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. Most important,. Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. When it comes to purchase behavior, its become abundantly clear that consumers care. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? While 66 percent of global consumers are willing to pay more for sustainable goods, a full 73 percent of Millennials are (Nielsen defines Millennials as those born from 1977 to 1995). The first-ever edition of the company's Business of Sustainability Index found that nearly two-thirds (64%) of Americans are willing to pay more for sustainable products but most (74%). Social responsibility is a critical part of proactive reputation management. 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. Are consumers really willing to pay more for sustainable products? When looking at both Baby Boomers and Generation X, 24 percent across each have significantly changed their behavior towards being more sustainable -- this figure climbs to 32 percent for Millennials. We are interested in estimating the proportion of all consumers willing to pay more. For example, one study found Spanish consumers were willing to pay 2237% more for green products, but Japanese consumers were only willing to pay 822% more for green products. . An Inc. 5000 company and a member of 1% Percent for the Planet, GreenPrints turnkey offerings help companies meet sustainability goals while increasing brand value and customer loyalty making it easy for businesses to do well by doing good. Register in seconds and access exclusive features. 315-409-9435 TV ads highlighting a companys commitment to positive social and/or environmental impact are influential in the path to purchase for 34% of global respondents. Millennials already played a significant . 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. Consumers have some understanding of what makes a product sustainable but it is not necessarily a consideration when making a purchase Although the majority of consumers recognise what makes a product sustainable i.e. If you are an admin, please authenticate by logging in again. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. We assessed third-party certification, such as USDA organic and Fair Trade, and the packagings claims about undesirable traits (such as genetically modified, BPA, parabens, antibiotics, growth hormones) and positive characteristics (local, grass-fed, compostable, animal crueltyfree). Are you interested in testing our business solutions? Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. But nearly 60% are unwilling to pay more money for that eco-friendly product. We also reviewed which categories had the largest share of sustainability-marketed products. In other words, I'm willing to spend more (a lot more, in fact) to know that what I'm spending my money on is actually good for the earth and the people on it. Its hard to ignore the siren call to protect the planet. 75% of millennials are willing to pay extra for sustainable products.3Coffee cups, palm oil, and single-use plastics are some recent products to face public discussion, which leaves businesses rethinking both the sustainability of their materials and processes, and the environmental impact and recyclability of their products. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. From procuring raw materials to shipping the final product, almost all steps of the manufacturing and production process of eco-friendly products cost more than traditional products. 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. Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. It's not just a morally good idea, either; it's lucrative. 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. Our analysis looked at products on-pack communication about their sustainability. Companies that are able to navigate the business of sustainability will be best positioned for future success.. 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. Minds can be changed, laws can be changed, and companies can be changed. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. Michele Koch According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. Colloquially, use of the word green is applied broadly to almost everything related to benefiting the environment, from production and transportation to architecture and even fashion. Sustainable materials cost more to grow and manufacture, reputable third-party certifications add further costs and using organic materials is more expensive than alternatives such as mass-produced chemicals. Businesses are in a bind. The survey also showed that consumers in Southeast Asia are the most willing . 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. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). In China, 41% of consumers say that they want eco-friendly products. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. And according to Nielsen, I'm not alone in that. Even toys can get the climate-friendly treatment. Brands that establish a reputation for social responsibility and environmental stewardship among todays youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too, says Farraj. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. 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 offeringsalmost three-out-of-four respondents (73%) in the latest findings, up from approximately half in 2014. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. While 66 percent of global consumers are willing to pay. In this category, catering to consumer demand for a more sustainable shampoo not only benefits the environment, but it also bolsters the bottom line of companies smart enough to give them what they want. GreenPrint IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. (January 18, 2023). Get in touch with us now. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. Consumers are voting with their dollars against unsustainable brands. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. 1 Over 30,000 people in 60 countries were polled about their purchasing habits, and 66% of respondents said that they were willing to pay more for products and services from companies who are committed to positive social and environmental impact. In a free market economy, it is very difficult to force people to pay more for products. Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. Businesses that under-appreciate the need for CSR do so at their peril. We used clothing brand Reformation as a case study of sorts and spoke with experts in consumer behavior and the fashion industry to better understand the sustainability movement, why consumers love it, and how more brands can do their part. Green is the new black: why retailers want you to know about their green credentials, Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. Brands can bring their CSR efforts to life through authentic storytelling. However, as demand grows for sustainable products and they become the expectation rather than the exception, sustainability will become table stakes and hygiene factors, said Jain. lire aussi : Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. While the demand for such products remains low, the price remains high. 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). You need at least a Starter Account to use this feature. Meanwhile, fish and seafood dollars and units rose 8.7% and 2.7%, respectively, from 2017 to 2019, outpacing the growth of other proteins, including legumes, nuts and seeds. A Global Corporate Sustainability Report published by Nielsen indicates that, "globally, 66 percent of consumers are willing to spend more on a product if it comes from a sustainable brand. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. When expanded it provides a list of search options that will switch the search inputs to match the current selection. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Using multiple communication methods is important to demonstrate good deeds, such as third-party validation (news coverage), annual reports, affiliation with a respected non-profit or civic organization, employee volunteerism, advertising, or reporting actual work in the community on a web site. The top attributes that more than one-third of consumers were willing to pay more for included: cruelty free (31%), farm raised (32%), organic farming (33%) and environmentally friendly (33.5%). This is especially true for Millennials. What is the World Economic Forum doing about the circular economy? The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. 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 . Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. 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. statistic alerts) please log in with your personal account. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. For additional market-level insights, read or Unpacking the Sustainability Landscape report. Consumers are also willing to pay more for chocolate products that are free-from 'undesirable' or artificial ingredients, a subset of products that makes up 15.2% of the overall chocolate category . Third-party validation helps certify progress in the eyes of consumers, and the process of carbon offsetting which is easy to measure and communicate helps create tangible benchmarks. [Online]. Carbon dioxide emissions in France 1970-2021, Share of e-commerce GHG emissions worldwide 2020, by source, Leading e-commerce delivery methods used in France 2021, Average product return rates among digital shoppers in Europe 2021. Wed suggest they follow the data. About a 3 minute read. Defending and preserving our planet is not only the right thing to do, its good business. In the past year alone, 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%. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . Products that we deemed sustainability-marketed in 2018 were considered sustainability-marketed in 2013 too, as we were unable to examine 2013 packaging for all products. To ensure consistent and accurate representation of the U.S. general population 18 years of age and older, data was weighted by the following variables: sex, age, geographic region, race/ethnicity, and education. Statista. Sustainability-marketed products are growing quickly in almost all CPG categories. On a global scale, the percentage of consumers willing to pay a premium for. A paid subscription is required for full access. The latest IAG New Zealand Ipsos poll found almost four out of five people (79%) say climate change is an important issue for them, the same number as last years poll. Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. Again, younger generations lead the way as higher shares of Generation Z (39 percent) and Millennials (42 percent) are willing to pay for sustainability compared to Gen. X (31 percent) and Baby Boomers (26 percent). The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. In its 2015 Nielsen Global Corporate Sustainability Report, Nielson found that "66% of global consumers say they're 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. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. Theres a noticeable break between generations, with 71% and 66% of Millennials and Gen Z willing to do so, compared to only 50% Gen X, 46% of Boomers and 39% Silent Generation. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. Nielsen combines sustainability into free-from, clean, simple, sustainable and . Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. Use Ask Statista research Service, among residents in China as of November 2022, by Category for additional insights! 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