Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. 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.. Profit from the additional features of your individual account. As companies look to break into new markets, they must understand that each market demands its own approach. 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. As expectations around sustainability climb, companies will face significant pressure to prove their sustainability credentials and continue to make it a central part of their value proposition., One third of consumers are willing to pay a premium for sustainable products, and companies should prepare for sustainability to become the expectation and not the exception in the future. For further information please contact: As CPG sales spiked . More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. Since then, the trend has only increased: a 2015 Nielsen poll showed that 66% of global consumers are willing to pay more for environmentally sustainable products. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. You need a Statista Account for unlimited access. I dream of a world in which all factory farms are destroyed. 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. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . 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. Among millennials,. Millennials make up the fastest growing force in the marketplace. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. Are consumers really willing to pay more for sustainable products? A weekly update of the most important issues driving the global agenda. Toilet tissue, facial tissue, milk, yogurt, coffee, salty snacks, and bottled juices were among those with the highest share in their category (more than 18%), while laundry care, floor cleaner, and chocolate candy had less than a 5% share. What do these findings mean for corporate managers and investors? Can changing your mindset change everything? Seventh Generation, Sundial Brands, and Pukka Herbs. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. to incorporate the statistic into your presentation at any time. Get the full study Join Your Peers Climate-friendly defines products that reduce damage specifically to the climate. 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. how much more are you willing to pay compared to regular goods) when purchasing the following categories? 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%. 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. 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. That across the board, consumers are willing to pay extra for one thing: sustainability. Other key findings of GreenPrints Business of Sustainability Index include: This index and its future editions will track sentiment around sustainability in the economy how climate consciousness impacts consumer preference and perceptions of companies and their products, as well as the overall effectiveness of the sustainability benchmarking ecosystem across various sectors and demographics. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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. Consumers want #sustainable packaging - and most of them would pay more for it. Even toys can get the climate-friendly treatment. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. 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. While attitudes towards sustainability vary between generations, they also vary across countries -- when looking at consumers who have either made significant changes to their purchasing behavior or completely changed their way of living to be more sustainable, Austria leads the way (42 percent), followed by Italy (41 percent), Spain (35 percent) and Germany (34 percent). Businesses must adapt to the times as consumers . Globally, willingness to pay for sustainable products or services is highest in US (42 percent), with these the US also representing the highest average premium (37 percent premium). 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. Nielsen's 2015 Global Corporate Sustainability Report has revealed that brands showing a commitment to sustainable practices are receiving support from consumers, who are willing to pay more for . Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. The Nielsen Global Survey of Corporate Social Responsibility and Sustainability was conducted between Feb. 23-March 13, 2015, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. Consumers from 60 countries were surveyed for this report. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. Show publisher information 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. She's a strong young feminist poet, an inspiration, and I trust her product because she was open about how she sourced the materials for it. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. 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. Please do not hesitate to contact me. 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. There are several reasons for this. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. The study surveyed 10,281 consumers across 17 countries: USA (N=1,062), Germany (N=1,022), Denmark (N=771), Sweden (N=757), Brazil (N=539), China (N=516), Japan (N=516), Spain (N=515), Switzerland (N=514), UK (N=513), Australia (N=510), Austria (N=510), France (N=510), the Netherlands (N=510), Norway (N=506), Italy (N=506), UAE (N=504), including representative quotas set for age, gender, living area, education level, employment status & income level. The future for CPG, and increasingly for other categories such as apparel, is sustainable. In, Deloitte. Nearly three . Defending and preserving our planet is not only the right thing to do, its good business. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. Voir les partenaires de TheConversation France. According to our Consumers Buy The Change They Wish To See in The World report, we found that natural and organic ingredients and certifications serve as the entry level point for nearly every market when it comes to sustainability attributes consumers are searching for. . But brands can nudge consumers towards more eco-friendly products. 5 Ways to Connect Wireless Headphones to TV. This figure is even higher for millennials (73%) and Generation Z (72%). Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. (January 18, 2023). 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. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. Good Environmental Choice Australia is a similar organisation. Companies that are able to navigate the business of sustainability will be best positioned for future success.. 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. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. While 66 percent of global consumers are willing to pay. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. You can only download this statistic as a Premium user. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? 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. 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%. All Rights Reserved. We also reviewed which categories had the largest share of sustainability-marketed products. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. A paid subscription is required for full access. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. 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. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. Companies have used this conventional wisdom as justification for not making their products more sustainable. Michele Koch Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. Surface Studio vs iMac - Which Should You Pick? To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. As economists say, as price lowers, our willingness and ability to buy an item increase. Design Create a free account and access your personalized content collection with our latest publications and analyses. 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%. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. About a 3 minute read. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. Will likely see a competitive advantage Pukka Herbs 73 % ) global environmental technology company, offering sustainability as result. 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