In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. This shows that sustainability has been on consumers' minds for quite. 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 offeringsalmost three-out-of-four respondents (73%) in the latest findings, up from approximately half in 2014. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. The firm has over 1,400 employees in 41 offices worldwide. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. 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 . 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. 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. 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. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. 5 Ways to Connect Wireless Headphones to TV. All Rights Reserved. All rights reserved. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. 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. 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. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. A survey of 51 retail senior-level . 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. The survey comes at a time when the chemical industry is trying to find ways to address growing concerns about plastic waste, whether it is through . Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? Vietnamese consumers are the most socially-conscious among Southeast Asians, with 86 percent expressing their willingness to pay extra for products and services from firms which are committed to positive social and environmental impact, a new Nielsen survey found. 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. , Feb 8, 2023. The relative importance of sustainability during the purchase process will continue to increase. On a global scale, the percentage of consumers willing to pay a premium for. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. 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. As a Premium user you get access to background information and details about the release of this statistic. 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). This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. 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%. Checking labels before buying. You need at least a Starter Account to use this feature. 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. This figure is even higher for millennials (73%) and Generation Z (72%). Percentage points exceeding 100 percent are probably due to rounding. Looking at web sites for information on business and manufacturing practices. statistic alerts) please log in with your personal account. 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). 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. michele@greenprintcorp.com In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. 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. Even toys can get the climate-friendly treatment. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . In Taiwan, for example, where 88% of surveyed consumers said that it is extremely or very important that companies implement programs to improve the environment, there is evidence of a growing trend in natural in personal care. This sum will continue to grow exponentially as more Millennials reach peak buying power. According to the2015 Cone Communications Millennial CSR Study, More than nine-in-10 Millennials would switch brands to one associated with a cause (91% vs. 85% U.S. average), and two-thirds use social media to engage around CSR (66% vs. 53% U.S. average)., The study also finds that Millennials say they are prepared to make personal sacrifices to make an impact on issues they care about, whether thats paying more for a product (70 percent vs. 66 percent US average), sharing products rather than buying (66 percent vs. 56 percent) or taking a pay cut to work for a responsible company (62 percent vs. 56 percent).. I dream of a world in which all factory farms are destroyed. But nearly 60% are unwilling to pay more money for that eco-friendly product. What is the World Economic Forum doing about the circular economy? (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. 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. The survey was fielded from February 15 to February 16, 2021 among a demographically balanced nationally representative sample of 1,017 U.S. adults 18 years of age and older. Sustainability is a worldwide concern that continues to gain momentumespecially in countries where growing populations are putting additional stress on the environment, says Grace Farraj, senior vice president, Public Development & Sustainability, Nielsen. 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%. 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. 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 fact, the majority (73%) of global consumers say they would definitely or probably change their consumption behavior to reduce their impact on the environment. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. When browsing beauty products, my first question is, "Is it cruelty-free?" Most important, products marketed as sustainable grew 5.6 times faster than those that were not. 2023 Nielsen Consumer LLC. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. to incorporate the statistic into your presentation at any time. Are consumers really 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. While 66 percent of global consumers are willing to pay. lire aussi : 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. While the survey respondents were answering questions . Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. 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. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Or to remain unmoved by those facing increasingly poor living conditions across the globe. 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. Businesses are in a bind. 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. 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. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. 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. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. 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. 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. Paying attention to public opinion on specific brands in the news or on social media. Companies must act now to avoid obsolescence in the future. 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. As a result, many consumers have adopted more sustainable behaviors. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . Seventh Generation, Sundial Brands, and Pukka Herbs. 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. 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%. 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. But the results should be interpreted cautiously. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. The study also found a large degree of mistrust about companies environmental claims. Learn more about how Statista can support your business. Please create an employee account to be able to mark statistics as favorites. 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). 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Millennials want to know what companies are doing to make the world a better place. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. 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. Profit from the additional features of your individual account. And investors should support companies in making the investments needed for the pivot. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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. 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. Voir les partenaires de TheConversation France. As soon as this statistic is updated, you will immediately be notified via e-mail. Nielsen's most recent Global Sustainability Report found that 66 percent of consumers said they were willing to pay more for sustainable brands, up from 55 percent in 2014. . 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 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. 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). For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. 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. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Deloitte. 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. lire aussi : : (617) 231-4551 Climate-friendly defines products that reduce damage specifically to the climate. For further information please contact: Consumers are voting with their dollars against unsustainable brands. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. 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. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. Mr Harrison says, however, that customers are becoming more canny. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. 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. Consumers across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. This is especially true for Millennials. Are you making an effort to reach these socially conscious young people? For years, researchers have examined climate-oriented consumption to see if it wins peoples support. 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. 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. 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. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. One overwhelming conclusion of the report? 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. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. Statista. 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. Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. Then you can access your favorite statistics via the star in the header. Complete study findings are available upon request, including country splits. 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. 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