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. "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. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . 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. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. 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 fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. Millennials make up the fastest growing force in the marketplace. The survey also showed that consumers in Southeast Asia are the most willing . But brands can nudge consumers towards more eco-friendly 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. Consumers from 60 countries were surveyed for this report. 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. Younger shoppers are the most willing to. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. The survey is conducted among 48 percent of female and 52 percent male respondents. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. 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. BOSTON--(BUSINESS WIRE)--With COP26, the 2021 United Nations Climate Change Conference, just weeks away, a major study of more than 10,000 people across 17 countries shows that sustainability is becoming increasingly important in consumers purchasing decisions, especially as consumers see themselves, along with for profit companies, as the primary catalysts for change. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. CPGs that are not making the pivot will lose Kraft Heinz, whose investors have encouraged a cost-cutting approach that is backfiring, is a case in point. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. 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. 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. 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. But nearly 60% are unwilling to pay more money for that eco-friendly product. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. Mr Harrison says, however, that customers are becoming more canny. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. You can unsubscribe at any time using the link in our emails. Our eBook "What ESG means to you and your consumers in 2022" is designed to help Some of the necessary transformation can be accomplished by reinventing legacy products, as Unilever has shown with its sustainable living brands, now delivering 70% of its turnover growth. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. 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%). To use individual functions (e.g., mark statistics as favourites, set 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. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. 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. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. As a Premium user you get access to the detailed source references and background information about this statistic. not how pretty the blush is. Among millennials,. But nearly 60% are unwilling to pay more money for that eco-friendly product.. 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. 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. 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. Prosek Partners Simple economies of scale also impact on price. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. Saving biodiversity: why our mental and physical health depends on it. 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. I dream of a world in which all factory farms are destroyed. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. Then you can access your favorite statistics via the star in the header. In fact, almost half (41%) of consumers from around the world say that theyre highly willing to pay more for products that contain all-natural or organic ingredients. 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). The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Consumers want #sustainable packaging - and most of them would pay more for it. Statista. This likely depressed the growth numbers, as many brands have become more sustainable over time. 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. Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. Designed by Elegant Themes | Powered by WordPress, 66% of survey respondents are willing to pay more for sustainable goods, up from 55% in 2014, and 50% in 2013. Traditional advertising will not work with Millennials. I'm willing to pay significantly more to support quality products and human rights, and put my money where my mouth is when it comes to creatingthe world in which I want to live. Those earning $20,000 or less are actually 5% more willing than those with incomes greater than $50,000 to pay more for products and services that come from companies who are committed to positive social and environmental impact (68% vs. 63%). 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. Call me a geek, but I do love a good research report! 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%. Gary Mortimer ne travaille pas, ne conseille pas, ne possde pas de parts, ne reoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a dclar aucune autre affiliation que son organisme de recherche. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. As a Premium user you get access to background information and details about the release of this statistic. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. ", 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. Please create an employee account to be able to mark statistics as favorites. We are interested in estimating the proportion of all consumers willing to pay more. 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). As soon as this statistic is updated, you will immediately be notified via e-mail. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. 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. Nudge theory is used to understand how people think, make decisions and behave. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. It can be done. Businesses are in a bind. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. Are consumers really willing to pay more for sustainable products? For this reason, the demand for sustainable foods is growing in the market. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. This is especially true for Millennials. When looking at food items like coffee, I want to know first that it's Fair Trade. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. 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. 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). Consumers' demand for sustainable products is increasing. : (617) 231-4551 Nielsen 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. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). Brands can bring their CSR efforts to life through authentic storytelling. 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 This behaviour isn't just limited to the wealthy in big economies. 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. 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. In 2014, less than 30 . 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. As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . 470-788-0718 Fifty percent of global consumers are willing to pay more for goods and services from companies that have implemented programs to give back to society, according to a new study from Nielsen. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. Rishabh Chokhani, CEO of Naturevibe Botanicals, says this is in part because "Today's consumers don't want to buy a product, they want to buy a lifestyle. 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. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. 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%. About a 3 minute read. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. As a result, many consumers have adopted more sustainable behaviors. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. 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. how much more are you willing to pay compared to regular goods) when purchasing the following categories? In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. 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. 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. Green is the new black: why retailers want you to know about their green credentials. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. 1901), Lexpertise universitaire, lexigence journalistique. This shows that sustainability has been on consumers' minds for quite. 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. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. They expect a two-way, open dialogue with companies and their brands. 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, 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. to incorporate the statistic into your presentation at any time. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. Currently, you are using a shared account. Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. 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 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%. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. Rachel Pope 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. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. Rudominers lifelong passion is using communication to foster social change. Nearly three . Michele Koch Learn more about how Statista can support your business. 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 Reports, such as Nielsen Insights , suggest the majority (73 percent) of people would change their consumption habits to reduce their impact on the environment, and almost half . 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 . tel. 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. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. 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). Checking labels before buying. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. 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. 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. 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. Are you making an effort to reach these socially conscious young people? 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). (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. Feb 28, 2023. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. 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. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. 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). On a global scale, the percentage of consumers willing to pay a premium for. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. statistic alerts) please log in with your personal account. Our own 2019 report, " The State of Consumer Spending: Gen Z . Consumer-goods brands that fail to take this into account will likely fall behind.. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. 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. 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. When it comes to purchase behavior, its become abundantly clear that consumers care. Companies have used this conventional wisdom as justification for not making their products more sustainable. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Our analysis looked at products on-pack communication about their sustainability. This figure is even higher for millennials (73%) and Generation Z (72%). A survey of 51 retail senior-level . 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. 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 companies look to break into new markets, they must understand that each market demands its own approach. 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. 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. In a free market economy, it is very difficult to force people to pay more for products. Percentage points exceeding 100 percent are probably due to rounding. Get in touch with us now. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. To trust a company statement, 45% of Americans say they need a third-party validating source. Companies must act now to avoid obsolescence in the future. Others are working for or supporting organizations dedicated to social and environmental change. Growth in otherwise declining categories references and background information about this statistic: our! The marketplace continue to burgeon, the voice of younger generations will only increase the for! 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consumers willing to pay more for sustainable products nielsen