Hence, despite environmental concern and the positive attitude of customers towards sustainability and green products, its estimated the market share of green products will reach only 25% of store sales by 2021. not how pretty the blush is. An online survey of more than 1,000 consumers took place in July and found 68% of respondents said they were willing to pay more for sustainable products. Sustainability-marketed products are growing quickly in almost all CPG categories. Nudge theory is used to understand how people think, make decisions and behave. Rudominers lifelong passion is using communication to foster social change. We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. In China, 41% of consumers say that they want eco-friendly products. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. Marketers, operators, and merchants need to take the following steps: one, penetrate the right segment; two, unlock what motivates that segment to spend money; and three, act on strategies that build loyalty through ongoing consumer engagement. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. 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. The future for CPG, and increasingly for other categories such as apparel, is sustainable. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. 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 . Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. Seventh Generation, Sundial Brands, and Pukka Herbs. This sum will continue to grow exponentially as more Millennials reach peak buying power. ", Deloitte, Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category Statista, https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/ (last visited March 02, 2023), Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph], Deloitte, January 18, 2023. 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%. Our eBook "What ESG means to you and your consumers in 2022" is designed to help The survey reports that 58% of Europeans consider climate impact . "Consumers are really seeking to purchase products that help them stay true to their values and what they consider matters most to them," said Parker. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? Design But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. 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%). Professor of Marketing and Consumer Behaviour, Queensland University of Technology. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. 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). , Feb 8, 2023. 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. Learn more about how Statista can support your business. Profit from the additional features of your individual account. As a Premium user you get access to the detailed source references and background information about this statistic. 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 . As economists say, as price lowers, our willingness and ability to buy an item increase. statistic alerts) please log in with your personal account. Recent Study Reveals More Than a Third of Global Consumers Are Willing to Pay More for Sustainability as Demand Grows for Environmentally-Friendly Alternatives While attitudes vary across. 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. A 2014 Nielsen study found that 55 percent of global consumers are so passionate about the planet and its people that they're willing to pay more for products and services provided by. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. According to market research firm Nielsen, just 22% of the world's consumers were willing to pay more for an eco-friendly product in 2011, despite the fact 83% thought it was important. www.simon-kucher.com, Internet Explorer presents a security risk. Additionally, one third of Millennials will choose a sustainable alternative when available, whereas older generations are less likely to actively choose sustainable alternatives (24-29 percent). Are you making an effort to reach these socially conscious young people? It can be done. In, Deloitte. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. But nearly 60% are unwilling to pay more money for that eco-friendly product.. 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. 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. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. 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. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. Question: Socially conscious Consumers In March 2015, a Nielsen global online survey "found that consumers are increasingly willing to pay more for socially responsible products. GreenPrint In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). 69% of 18-44-year-olds would be willing to spend more on eco-friendly products, compared to 50% of those aged 45 and over. "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. 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. January 18, 2023. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. One-third of millennials often or exclusively use investment products that take ESG factors into account 19% of Gen Z, 16% of Gen X and 2% of baby boomers. You need at least a Starter Account to use this feature. Complete study findings are available upon request, including country splits. 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. Feb 28, 2023. Younger shoppers are the most willing to. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . That across the board, consumers are willing to pay extra for one thing: sustainability. 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. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. Climate-friendly defines products that reduce damage specifically to the climate. All these terms are used in labelling to make us feel good if we buy products claimed to minimise harm to the planet and the environment. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Show publisher information About a 3 minute read. Its hard to ignore the siren call to protect the planet. Droits d'auteur 20102023, The Conversation France (assoc. 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. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. As soon as this statistic is updated, you will immediately be notified via e-mail. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. 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