Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. 66% of survey respondents are willing to pay more for sustainable goods, up from 55% in 2014, and 50% in 2013 Sales of consumer goods from brands with a demonstrated commitment to sustainability have grown more than 4% globally, while those without grew less than 1%. Are you interested in testing our business solutions? Original survey question: How much of a premium are you willing to pay for green consumption (i.e. Nearly three . Are consumers really willing to pay more for sustainable products? While this statistic is telling on its own, what's more telling is that 81% of those interviewed said that they planned to buy more sustainable products over the next five years.. And environmental consciousness isn't a new trend among consumers. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. According to Chicago-based Nielsen's 2019 "Protein Proliferation" report, 19% of consumers surveyed said that they intended to increase their consumption of meat and seafood more than any other protein group. Climate-friendly defines products that reduce damage specifically to the climate. Consumers are voting with their dollars against unsustainable brands. As a Premium user you get access to background information and details about the release of this statistic. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. To a certain degree, products that need to have a higher degree of efficacy (such as laundry care and sanitary napkins) were more likely to have a lower share of sustainability-marketed products, perhaps because consumers are concerned about performance trade-offs. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. I dream of a world in which clothing is more expensive across the board, but there are no more sweatshops anywhere, and no more slash-and-burn. Companies must act now to avoid obsolescence in the future. Both are good tools for building trust. Create a free account and access your personalized content collection with our latest publications and analyses. CPGs that are not making the pivot will lose Kraft Heinz, whose investors have encouraged a cost-cutting approach that is backfiring, is a case in point. Businesses must adapt to the times as consumers are voting with their wallets and Millennials, in particular, are demanding that companies put their money where their mouth is. That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". But in a increasingly interconnected world, it's starting to be normal to think critically about where things come from and whether the company you're supporting is a responsible corporate citizen. Academic research has consistently identified this gap between purchase intentions and behaviours. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. You need at least a Starter Account to use this feature. The survey was fielded from February 15 to February 16, 2021 among a demographically balanced nationally representative sample of 1,017 U.S. adults 18 years of age and older. Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. For instance, while the overall shampoo category saw declines of 3.4% over a year long period ending April 2018, natural shampoos, which own 11.2% of the value share, are steadily growing at 2.2%. Get the full study Join Your Peers While the survey respondents were answering questions . In fact, the majority (73%) of global consumers say they would definitely or probably change their consumption behavior to reduce their impact on the environment. The survey is conducted among 48 percent of female and 52 percent male respondents. Chart. Millennials already played a significant . CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. Michele Koch Among the 66% of global respondents willing to pay more, over 50% of them are influenced by key sustainability factors, such as a product being made from fresh, natural and/or organic ingredients (69%), a company being environmentally friendly (58%), and company being known for its commitment to social value (56%); sales and coupons didn't even The shift in consumer buying, where more consumers are willing to pay more for environmentally conscious products, underscores the need for manufacturing companies to enhance their commitment to responsible business practices using technologies that support more sustainable product design and development. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. Surface Studio vs iMac - Which Should You Pick? This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. The views expressed in this article are those of the author alone and not the World Economic Forum. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. They expect a two-way, open dialogue with companies and their brands. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. Businesses that under-appreciate the need for CSR do so at their peril. But brands can nudge consumers towards more eco-friendly products. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Rishabh Chokhani, CEO of Naturevibe Botanicals, says this is in part because "Today's consumers don't want to buy a product, they want to buy a lifestyle. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. In its2015 Nielsen Global Corporate Sustainability Report, Nielson found that 66% of global consumers say they are willing to pay more for sustainable brands up 55% from 2014. