in Japan, following trends seen in the UK. According to a survey conducted by the Ministry of Agriculture, Forestry and Fisheries involving approximately 18,000 people aged 20–60, 29.9% of respondents expressed a willingness to purchase food that considers environmental and social sustainability (“would like to purchase regularly” 9.4%, “would like to purchase occasionally” 20.5%) (*9).

Additionally, a survey by Dentsu targeting 1,000 men and women nationwide found that approximately 30% of consumers reported increased awareness of ethical consumption due to COVID-19. Food was identified as the category with both the highest purchase experience and the highest expectations regarding ethical initiatives (*10).

These results suggest that consumers are increasingly focusing on products and services with social significance, and companies that address environmental and climate issues are more likely to be selected. Accordingly, businesses are increasingly required to respond to these changing consumer preferences.

In response, Japan’s Consumer Affairs Agency established a research group on ethical consumption in 2015 (*11). This initiative aimed to promote ethical consumer behavior and strengthen corporate efforts, representing one of the early policy-level approaches to ethical consumption.

Characteristics of Ethical Consumption in Japan

While ethical consumption originated in the UK and is expanding in Japan, Japanese consumers place particular importance on price, product transparency, and social perception when purchasing ethical products.

According to a global survey by Nielsen covering 30,000 people in 60 countries, the proportion of consumers willing to pay a premium for sustainable brands increased from 50% in 2013 to 66% in 2015, with 73% among millennials (*12).

A 2024 survey by PwC covering approximately 20,000 respondents across 31 countries found that over 80% were willing to pay more for sustainable products, with an acceptable premium of about 9.7% (*13).

Meanwhile, a domestic survey in Japan found that the main conditions for purchasing sustainable products were:

“If the price is the same” (35.3%)

“If the benefits are understood” (34.5%)

“If it relates to issues of personal interest” (31.0%) (*13)

This indicates that, compared to global markets, Japanese consumers place greater importance on price appropriateness and clear justification when making purchasing decisions.

However, among younger consumers in Japan, acceptance of premium pricing for ethical products is increasing. A survey targeting individuals aged 18–29 showed that 55% would choose environmentally friendly daily goods even if more expensive, and 38% would choose biodegradable or natural materials (*14).

In addition, social context influences purchasing behavior. A nationwide vending machine experiment found that environmentally certified coffee sales increased significantly (+7%) in social environments such as office buildings, while no such effect was observed in non-social environments like shopping malls (*15). This suggests that awareness of social evaluation may influence environmentally conscious purchasing behavior.

Building Product Trust

As the market for ethical consumption continues to expand, companies are increasingly required to avoid practices such as “greenwashing” and “SDGs washing,” which have come under growing scrutiny in recent years, and to ensure transparency in their products for consumers.

Greenwashing is a term combining “green,” associated with environmental friendliness, and “whitewashing,” meaning to conceal or misrepresent facts. It refers to practices in which companies present their activities as environmentally responsible without substantive backing (*16). In response to the rise of greenwashing and SDGs washing, there is a growing tendency—particularly in Western countries—to demand greater transparency and accountability in order to prevent misleading consumers. These developments underscore the importance of evidence-based sustainability disclosures and can be regarded as a prerequisite for securing trust in future markets (*17).

(*Details on greenwashing have also been covered in our previous article. )

One effective way to ensure product transparency while avoiding greenwashing and SDGs washing is to obtain third-party certification labels. Certification labels generally indicate that products have been produced, processed, and distributed in accordance with established guidelines and have been verified by independent organizations.

Examples of widely adopted certification labels in the food sector include:

Rainforest Alliance Certification: A certification system that evaluates raw materials sourced from more sustainable certified farms, with a focus on forests, climate, human rights, and livelihoods (*18).

International Fairtrade Certification: A system that assesses whether international fair trade standards—such as ensuring fair prices for producers and addressing human rights and environmental considerations—are met at each stage of the supply chain (*19).

FSC Certification: A certification system that evaluates products made from responsibly managed forests or approved recycled materials (*20).

MSC Certification: A certification system that evaluates seafood products sourced from sustainable fisheries that consider marine resources and environmental impact (*21).

RSPO Certification: A certification system that evaluates palm oil produced with consideration for tropical forest conservation, biodiversity, and the livelihoods of producers (*22).
JGAP Certification: A certification system that comprehensively evaluates farm management practices in Japan, covering food safety, labor safety, environmental conservation, and human rights and welfare (*23).

