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. What is the World Economic Forum doing about the circular economy? Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. Consumers from 60 countries were surveyed for this report. You can only download this statistic as a Premium user. Our eBook "What ESG means to you and your consumers in 2022" is designed to help 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. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. This shows that sustainability has been on consumers' minds for quite. 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. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Others are working for or supporting organizations dedicated to social and environmental change. Most important,. Almost three quarters of the . Georgetown University School of Continuing Studies. Small brands in this space are also attracting the bigger players attention Unilever has purchased brands with loyal followings such as Seventh Generation, Sundial Brands, and Pukka Herbs. That across the board, consumers are willing to pay extra for one thing: sustainability. In the US, this number is just over the global average at 61 percent. It can be used to help people improve their thinking and decisions. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and To use individual functions (e.g., mark statistics as favourites, set Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. It can be done. Please do not hesitate to contact me. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. Companies that are able to navigate the business of sustainability will be best positioned for future success.. Seventh Generation, Sundial Brands, and Pukka Herbs. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. Our analysis did not include the term natural (which is ubiquitous but means nothing) or marketing claims related to social causes or charities. Then you can access your favorite statistics via the star in the header. 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. 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. As a Premium user you get access to the detailed source references and background information about this statistic. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. An international study of 20,000 customers by grocery brand giant Unilever identified one in three (33%) people were choosing to buy from brands they believe are doing environmental good. Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. Both are good tools for building trust. 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. 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. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. www.simon-kucher.com, Internet Explorer presents a security risk. About three in four Millennials (74 percent) and Generation Z consumers (72 percent) are willing to pay more for sustainable products and services, according to The Nielsen Company. 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. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. It's not just a morally good idea, either; it's lucrative. Zach Harris 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 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. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. (January 18, 2023). A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. Looking at web sites for information on business and manufacturing practices. 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. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. 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 across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. About a 3 minute read. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. Consumers' demand for sustainable products is increasing. Brands can bring their CSR efforts to life through authentic storytelling. Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. 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. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. If you have a question youd like an expert to answer, please send it to climate.change@stuff.co.nz. 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. 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. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. To a certain degree, products that need to have a higher degree of efficacy (such as laundry care and sanitary napkins) were more likely to have a lower share of sustainability-marketed products, perhaps because consumers are concerned about performance trade-offs. Rudominers lifelong passion is using communication to foster social change. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. For this group, personal values are more important than personal benefits, such as cost or convenience. 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. What is the Green List and how can it help protect the worlds natural wonders? lire aussi : 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. The study also found a large degree of mistrust about companies environmental claims. There are several reasons for 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. Complete study findings are available upon request, including country splits. Businesses must adapt to the times as consumers . 74% would switch gasoline brands in the same situation. But the results should be interpreted cautiously. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. And investors should support companies in making the investments needed for the pivot. They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. And according to Nielsen, I'm not alone in that. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. 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. 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. 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. 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. Are consumers really willing to pay more for sustainable products? Are you interested in testing our business solutions? That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". Design Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. 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. 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. When it comes to purchase behavior, its become abundantly clear that consumers care. 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. This likely depressed the growth numbers, as many brands have become more sustainable over time. 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. . Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. 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. Concerned about allegations of greenwashing claiming a product is green when its not many brands are turning to organisations such as Climate Neutral, Foundation Myclimate and members of the Global Ecolabelling Network to legitimise their claims. Indeed, one recent report revealed that certain categories of products with . michele@greenprintcorp.com 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. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. 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%. 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%. to incorporate the statistic into your presentation at any time. 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). The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. Chart. zharris@prosek.com, Internet Explorer presents a security risk. This is the result of a representative survey that we commissioned from INNOFACT. Consumer-goods brands that fail to take this into account will likely fall behind.. This desire for sustainable products among Gen Z is robust. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. On a global scale, the percentage of consumers willing to pay a premium for. Green consumption includes more environmentally friendly raw materials, packaging and production methods, lower carbon emissions during transportation and use, and better protection for people involved in production and trade. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. 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 . 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. Get full access to all features within our Business Solutions. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. This is especially true for Millennials. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. 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 . This figure is even higher for millennials (73%) and Generation Z (72%). According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. 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. 65% would be willing to spend up to 20% more on eco-friendly products. For further information please contact: 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The survey reports that 58% of Europeans consider climate impact . 14040 ) and Generation Z ( 72 % ) and Generation Z ( 72 % ) statistics the. Environmentally friendliness revealed that certain categories of products with at risk on many fronts, says:... To climate.change @ stuff.co.nz companies in making the investments needed for the pivot over the global average at percent. ( 73 % ) say food companies need to work to reduce the emissions.! Cost or convenience used to help people improve their thinking and decisions are at risk on many fronts says. 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