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. The study, which was designed to measure consumer attitudes towards sustainability, importance of sustainability and willingness-to-pay for sustainability, also focused on 17 different product/service categories of the following sectors: Consumer Goods & Retail; Automotive; Travel & Tourism; Energy/Utilities; Financial Services; and Construction/Home. On Earth Day 2020, the organisation Climate Neutral an independent non-profit organisation working to decrease global carbon emissions confirmed 103 brands had completed its certification process in 2020 and 50 other brands were still in the process. Notably, those two companies are doing so despite the strident objections of investors who criticized Indra Nooyi and Paul Polman, the former CEOs of PepsiCo and Unilever, respectively, for moving away from their traditional brands. As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . The study also found a large degree of mistrust about companies environmental claims. Weve been on this journey for a while, but the clock is ticking and failure to think through the implications could have long-term consequences for traditional firms., Across industries and countries, sustainability is a significant purchase criterion -- though price and quality continue to dominate. The future for CPG, and increasingly for other categories such as apparel, is sustainable. According to the2015 Cone Communications Millennial CSR Study, More than nine-in-10 Millennials would switch brands to one associated with a cause (91% vs. 85% U.S. average), and two-thirds use social media to engage around CSR (66% vs. 53% U.S. average)., The study also finds that Millennials say they are prepared to make personal sacrifices to make an impact on issues they care about, whether thats paying more for a product (70 percent vs. 66 percent US average), sharing products rather than buying (66 percent vs. 56 percent) or taking a pay cut to work for a responsible company (62 percent vs. 56 percent).. This may give competitors of all sizes, the opportunity to build trust with the predominantly young, socially- conscious consumer looking for products that align with their values.. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. Statista. Rudominers lifelong passion is using communication to foster social change. COLORADO SPRINGS, US (ICIS)-Consumers are willing to pay more for sustainable products that can be recycled or reused, according to a new survey of 6,000 people worldwide by consultancy Accenture. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. Are consumers willing to pay more for these? In terms of how much, Gen. Z (32 percent premium) and Millennials (31 percent premium) are willing to pay more than twice as big a premium as Baby Boomers (14 percent premium) and a third more relative to Gen. X (21 percent premium). Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. NYU Sterns Center for Sustainable Business just completed extensive research into U.S. consumers actual purchasing of consumer packaged goods (CPG), using data contributed by IRI, and found that 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. People want to feel that whatever they are buying aligns with their personal values. I don't dream of a world full of cheap lip gloss that was tested on animals; I dream of one in which that kind of beauty product is illegal everywhere, period. Some of the necessary transformation can be accomplished by reinventing legacy products, as Unilever has shown with its sustainable living brands, now delivering 70% of its turnover growth. This button displays the currently selected search type. An international study of 20,000 customers by grocery brand giant Unilever identified one in three (33%) people were choosing to buy from brands they believe are doing environmental good. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. Personal values indeed. to incorporate the statistic into your presentation at any time. For example, one study found Spanish consumers were willing to pay 22-37 per cent more for green products, but Japanese consumers were only willing to pay 8 per cent to 22 per cent more for . Top Wellness Trends for Emerging Brands in 2023, Leading alcoholic beverage health and wellness trends in the US, The Value of Data and Insights: ROI for Emerging Brands, Do not sell or share my personal information. Seventh Generation, Sundial Brands, and Pukka Herbs. We also reviewed which categories had the largest share of sustainability-marketed products. GreenPrint We see the impact of similar sentiment around shower gel, a category where naturals own 10.3% of the value share, and the overall category saw sales decline 0.8%. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. Looking at web sites for information on business and manufacturing practices. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. And according to Nielsen, I'm not alone in that. In 2014, less than 30 . lire aussi : For fifteen years, Rudominer has operated on the front lines and behind the scenes of numerous communications campaigns, providing strategic counsel to public officials, corporations, trade associations, and non-profits. According to a June 2014 Nielsen study , 55% of global online consumers "are willing to pay more for products and services from companies that are committed to positive social and environmental impact." In fact, as early as 1992, the European Commission established the EU Ecolabel , a Europe-wide voluntary environmental labeling scheme that . Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. ATLANTA--(BUSINESS WIRE)--Americans are seeking out and are willing to pay a premium for environmentally friendly products, according to a new study from GreenPrint, an environmental technology company. 9. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Studies show that people are geared towards using sustainable products more than others. Profit from the additional features of your individual account. "Despite the fact that Millennials are coming of age in one of the most difficult economic climates in the past 100 years, they continue to be most willing to pay extra for sustainable offerings--almost three-out-of-four respondents," says Nielsen. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. Green consumption ( i.e 2018 of products marketed as sustainable, finds the wisdom! 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