Despite enjoying a high level of recognition and positive perception, fair trade is struggling in terms of sales. Consumer profiles and barriers to purchase provide some initial explanations.
Enabel’s Trade for Development Center proposes a number of courses of action to increase consumer awareness of fair trade.
On March 25, 75 agents from the Walloon Public Service participated in a Sustainable Development Lunch devoted entirely to fair trade.
Following an introduction to the principles of this type of trade by the “Communes du commerce équitable” (Fair Trade Municipalities) campaign, and prior to a presentation of the Fair Producer Label, which promotes local supply chains, Enabel’s Trade for Development Center presented an overview of the sector in Belgium.
The TDC presented an overview of fair trade in Belgium during a Sustainable Development Lunch organized by the SPW.
In our country, the situation of fair trade is mixed. It enjoys strong recognition and a positive perception. Three figures among many others attest to this:
- 85% of Belgians have heard of fair trade.
- 70% of Belgians believe it is important to be able to buy fair trade products.
- When they do buy them, consumers are satisfied with fair trade products, giving them a rating of 7.4/10.[i]
Furthermore, when people living in Belgium are asked what they understand by responsible consumption, “buying fair trade products” ranks among the top 10 responses, far behind environmentally friendly practices such as recycling, reusing, repairing, buying local products from short supply chains, but ahead of limiting the purchase of new products and choosing renewable energy sources.
Q : What does responsible consumption mean to you? You can give a minimum of 1 and a maximum of 3 answers. Source: Opinion survey on responsible consumption conducted by Incidence in 2023 for the Trade for Development Center of Enabel.
However, the average amount spent per Belgian on fair trade products remains fairly low: 42€ per person in 2023. This represents an increase in value compared to the previous year, but when inflation is taken into account, it represents a decrease in volume.
+4.9% for products from the South, but inflation of 12.7% => Decline in volume. Increase in products from the North due to a change in the method used to estimate sales of “Fair Price for Producers” products.
Excluding FPP products, there was an increase of 0.49%. => Decline in volume
A typology of consumers
The consumer profile defined in the 2024 Fair Trade Barometer provides an initial explanation for the gap between the positive image of fair trade and the relatively low consumption of fair trade products.
A glance at the diagram below shows that the group of “rejectors” is almost as large as that of “enthusiasts.” The first group consists of people who do not have a clear idea of what fair trade is and do not see why they should pay more for a product. The second group is, of course, those who consume the most fair trade products, would like to see more of them in stores, but want guarantees about the environmental impact of these products.
Between the two, the “neutrals” and “skeptics” together represent 64% of consumers. The “neutrals” are very familiar with fair trade, but that does not mean they buy fair trade products regularly; they are willing to pay slightly more, but do not feel that they are contributing to workers’/producers’ rights by buying fair trade. The “skeptics,” on the other hand, are not particularly convinced of the benefits of fair trade and do not pay particular attention to whether or not they buy fair trade products.
Although widely shared, the positive image of fair trade is therefore based on very thin and fragile foundations.
Working on actual prices and how they are perceived
This raises the question of how to promote fair trade among consumers so that they pay more attention to it.
This is particularly important given that purchasing power and the cost of living are, along with health, the main concerns of Belgians in 2024. And even though many say they are willing to pay more for fair trade products, the perception of a higher price remains the main barrier to purchase.
Working on actual prices and consumer perceptions is therefore a key challenge. In this regard, the arrival of large retailers in recent years has already made fair trade products more accessible. By offering alternatives under their own brands, these players have managed to align prices at attractive levels while offering Fairtrade-certified products. It seems essential to communicate this price positioning by conducting and sharing objective comparisons of consumer products.
It is also necessary to communicate the quality/price ratio. Comparing a branded fair trade product with a low-cost “white label” product does not make much sense.
Several studies by Fairtrade International have shown that, for a similar quality/price ratio, there are now fair trade products available at more attractive prices than non-fair trade products.
Finally, it should be remembered that a fair trade product is not more expensive if the hidden costs associated with externalities are taken into account. A non-fair trade product would often have to be sold at a higher price if decent wages and environmentally friendly production methods were taken into account.
Diversify the offering
Having a wider range and better availability of fair trade products are two factors that would encourage consumers to buy fair trade products (more often). In 2022, the Fair Trade Barometer showed that consumers could only name an average of five different fair trade products.[
Having a wider range and better availability of fair trade products are two factors that would encourage consumers to buy fair trade products (more often). In 2022, the Fair Trade Barometer showed that consumers could only name an average of five different fair trade products.[ii]
The TDC will continue to highlight the diversity of fair trade products, companies, and distribution networks.
This would encourage people to buy fair trade products (more often). Source: Fair Trade Barometer 2024.
Attracting new generations
On December 3, 2024, during a webinar organized by the Trade for Development Center, Nicolas Lambert, lecturer in marketing and communication at UClouvain, highlighted a point that had already emerged in the 2022 fair trade barometer. “What worries me is that young people’s knowledge is deteriorating and they are becoming increasingly critical of fair trade.” For example, 16-34 year olds are less familiar with the main characteristics of fair trade than older age groups.
“If fair trade wants to move forward, it is important to find the right words to attract young people. If brands or companies position themselves solely on the fair trade aspect, they risk ending up in a ‘niche’,” he added.
Raising awareness among young people in schools is one of the main initiatives highlighted by respondents as a way of promoting fair trade (see diagram below).
Initiatives that could raise consumer awareness. Source: 2024 Fair Trade Barometer
The TDC therefore decided to create a play that will be performed in schools and cultural centers. A play that depicts realistic situations and features characters with whom young people can identify is a good way to raise their awareness of the impact of our chocolate consumption on human rights and the environment.
Using local products as a gateway
Apart from milk, the products identified as fair trade by Belgians are always products from southern countries. In opinion polls, the products mentioned as being the best known are by far coffee (cited by 59% of respondents) and chocolate/cocoa (54%), followed by bananas (36%)[iii]. At the same time, Belgians attach significantly more importance to local products[iv], and 75% believe that fair trade products should not be limited to products from developing countries.
Local fair trade products can therefore be a gateway to fair trade, by demonstrating the complementary nature of product ranges. The visibility of a “Fair Producer Price” label dedicated to local products also needs to be strengthened.
Q: Please rank the five types of products according to how important they are to you.
Source : Fair Trade Barometer
In conclusion
Although fair trade enjoys widespread recognition and positive perceptions, these are not sufficiently reflected in purchasing behavior. Improving the situation requires addressing a number of challenges, including working on real prices and perceptions of prices, diversifying the product range, raising awareness among younger generations, and using local products as a gateway to greater consumption of fair trade products.
In short, fair trade has enormous potential for growth in Belgium. To realize this potential, communication efforts must be combined with product innovation, especially for young people, and the universal (rather than just North-South) dimension of fair trade must be highlighted.
Samuel Poos, Project manager of the Enabel’s Trade for Development Centre
[i] Source of the numbers : Baromètre 2024 du commerce équitable
[ii] 2022 Fair trade barometer.
[iii] Baromètre 2024 du commerce équitable
[iv] Respondents to the 2024 Fair Trade Barometer were asked to rank the following five types of products according to how important they consider them to be: organic, ethical, fair trade, sustainable, and environmentally friendly.