Alongside the expansion of ethical consumption, the food industry has seen a growing trend toward increasing the trade of certified products. For example, the Seven & i Group, through its environmental declaration “GREEN CHALLENGE” (*24), has committed to ensuring that 50% of its products use sustainably certified materials by 2030 and 100% by 2050.

Furthermore, at the Tokyo 2020 Olympic and Paralympic Games, GAP certification and similar standards were adopted as procurement criteria for food ingredients. This initiative significantly increased awareness of GAP certification in Japan and contributed to its broader adoption nationwide (*25).

These developments indicate that, in the food industry, not only consumer demand but also external factors—such as procurement standards for large-scale events and policy-driven awareness initiatives—are driving the growing importance of certification. As a result, the adoption of certification systems is expected to continue accelerating.

Challenges and Concerns in Obtaining Certification Labels

In this article, we have examined changes in consumer preferences in the food and agriculture industry from the perspective of ethical consumption. For companies, obtaining third-party certification is expected to contribute to the expansion of product distribution and market reach. In light of this trend, many companies may be considering acquiring certification labels. However, obtaining such certifications requires considerable time and cost, and many companies may face challenges in determining which certification schemes to pursue.

For example, taking the JGAP certification—promoted in connection with the Tokyo Olympic and Paralympic Games—as a case in point, obtaining certification requires meeting approximately 120 criteria related to food safety assurance, environmental conservation, and worker safety (*23). Each criterion is subject to third-party verification, including document reviews and on-site inspections, and the application process typically costs around ¥80,000 to ¥100,000. In addition, it may take several years to complete all required checks and obtain certification (*24), making adoption challenging from both cost and time perspectives.

Moreover, there are numerous types of certification labels, each with different evaluation criteria and areas of focus. As a result, companies must carefully select the certification that best aligns with their business, which can make it difficult for some to proceed with certification.

As a first step toward obtaining certification, it is essential for companies to accurately identify their own opportunities and risks. This requires comparative analysis of a wide range of ESG data—not only within the company but also across other companies and industries—from a long-term perspective.

At the same time, ESG evaluation frameworks are continuously evolving. Therefore, it is not easy for many companies to comprehensively and systematically keep track of global ESG trends and the associated business risks and opportunities.

Furthermore, conducting in-depth analysis—by linking identified trends with company-specific operational data and deriving quantitative insights to support certification decisions—requires substantial data processing and resources. Even when focusing on a single factor such as environmental conservation, the presence of numerous indicators and calculation methodologies results in a highly complex analytical structure.

To efficiently carry out both broad and in-depth analysis, it is more effective for specialized expert teams with consolidated know-how to take the lead, rather than having each company independently conduct such efforts. This approach reduces redundant processes and enables faster execution of the same analytical tasks, resulting in significantly greater efficiency and effectiveness.

While this article has introduced one example of ESG trends, Quon Crop provides services such as the “ESG/SDGs Management 360° Assessment & Improvement Support,” leveraging a team of experts in ESG data analysis—primarily from leading global strategy consulting firms—along with proprietary analytical methodologies, including AI. These services support companies in identifying and optimizing the necessary level of ESG initiatives required to be “chosen” by ethical consumers.

These services are not only applicable to companies that already have internal ESG teams and are seeking to improve analytical efficiency, but also to relatively smaller companies that do not yet have such teams but recognize the need to shift toward ESG management.

Companies interested in accelerating ESG management through scientific and efficient analytical approaches are encouraged to contact “cuoncrop”.

cuoncrop ESG Global Trend Research Division

References

（*1） https://ec.europa.eu/food/safety/agri-food-fraud/eu-coordinated-actions/coordinated-control-plans/horse-meat-2013-14_en

（*2） https://www.reishokukyo.or.jp/wp-content/uploads/pdf/091202_public.pdf

(*3) https://journals.sagepub.com/doi/10.1177/14695405241290920

（*4） https://www.ethicalconsumer.org

（*5) https://www.researchgate.net/publication/232846219_Transforming_citizens_Green_politics_and_ethical_consumption_on_lifestyle_television

(*6) https://macau.unikiel.de/servlets/MCRFileNodeServlet/macau_derivate_00002415/Diss_Nils%20Hoffmann_Vollversion.pdf

(*7) https://www.ethicalconsumer.org/sites/default/files/inline-files/EC_Market_Report_2021.pdf

(*8) https://www.ethicalconsumer.org/sites/default/files/media-file/2023-12/Ethical-Markets-Report-2023-web.pdf?utm_source=chatgpt.com

(*9) https://www.maff.go.jp/j/zyukyu/jki/j_doutai/attach/pdf/kokusan_genzai_top-17.pdf