Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. 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. 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. 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. 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. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. 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%). Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. As CPG sales spiked . This is the result of a representative survey that we commissioned from INNOFACT. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. There are several reasons for this. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. The survey reports that 58% of Europeans consider climate impact . Chart. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. All Rights Reserved. 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. As a Premium user you get access to background information and details about the release of this statistic. Millennials want to know what companies are doing to make the world a better place. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. This figure is even higher for millennials (73%) and Generation Z (72%). 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. It can be used to help people improve their thinking and decisions. For example, one study found Spanish consumers were willing to pay 2237% more for green products, but Japanese consumers were only willing to pay 822% more for green products. Georgetown University School of Continuing Studies. As companies look to break into new markets, they must understand that each market demands its own approach. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. Nielsen combines sustainability into free-from, clean, simple, sustainable and . The survey also showed that consumers in Southeast Asia are the most willing . Looking at web sites for information on business and manufacturing practices. 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. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. 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. . 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. But the results should be interpreted cautiously. 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. 77% of Americans are concerned about the environmental impact of products they buy. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. Reports such as Nielsen Insights suggest the majority (73%) of consumers would change their consumption habits to reduce their impact on the environment, and almost half (46%) would switch to environmentally friendly products. Studies show that people are geared towards using sustainable products more than others. The views expressed in this article are those of the author alone and not the World Economic Forum. 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. 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. 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. 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. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. And how can we encourage people to make good choices? 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. 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%. 315-409-9435 Green is the new black: why retailers want you to know about their green credentials. Climate-friendly defines products that reduce damage specifically to the climate. Retail data backs up the importance of these influencers. And investors should support companies in making the investments needed for the pivot. Most important,. 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. What is the Green List and how can it help protect the worlds natural wonders? The future for CPG, and increasingly for other categories such as apparel, is sustainable. As a Premium user you get access to the detailed source references and background information about 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 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 . The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. Zach Harris By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. For this group, personal values are more important than personal benefits, such as cost or convenience. [Online]. For fifteen years, Rudominer has operated on the front lines and behind the scenes of numerous communications campaigns, providing strategic counsel to public officials, corporations, trade associations, and non-profits. 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. 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.. This is a relatively new perspective for consumers. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. 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. tel. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. 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. Currently, you are using a shared account. 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. 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. Deloitte. Among millennials,. It's not just a morally good idea, either; it's lucrative. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. 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. Rudominers lifelong passion is using communication to foster social change. 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. 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. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? Indeed, one recent report revealed that certain categories of products with . This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. 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. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. 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).. 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 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. Please create an employee account to be able to mark statistics as favorites. Statista. The study also found a large degree of mistrust about companies environmental claims. Brands can bring their CSR efforts to life through authentic storytelling. 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). In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. Nielsen Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. 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. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. January 18, 2023. Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. 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. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. Millennials already played a significant . Wed suggest they follow the data. Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. A paid subscription is required for full access. 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. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. This is especially true for Millennials. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. Using multiple communication methods is important to demonstrate good deeds, such as third-party validation (news coverage), annual reports, affiliation with a respected non-profit or civic organization, employee volunteerism, advertising, or reporting actual work in the community on a web site. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. 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. Companies must act now to avoid obsolescence in the future. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. Sustainability-marketed products are growing quickly in almost all CPG categories. 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. About a 3 minute read. 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. 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. 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. While this statistic is telling on its own, what's more telling is that 81% of those interviewed said that they planned to buy more sustainable products over the next five years.. And environmental consciousness isn't a new trend among consumers. In 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. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. to incorporate the statistic into your presentation at any time. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. But nearly 60% are unwilling to pay more money for that eco-friendly product. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. , Feb 8, 2023. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. They expect a two-way, open dialogue with companies and their brands. What is the World Economic Forum doing about the circular economy? You need a Statista Account for unlimited access. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. 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