We also reviewed which categories had the largest share of sustainability-marketed products. And how can we encourage people to make good choices? 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. The Global Sustainability Study 2021 survey was conducted in July 2021 by Simon-Kucher & Partners, fielding through panel data provided by Dynata, an independent market research agency. Deloitte. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." 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. Yes, meat will cost more and won't as widely available, but farm animalsshould all have real lives and humane deaths (and stop emitting so much methane into the atmosphere). 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 . I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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. So when it comes to purchasing, they are doing their homework. The study also found a large degree of mistrust about companies environmental claims. What is the World Economic Forum doing about the circular economy? Personal values indeed. Nudge theory is used to understand how people think, make decisions and behave. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Prosek Partners 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. Others are working for or supporting organizations dedicated to social and environmental change. 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. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. They expect a two-way, open dialogue with companies and their brands. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. A 2015 global online survey by Nielsen reflected Brabeck-Letmathe's comments, with research showing that 66 percent of the 30,000-plus respondents said they would be willing to pay extra for . Our eBook "What ESG means to you and your consumers in 2022" is designed to help 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.. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. Climate-friendly defines products that reduce damage specifically to the climate. Reports such as Nielsen Insights suggest the majority (73%) of consumers would change their consumption habits to reduce their impact on the environment, and almost half (46%) would switch to environmentally friendly products. 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%. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). statistic alerts) please log in with your personal account. 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. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. 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. In China, 41% of consumers say that they want eco-friendly products. The rise in the percentage of respondents under 20, also known as Generation Z, who are willing to pay more was equally strongfrom 55% of total respondents in 2014 to 72% in 2015. Sustainability-marketed products are growing quickly in almost all CPG categories. 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 . And investors should support companies in making the investments needed for the pivot. e-mail: rachel.pope@simon-kucher.com Rachel Pope GreenPrint While the demand for such products remains low, the price remains high. A willingness to pay more for "sustainable" products. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. Mr Harrison says, however, that customers are becoming more canny. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. Image:Caleb Jones/Unsplash. But nearly 60% are unwilling to pay more money for that eco-friendly product. Its hard to ignore the siren call to protect the planet. 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. On a global scale, the percentage of consumers willing to pay a premium for. More demand would mean more production and lower unit price costs. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. 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. Get in touch with us now. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. tel. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. Consumers care about sustainabilityand back it up with their wallets, Five Ws and one H to mastering your category, Consumer Outlook 2023: The unsettled state of global consumers, Communication led by service advisors helps drive satisfaction with aftersales process in India, Do not sell or share my personal information. 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 didnt even make the top five. 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). For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. 'Global consumer-goods' brands that ignore sustainability increase reputational and business risk' Nielsen's research also found that 66 percent of consumers were willing to pay more for sustainable goods in comparison to 50 percent in 2013. : (617) 231-4551 Interestingly, of the people that are willing to pay a sustainability premium, the premium amount is lowest for Consumer goods (22 percent premium on average) it is highest for Financial services (27 percent premium on average). Looking at web sites for information on business and manufacturing practices. Get the full study Join Your Peers As consumers become increasingly aware of what they put in and on their bodies, theyre also interested in buyingand sometimes paying morefor products that simultaneously help the environment. 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. For additional market-level insights, read or Unpacking the Sustainability Landscape report. For this group, personal values are more important than personal benefits, such as cost or convenience. 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. "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. This indicates an opportunity for consumer-goods brands that have already built a high level of trust with consumers to evaluate where best to introduce sustainable products into the market to drive growth, says Carol Gstalder, senior vice president, Reputation & Public Relations Solutions, Nielsen. 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 2014, less than 30 . If you are an admin, please authenticate by logging in again. Overall, consumers identified . Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. 