Create a free account and access your personalized content collection with our latest publications and analyses. The firm has over 1,400 employees in 41 offices worldwide. This figure is even higher for millennials (73%) and Generation Z (72%). Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. Checking labels before buying. 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. 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. : (617) 231-4551 Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. I can attest to the fact that sustainability isn't just something I "sorta kinda" consider--it's one of the primary reasons I either buy or don't buy from consumer brands. Show publisher information 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. Colloquially, use of the word green is applied broadly to almost everything related to benefiting the environment, from production and transportation to architecture and even fashion. Businesses must adapt to the times as consumers are voting with their wallets and Millennials, in particular, are demanding that companies put their money where their mouth is. 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. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . Millennials want to know what companies are doing to make the world a better place. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. For this group, personal values are more important than personal benefits, such as cost or convenience. 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 And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. Voir les partenaires de TheConversation France. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. Again, younger generations lead the way as higher shares of Generation Z (39 percent) and Millennials (42 percent) are willing to pay for sustainability compared to Gen. X (31 percent) and Baby Boomers (26 percent). Our analysis looked at products on-pack communication about their sustainability. If you have a question youd like an expert to answer, please send it to climate.change@stuff.co.nz. And investors should support companies in making the investments needed for the pivot. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. It can be used to help people improve their thinking and decisions. Prosek Partners Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. The future for CPG, and increasingly for other categories such as apparel, is sustainable. Nudge theory is used to understand how people think, make decisions and behave. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. Are you interested in testing our business solutions? When it comes to purchase behavior, its become abundantly clear that consumers care. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. Complete study findings are available upon request, including country splits. e-mail: rachel.pope@simon-kucher.com Then you can access your favorite statistics via the star in the header. Im seeing quite a few climate-friendly products at the supermarket. 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. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. 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. 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. lire aussi : 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. Register in seconds and access exclusive features. 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. Or to remain unmoved by those facing increasingly poor living conditions across the globe. Good Environmental Choice Australia is a similar organisation. Saving biodiversity: why our mental and physical health depends on it. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. The survey is conducted among 48 percent of female and 52 percent male respondents. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. Original survey question: How much of a premium are you willing to pay for green consumption (i.e. Our eBook "What ESG means to you and your consumers in 2022" is designed to help 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). A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. Businesses that under-appreciate the need for CSR do so at their peril. [Online]. 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. 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. 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. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. 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. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. That across the board, consumers are willing to pay extra for one thing: sustainability. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. 9. Green is the new black: why retailers want you to know about their green credentials. 65% would be willing to spend up to 20% more on eco-friendly products. (January 18, 2023). Can changing your mindset change everything? I don't want to support companies that don't care about how the animals and/or workers are treated, and I do want to support those that do. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. That across the board, consumers are willing to pay extra for one thing: sustainability. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. Looking at web sites for information on business and manufacturing practices. Consumers have some understanding of what makes a product sustainable but it is not necessarily a consideration when making a purchase Although the majority of consumers recognise what makes a product sustainable i.e. On a global scale, the percentage of consumers willing to pay a premium for. Businesses must adapt to the times as consumers . This behaviour isn't just limited to the wealthy in big economies. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. While the survey respondents were answering questions . Others are working for or supporting organizations dedicated to social and environmental change. 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. 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. Almost three quarters of the . This is especially true for Millennials. 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. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. 470-788-0718 While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. 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. Are consumers really willing to pay more for sustainable products? So when it comes to purchasing, they are doing their homework. That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. While 66 percent of global consumers are willing to pay. 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. '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. how much more are you willing to pay compared to regular goods) when purchasing the following categories? Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. Among millennials,. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. Academic research has consistently identified this gap between purchase intentions and behaviours. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. As a result, many consumers have adopted more sustainable behaviors. Traditional advertising will not work with Millennials. 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. All rights reserved. She's vocal about the fact that it costs a lot more than shirts from a company like H&M specifically because she only uses sustainable goods and ethical practices when it comes to the workers. Get in touch with us now. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Indeed, one recent report revealed that certain categories of products with . Design You need a Statista Account for unlimited access. Nielsen combines sustainability into free-from, clean, simple, sustainable and . For the US, 22 percent of consumers indicate major changes to the behavior, but that number jumps to 55 percent when including those who say theyve at least made some modest changes. Defending and preserving our planet is not only the right thing to do, its good business. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. Products must meet similar standards (ISO 14020 and ISO 14024). New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making 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. In 2014, less than 30 . . 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. 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. 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. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. Sixty-six percent of global respondents say they are willing to pay more for sustainable goods, up from 55% in 2014 (and 50% in 2013). About a 3 minute read. Access to this and all other statistics on 80,000 topics from, Show sources information Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. Most important,. 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. Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. 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). This is especially true for Millennials. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . We also reviewed which categories had the largest share of sustainability-marketed products. But nearly 60% are unwilling to pay more money for that eco-friendly product.. I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. 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. 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. 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. While the demand for such products remains low, the price remains high. What is the World Economic Forum doing about the circular economy? 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. Green is the new black: why retailers want you to know about their green credentials, Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. Even toys can get the climate-friendly treatment. This sum will continue to grow exponentially as more Millennials reach peak buying power. A survey of 51 retail senior-level . Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? 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. 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. In fact, the majority (73%) of global consumers say they would definitely or probably change their consumption behavior to reduce their impact on the environment. 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. This isn't a pipe dream. Sustainability sentiment is particularly consistent across income levels. 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. 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 The bottom line is that the corporate world cannot ignore the demands and expectations of Millennials, who are devout in their desire to associate with companies aligned with their values. 5 Ways to Connect Wireless Headphones to TV. 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). People want to feel that whatever they are buying aligns with their personal values. 77% of Americans are concerned about the environmental impact of products they buy. 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. Paying attention to public opinion on specific brands in the news or on social media. 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. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. 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. Percentage points exceeding 100 percent are probably due to rounding. As economists say, as price lowers, our willingness and ability to buy an item increase. Its hard to ignore the siren call to protect the planet. There are several reasons for this. 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.. Consumers want #sustainable packaging - and most of them would pay more for it. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Research expert covering e-commerce and FMCG in Greater China, Profit from additional features with an Employee Account. In, Deloitte. 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 the first generation to grow up with climate change as a defining issue, Gen Z is deeply . Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. A willingness to pay more for "sustainable" products. This likely depressed the growth numbers, as many brands have become more sustainable over time. Statista. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. Our own 2019 report, " The State of Consumer Spending: Gen Z . 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. 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). Globally, 85 percent of people indicate that they have shifted their purchase behavior towards being more sustainable in the past five years -- however, we observe meaningful generational differences in attitude. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. When browsing beauty products, my first question is, "Is it cruelty-free?" Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. What is the Green List and how can it help protect the worlds natural wonders? All Rights Reserved. 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. 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. 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. 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). 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. 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%). Why cities should be fully recognized stakeholders within the UN system, This Architect Says Sustainable Timber Could Be The Future Of Our Cities, 3 solutions helping net-zero aviation take off, is affecting economies, industries and global issues, with our crowdsourced digital platform to deliver impact at scale. Theconversation AU collection with our latest publications and analyses mental and physical health depends on it issue for that.... A few climate-friendly products at the sales from 2013 to 2018 of products marketed as sustainable grew times. This one limited to US respondents Choice new Zealand is the green list and how it! Continue to grow exponentially as more millennials reach peak buying power our latest and! Price lowers, our willingness and ability to buy an item increase 60 countries around the a. Categories of products did n't even cross the minds of those shopping financement en que. 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