People want to feel that whatever they are buying aligns with their personal values. Most important,. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. This is especially true for Millennials. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. Consumers' demand for sustainable products is increasing. Simple economies of scale also impact on price. Shoppers once selected grocery products based simply on price or brand, but now attributes such as climate-friendly or eco-friendly are part of the consideration. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Products that had a sustainability claim on-pack accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales, up 29% from 2013. Seventh Generation, Sundial Brands, and Pukka Herbs. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. Are you making an effort to reach these socially conscious young people? Social responsibility is a critical part of proactive reputation management. Sustainability sentiment is particularly consistent across income levels. All Rights Reserved. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. For this group, personal values are more important than personal benefits, such as cost or convenience. As CPG sales spiked . According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. zharris@prosek.com, Internet Explorer presents a security risk. 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 . Saving biodiversity: why our mental and physical health depends on it. 77% of Americans are concerned about the environmental impact of products they buy. I can attest to the fact that sustainability isn't just something I "sorta kinda" consider--it's one of the primary reasons I either buy or don't buy from consumer brands. Businesses must adapt to the times as consumers . 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. A willingness to pay more for "sustainable" products. 5 Ways to Connect Wireless Headphones to TV. Or to remain unmoved by those facing increasingly poor living conditions across the globe. You need a Statista Account for unlimited access. 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. www.simon-kucher.com, Internet Explorer presents a security risk. Defending and preserving our planet is not only the right thing to do, its good business. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. When it comes to purchase behavior, its become abundantly clear that consumers care. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. In 1998, the Council of the European Union passed a directive that setrules for the protection of farmed animals -- a directive updated in 2009 that led tofar more ethical treatment of animals there. Nielsen's 2014 Global Survey on Corporate Social Responsibility, released Tuesday, shows that 55 percent of global online consumers across 60 countries are willing to pay more for products and services from companies that are committed to positive social and environmental impact. Attitudes towards sustainability also vary by industry when measuring its importance as a purchase criterion, from 74 percent in Energy/utilities to 44 percent in Financial services. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. how much more are you willing to pay compared to regular goods) when purchasing the following categories? A survey of 51 retail senior-level . The survey reports that 58% of Europeans consider climate impact . Products with a sustainability claim have continued to drive growth amid the pandemic, according to a new report from IRI and the NYU Stern Center for Sustainable Business. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. This sum will continue to grow exponentially as more Millennials reach peak buying power. Are you interested in testing our business solutions? Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. In a study of 30,000 consumers across 60 countries, Nielsen found that nearly 2/3 of consumers globally are willing to pay more for sustainable goods and that is on the rise. 74% would switch gasoline brands in the same situation. As a Premium user you get access to the detailed source references and background information about this statistic. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. Concerned about allegations of greenwashing claiming a product is green when its not many brands are turning to organisations such as Climate Neutral, Foundation Myclimate and members of the Global Ecolabelling Network to legitimise their claims. She's vocal about the fact that it costs a lot more than shirts from a company like H&M specifically because she only uses sustainable goods and ethical practices when it comes to the workers. Are consumers willing to pay more for these? For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. To use individual functions (e.g., mark statistics as favourites, set You need at least a Starter Account to use this feature. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. For years, brand managers have groused that consumers say they intend to buy sustainable products but dont actually buy them. A weekly update of the most important issues driving the global agenda. 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%. The first-ever edition of the companys Business of Sustainability Index found that nearly two-thirds (64%) of Americans are willing to pay more for sustainable products but most (74%) dont know how to identify them. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. All rights reserved. Call me a geek, but I do love a good research report! 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. 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. 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. When browsing beauty products, my first question is, "Is it cruelty-free?" 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. 28 Feb 2023 --- Sustainability factors are increasingly influencing the purchasing behavior of European consumers, according to a study published by crop nutrition company Yara International via IPSOS. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Sixty-six percent of global respondents say they are willing to pay more for sustainable goods, up from 55% in 2014 (and 50% in 2013). Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. Companies have used this conventional wisdom as justification for not making their products more sustainable. Our eBook "What ESG means to you and your consumers in 2022" is designed to help Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. Companies that are able to navigate the business of sustainability will be best positioned for future success.. 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%. Its hard to ignore the siren call to protect the planet. As economists say, as price lowers, our willingness and ability to buy an item increase. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. A substantial portion of consumers are currently willing to pay for sustainability, demonstrating that there is a market for mission-driven green companies and why we see a rise in sustainable companies around the world. Why cities should be fully recognized stakeholders within the UN system, This Architect Says Sustainable Timber Could Be The Future Of Our Cities, 3 solutions helping net-zero aviation take off, is affecting economies, industries and global issues, with our crowdsourced digital platform to deliver impact at scale. Products they buy poor living conditions across the globe for sustainable goods in as. Prosek.Com, Internet Explorer presents a security risk the conventional wisdom isnt true background information about this statistic to... More traditional influences for many consumers stores rank lower at 51 % ) said they are to... 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