The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. 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. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. Our analysis looked at products on-pack communication about their sustainability. Most important,. Retail data backs up the importance of these influencers. 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. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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. Nielsen combines sustainability into free-from, clean, simple, sustainable and . "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. An Inc. 5000 company and a member of 1% Percent for the Planet, GreenPrints turnkey offerings help companies meet sustainability goals while increasing brand value and customer loyalty making it easy for businesses to do well by doing good. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. The study surveyed 10,281 consumers across 17 countries: USA (N=1,062), Germany (N=1,022), Denmark (N=771), Sweden (N=757), Brazil (N=539), China (N=516), Japan (N=516), Spain (N=515), Switzerland (N=514), UK (N=513), Australia (N=510), Austria (N=510), France (N=510), the Netherlands (N=510), Norway (N=506), Italy (N=506), UAE (N=504), including representative quotas set for age, gender, living area, education level, employment status & income level. On a global scale, the percentage of consumers willing to pay a premium for. Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. 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. 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. Simple economies of scale also impact on price. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. 74% would switch gasoline brands in the same situation. More demand would mean more production and lower unit price costs. 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. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Good Environmental Choice Australia is a similar organisation. 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. 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. 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. This is especially true for Millennials. When looking at both Baby Boomers and Generation X, 24 percent across each have significantly changed their behavior towards being more sustainable -- this figure climbs to 32 percent for Millennials. We also reviewed which categories had the largest share of sustainability-marketed products. According to Chicago-based Nielsen's 2019 "Protein Proliferation" report, 19% of consumers surveyed said that they intended to increase their consumption of meat and seafood more than any other protein group. Are consumers willing to pay more for these? To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 77% of Americans are concerned about the environmental impact of products they buy. Top Wellness Trends for Emerging Brands in 2023, Leading alcoholic beverage health and wellness trends in the US, The Value of Data and Insights: ROI for Emerging Brands, Do not sell or share my personal information. You need at least a Starter Account to use this feature. Mr Harrison says, however, that customers are becoming more canny. . Nielsen's 2015 Global Corporate Sustainability Report has revealed that brands showing a commitment to sustainable practices are receiving support from consumers, who are willing to pay more for . The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. The survey reports that 58% of Europeans consider climate impact . We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Academic research has consistently identified this gap between purchase intentions and behaviours. 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. Im seeing quite a few climate-friendly products at the supermarket. Consumers want #sustainable packaging - and most of them would pay more for it. But nearly 60% are unwilling to pay more money for that eco-friendly product.. 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%. For more information, visit www.nielsen.com. 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. 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. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. 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. 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. e-mail: [email protected] In, Deloitte. 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. As soon as this statistic is updated, you will immediately be notified via e-mail. Checking labels before buying. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Learn more about how Statista can support your business. As economists say, as price lowers, our willingness and ability to buy an item increase. The views expressed in this article are those of the author alone and not the World Economic Forum. This sum will continue to grow exponentially as more Millennials reach peak buying power. This isn't a pipe dream. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. When browsing beauty products, my first question is, "Is it cruelty-free?" So while not all consumers will pay more for green climate-friendly products despite the best of intentions, we can slowly nudge them to make better choices for the planet. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. Access to this and all other statistics on 80,000 topics from, Show sources information Consumers across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. Younger shoppers are the most willing to. 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. Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. For further information please contact: 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). 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). In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. 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. The survey also showed that consumers in Southeast Asia are the most willing . They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. According to the report, sales of consumer goods from brands with a demonstrated commitment to sustainability have grown more than 4% globally in the past year, while those without grew less. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. You can unsubscribe at any time using the link in our emails. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. [email protected] 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. Marketed as sustainable, finds the conventional wisdom isnt true the Earths environment, sustainability-marketed products grew faster their. The percentage of consumers Who were willing to pay more for sustainable goods in China as of November,... But not all intentions are carried out million metric tons of carbon by 2025 American... That ignore sustainability increase reputational and business risk this article are those of the world Economic.! Companies should be aware that consumers are more actively taking steps towards being more sustainable conducted. 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