Growing demand for sustainable products and shifting consumer preferences are presenting a lucrative opportunity for B.C. companies.
One of these businesses is 49 Below Ice Cream, a small craft ice cream shop in Victoria that employs various sustainable practices.
Started nine years ago as an ice cream subscription company, the business slowly expanded to wholesale and opened their Oak Bay storefront in 2022.
“We’ve always tried our best to use local ingredients,” said owner Daniel Edler. “We are supported by the community, and we want to support the community back.”
Sourcing from local companies such as 2% Jazz Coffee for their coffee ice cream doesn’t only support small businesses, but Edler says these relationships provide valuable business insights that would not be possible dealing with bigger companies.
Upcycling fruits and vegetables that are slightly damaged or have small blemishes is another sustainable practice used by the shop to reduce waste.
“People are critical when it comes to those kinds of things, so they won’t buy them,” said Edler. “So instead of going to the landfill, we can divert it and make a delicious product out of it.”
From reusing materials during the shop’s interior remodelling, to recycling and using metal spoons, 49 Below’s eco-friendly practices and products set them apart from other ice cream shops.
As a consumer, Edler has noticed prices increase across the board, but says he would rather buy higher-quality goods less often, than lesser-quality goods more often.
“I’ve definitely noticed them go up, but we would rather support a small business and buy things less often, but of higher quality,” he explained. “I feel like our product is definitely higher end; we make it here in-house and people are willing to pay the prices.”
However, the business has remained cautious about increasing its prices. A year ago, 49 Below Ice Cream changed its pint size to 500 millilitres from 473 millilitres about a year ago. The change means the shop doesn’t have to charge GST, so consumers pay the same sticker price for more product.
“We get to keep that portion now, and when we sell it wholesale, the wholesaler gets to keep that portion” he said. “So in the end, the consumer gets more product. We make a little bit more money and we didn’t have to increase our costs.”
Sustainable products have grown in popularity in the last few years.
Data hints at a bright future for this sector, as two-thirds or 66 per cent of Canadians are willing to pay more for locally sourced products.
Fifty per cent are also willing to pay extra for eco-friendly products or services, according to an October 21 survey of 1,500 consumers by the Business Development Bank of Canada (BDC).
The study suggests businesses could use this strategy to differentiate themselves and attract more customers, as more than a third of consumers would be willing to pay at least 10 per cent more for sustainable clothing, groceries and other services.
Most notably, 71 per cent of Gen-Z respondents (Zoomers) born between 1997 and 2012 said they are more likely to pay extra compared to just 54 per cent of those from other generations.
One of the sectors where Zoomers are willing to spend the most is environmentally friendly restaurants. The BDC survey shows that 64 per cent of them would do so.
Considering that all Zoomers will be adults by 2030, BDC expects the eco-friendly product market will continue to expand and could be lucrative for businesses that commit to green practices.
At the same time, higher costs of living have made Canadian consumers more frugal, with households increasingly forced to compare prices and choose the cheaper options due to strong inflation.
In 2023, 44 per cent of consumers generally sought the lowest possible price when buying goods, according to another BDC survey.
Retail sales per capita since 2022 have also declined by five per cent due to tighter budgets, according to Statistics Canada.
The October 21 consumer survey released by the BDC surveyed 1,503 consumers in August using the Angus Reid Institute’s Forum. The margin of error is plus or minus 2.5 per cent, 19 times out of 20.