Demand Switching marketing for a post-carbon economy

Marketing has a bug. For decades, it’s been hardwired to generate demand for more – more products, more consumption, more waste. The bigger the basket size, the better the KPIs.

But in an era where climate breakdown and pushing Earth past its limits is shifting from niche concern to the defining business challenge of our time, this model is broken. We don’t need to generate more demand; we need to switch it.

Welcome to Demand Switching, the strategic shift that marketing needs if it’s going to stay relevant in the 21st century.

What is Demand Switching?

Demand Switching is about redirecting consumer demand away from high-carbon, high-impact products and services towards cleaner, greener, more nature-friendly alternatives. In some cases, it’s about encouraging consumers to buy differently; in others, it’s about encouraging them not to buy a thing at all.

This isn’t about guilt-tripping consumers or shaming businesses – it’s about harnessing the power of marketing to assist in the transition to a post-carbon economy. The brands that figure out how to make sustainable choices aspirational, seamless, and commercially viable will be the ones that thrive in the next decade.

So how does it work in practice? Here are three compelling examples of Demand Switching in action.

IKEA’s Circular Transformation

IKEA has spent decades mastering the art of fast furniture. But it has also recognised that a business model built on infinite consumption in a world of finite resources isn’t sustainable. So, it’s switching.

The company is investing heavily in circularity, launching furniture rental schemes, buy-back programmes and second-hand marketplaces. Its commitment to making furniture last longer – rather than pushing customers to replace it – signals a fundamental shift in retail logic. It’s a move that’s both planet-friendly and commercially smart. Customers who engage with IKEA’s circular offerings are more likely to stay within its ecosystem, increasing lifetime value.

Vitality & Parkrun – Socialising Demand

Demand Switching isn’t just about shifting purchases - it’s also about shifting behaviours. Vitality, the health and life insurer, has done exactly that by embedding socialised sustainability into its business model.

Rather than just selling insurance, Vitality actively incentivises healthier lifestyles. Its customers can lower their premiums by making positive and planet-friendly lifestyle choices – walking more, exercising regularly, and reducing health risks. The company has gone even further by sponsoring Parkrun, the free weekly community running event, which encourages thousands to take up regular exercise without any need for expensive gym memberships or ramping-up sports kit manufacturing.

This is a perfect example of Demand Switching in action – shifting consumer aspiration from passive consumption (buying things to feel good) to active participation (gaining well-being through experiences). It builds loyalty, improves customer retention, and ultimately lowers insurance claims, creating a win-win-win for business, society and nature.

First Choice’s Flight-Free Travel

First Choice, the travel brand from TUI, has integrated flight-free options into its holiday packages, making it easier for customers to swap high-emission air travel for lower-impact alternatives like train journeys.

This is a powerful example of how a brand can shift consumer behaviour by designing the default option differently. By making flight-free low-carbon travel easier and more aspirational, First Choice is proving that sustainability doesn’t have to come at the cost of customer experience - it can enhance it, because ‘going through is so much more enriching than flying over’.

Finding More Demand Switching Opportunities

These examples highlight three key strategies for Demand Switching:

1. Substitution – Replacing harmful products with better alternatives (e.g. EVs instead of petrol cars, plant-based protein instead of meat).
2. Stickiness – Encouraging reuse, repair, and resale rather than constant new purchases (e.g. IKEA’s second-hand schemes).
3. Socialising Demand – Creating experiences and communities that don’t rely on consumption (e.g., Parkrun’s free community runs, backed by Vitality).

But this is just the beginning. There are countless other ways for brands to embed Demand Switching into their strategy:

• Shrinking: Concentrated laundry detergent sheets instead of bulky plastic bottles.
• Sharing: Power tool rental services instead of individual ownership.
• Default Shifting: Making the sustainable choice the easiest, most attractive option (e.g. Amazon delivery day).

The big question is: What’s your brand’s Demand Switching opportunity?

The Future of Marketing is Demand Switching

We’re on the cusp of the biggest economic transition in history – the shift to a post-carbon economy. Trillions are being invested in clean energy, circular business models and regenerative food systems. The brands that align themselves with this future will be the ones that thrive.

Marketing can no longer just be about selling more stuff. It needs to be about switching demand - helping consumers make choices that are better for them, better for society and better for the planet.

This is the moment for marketers to step up, not as purveyors of consumption but as architects of a new kind of aspiration. Demand Switching isn’t just good ethics - it’s the future of brand growth. The only question is: Are you ready to switch?

Leo Rayman is Founder & CEO of EdenLab, the green growth and sustainable innovation company.

The opinions expressed here are those of the authors and were submitted in accordance with the IPA terms and conditions regarding the uploading and contribution of content to the IPA newsletters, IPA website, or other IPA media, and should not be interpreted as representing the opinion of the IPA.