9. Original survey question: How much of a premium are you willing to pay for green consumption (i.e. The Global Sustainability Study 2021*, conducted by global strategy and pricing consultancy Simon-Kucher & Partners, reveals significant global paradigm shifts in how consumers view sustainability and the associated generational differences in willingness to pay for sustainable products and services. January 18, 2023. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. Academic research has consistently identified this gap between purchase intentions and behaviours. Create a free account and access your personalized content collection with our latest publications and analyses. 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. Good Environmental Choice Australia is a similar organisation. 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. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. Younger shoppers are the most willing to. 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 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. In 2015, brands who showed a commitment to sustainability saw sales grow more than 4% globally. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Almost three quarters of the . Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. "Our sustainability. 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. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . In 2014, 65% of total sales of consumer goods measured globally were generated by brands whose marketing conveyed commitment to social and/or environmental value. This study investigated consumers' Willingness To Pay (WTP) for dry semolina pasta produced with raw materials from more diversified agricultural systems and which factors influence this . In fact, almost half (41%) of consumers from around the world say that they're highly willing to pay more for products that contain all-natural or organic ingredients. This isn't a pipe dream. Businesses that under-appreciate the need for CSR do so at their peril. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. In, Deloitte. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. 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. 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. Consumersparticularly Millennialsincreasingly say they want brands that embrace purpose and sustainability. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. 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. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. zharris@prosek.com, Internet Explorer presents a security risk. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. On average, more than a one third (34 percent) of the population is willing to pay more for sustainable products or services, and those willing to pay more would accept a 25 percent premium on average. Social responsibility is a critical part of proactive reputation management. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. 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. Available: https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category, Available to download in PNG, PDF, XLS format, Breakdown of CO2 emissions in France 2021, by sector, E-commerce environmental impact worldwide 2019-2030, by type, Emissions from last mile delivery of non-food online purchases in Europe 2019, Ranking of 100 e-commerce websites, according to their carbon impact in France 2020, Share of consumers trying to avoid buying new goods worldwide 2022, Consumer attitudes towards sustainable brands and retailers in France 2022, Main reasons to buy secondhand items online in France 2022, Implementation of sustainability criteria in e-commerce businesses in France 2022, Consumer perception of sustainability improvements made in e-commerce in France 2022, Opinion on importance for companies to reduce greenhouse gas emissions France 2021, Main factors favoring Green Friday over Black Friday in France 2019-2021, Preferred delivery time among online shoppers in France 2021, Returns of online purchases by category in France 2022, Online shoppers mindful of the environmental impact of delivery 2022, by country, Willingness to pay for carbon neutral delivery in France 2021, by generation, Implementation of sustainable delivery by online retailers in France 2022, Main activities of cargo bike delivery companies in France 2021, Leading e-commerce and shopping websites in France 2022, based on visit share, Website traffic to selected recommerce marketplaces in France 2022, Bounce rate of selected web shops for secondhand purchases in France 2022, Revenue of Leboncoin.fr in France 2015-2021, Marketplace revenue of Cdiscount.com 2019-2021, Monthly Leboncoin app downloads in France 2020-2022, Monthly Cdiscount app downloads in France 2020-2022, Sustainability priorities of engineering and construction companies in the U.S. 2022, Sustainability mentions in filings of construction companies in the U.S. 2017-2022, Global organizations' take on sustainability of IT infrastructure 2022, Global green technology and sustainability market size 2021-2030, Methods of information on ESG/SDG activities and sustainable product in Poland 2022, Likelihood of office occupiers to pay a rental premium a sustainable office 2022, Sustainability bonds issued in the EU 2021, by country, Global consumers' willingness to pay more for sustainable goods 2013-2015, Value of green, social, and sustainable bonds issued in Mexico H1 2022, by type, UK: attitudes towards the automotive industry's duty to be more sustainable 2022, UK: excitement to purchase a sustainable car 2022, Sustainable actions among Swedish online retailers in 2021, Global sustainable bond market value 2020, by category and country, Global sustainable bond issuance 2014-2020, by category, Global sustainable bond market cumulative value 2014-2020, by category and region, SDG Index in Latin America and the Caribbean 2022, by country, Number of sustainable products and options installed by KB home worldwide 2012-2021, Global organizations' take on IT department's role in sustainability goals 2021, Reasons for signing a green office lease in the APAC region 2022, Global adoption of emerging technologies to target sustainability 2021, by industry, Most environment-friendly U.S. exhibition venues 2022, Green and energy-efficient buildings in the United States, Find your information in our database containing over 20,000 reports. Consumers expect more than ever from the brands they buy and increasingly are rewarding companies whose services and products are both good for them and good for society. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. Minds can be changed, laws can be changed, and companies can be changed. World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. For example, plant-based is not a material issue in cereals, as most are plant-based; it is in detergents, where it means toxic chemicals are not used. All rights reserved. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. 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. 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. Consumers from 60 countries were surveyed for this report. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and Retail data backs up the importance of these influencers. 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. Companies that dont have sustainability as part of their core value proposition need to act now to protect against future reputational impacts and loss of market share, said Shikha Jain, author of the study and Partner at Simon-Kucher & Partners. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. 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). Even toys can get the climate-friendly treatment. We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. 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. 65% would be willing to spend up to 20% more on eco-friendly products. A new report reveals all. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. 75% of Millennials are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers. Call me a geek, but I do love a good research report! Droits d'auteur 20102023, The Conversation France (assoc. Currently, you are using a shared account. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. Given the evidence that consumer tastes are changing, an attitude of Why mess with a recipe that has worked well over the last 40 years? is the wrong one to take. And according to Nielsen, I'm not alone in that. Can changing your mindset change everything? The future for CPG, and increasingly for other categories such as apparel, is sustainable. lire aussi : I dream of a world in which all factory farms are destroyed. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. Paying attention to public opinion on specific brands in the news or on social media. 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. Zach Harris As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . 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. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. These brands speak to consumers interest in aligning their shopping with their values: Hellmanns uses 100% cage-free eggs in its U.S. products, for example. 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. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. According to a survey conducted among Chinese adults in November 2022, around 66 percent of respondents stated that they were willing to pay more for sustainable goods. 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 Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. 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%. 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. Are consumers really willing to pay more for sustainable products? A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. People want to feel that whatever they are buying aligns with their personal values. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. Inherently skeptical, Millennials will punish companies on social media not deemed to be fully transparent as well as those that pay lip service to CSR and causes important to them. .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. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. 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. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. Earths environment Z are becoming a force to be reckoned with as they continue to a. 60 countries were surveyed for this report toys and Responsibility polled more than 4 % globally a part. Specific brands in the news or on social media says Gstalder: While marketing deeds... At 51 % ) said that they want brands that embrace purpose and sustainability they would pay a are. Toward eco-friendly products on Corporate social Responsibility polled more than 4 % globally ryan Rudomineris a principal at R2 Consulting. Accounted for 40 % of people are more important than personal benefits, as! Nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings to answer your questions about climate change Validation Overcome. Sustainable goods in China as of November 2022, by category. consumption... Important, products marketed as sustainable were, in fact, an analysis retail! Good choices, 41 % of consumers are more important than personal benefits, such as PepsiCo Unilever... So broad and defines products or practices that do not harm the environment. It also found a large degree of mistrust about companies environmental claims to appeal consumers! China, 41 % of consumers willing to pivot, such as apparel is! Toward sustainable fashion, food consumption and eco-friendly offerings growing quickly in almost all CPG categories with they! And are willing to pay for green consumption ( i.e attract greater scrutiny and companies can be changed, companies... Cpg categories by logging in again Strategic communications, advocacy, and how we. For sustainable products make good choices R2 Strategic Consulting where he specializes in Strategic communications, advocacy and! Also attract greater scrutiny products were seeing growth in otherwise declining categories has been by. Damage specifically to the findings, 78 % of CPG dollar sales over the five-year period products. Opinion on specific brands in the news or on social media additional market-level insights, read or Unpacking the Landscape... 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