Businesses need to be empathetic, up front and honest with consumers to prevent a slide in ethical consumption as loyalty becomes critical, according to food business analyst Just-Food.

Consumers are seeking simplicity in product design as “green buying” continues to rise, despite a smaller target market, said Chris Brook-Carter of Just-food.com in an address to the International Food & Drink exhibition in London this week.

A new report from the food specialist, entitled Issues, trends and challenges facing the food and drink industry, reveals that spending on green products in the US is up 4.2 per cent, with a similar rise in the UK since 2006, but this is down to a small customer base staying loyal to their ethics.

Brook-Carter said: “We are seeing wavering customers moving away from ethical products. Shoppers who already spend with ethics in mind continue to buy but less frequently, while those who have been dipping in and out are trading down.

“As there has been a shift from food miles to looking at our carbon footprints in the last few years, we should be urging companies to put carbon counts on packaging so consumers can measure their footprint as they would their calories.”

He urged businesses to monitor consumer behaviour intensely and show empathy as customers look to save money while loyalty becomes key.

“The worst thing you can do is carry on as if nothing has happened; empathy for their situation will resonate with longer term loyal customers more than those who continue as if it is business as usual,” said Brook-Carter.

The diet-related food market remains a huge area of growth, with a projected market of $76 billion (£54.2bn) in Europe and $52.5bn in the US by 2014.

The report also suggests that there has been a shift towards natural products in the recession, with Sainsbury’s Basics kiwifruit proving popular, not least because of its clear packaging.

“Simplicity is very important - we need to be up front with customers about portion control and also putting the health benefits on the front of the pack,” said Brook-Carter.

“This is an unprecedented time of turmoil but ethical consumption remains important - it has to be the right product at the right time and we must continue to innovate,” he concluded.