The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. 1901), Lexpertise universitaire, lexigence journalistique. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. As a Premium user you get access to the detailed source references and background information about this statistic. 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%. Voir les partenaires de TheConversation France. And according to Nielsen, I'm not alone in that. You need a Statista Account for unlimited access. A 2015 global online survey by Nielsen reflected Brabeck-Letmathe's comments, with research showing that 66 percent of the 30,000-plus respondents said they would be willing to pay extra for . This isn't a pipe dream. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. In 2015, brands who showed a commitment to sustainability saw sales grow more than 4% globally. , Feb 8, 2023. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. In terms of how much, Gen. Z (32 percent premium) and Millennials (31 percent premium) are willing to pay more than twice as big a premium as Baby Boomers (14 percent premium) and a third more relative to Gen. X (21 percent premium). Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. 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. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. statistic alerts) please log in with your personal account. The relative importance of sustainability during the purchase process will continue to increase. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. : (617) 231-4551 Those that had no such commitment grew less than 1%. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. That across the board, consumers are willing to pay extra for one thing: sustainability. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. To use individual functions (e.g., mark statistics as favourites, set 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. GreenPrint 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. Georgetown University School of Continuing Studies. 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. Hence, despite environmental concern and the positive attitude of customers towards sustainability and green products, its estimated the market share of green products will reach only 25% of store sales 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. Percentage points exceeding 100 percent are probably due to rounding. 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 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. 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%). Minds can be changed, laws can be changed, and companies can be changed. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. More demand would mean more production and lower unit price costs. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. 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. This figure is even higher for millennials (73%) and Generation Z (72%). Consumers' demand for sustainable products is increasing. This button displays the currently selected search type. On a global scale, the percentage of consumers willing to pay a premium for. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. Brands that establish a reputation for social responsibility and environmental stewardship among todays youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too, says Farraj. 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. Image:Caleb Jones/Unsplash. For example, one study found Spanish consumers were willing to pay 22-37 per cent more for green products, but Japanese consumers were only willing to pay 8 per cent to 22 per cent more for . Reports, such as Nielsen Insights , suggest the majority (73 percent) of people would change their consumption habits to reduce their impact on the environment, and almost half . 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. 9. So when it comes to purchasing, they are doing their homework. Our eBook "What ESG means to you and your consumers in 2022" is designed to help Original survey question: How much of a premium are you willing to pay for green consumption (i.e. Rudominers lifelong passion is using communication to foster social change. In 1998, the Council of the European Union passed a directive that setrules for the protection of farmed animals -- a directive updated in 2009 that led tofar more ethical treatment of animals there. But brands can nudge consumers towards more eco-friendly products. 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%. Access to this and all other statistics on 80,000 topics from, Show sources information www.simon-kucher.com, Internet Explorer presents a security risk. While 66 percent of global consumers are willing to pay. Paying attention to public opinion on specific brands in the news or on social media. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. 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 . The firm has over 1,400 employees in 41 offices worldwide. In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. While the survey respondents were answering questions . Consumers are voting with their dollars against unsustainable brands. 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. e-mail: rachel.pope@simon-kucher.com As a result, many consumers have adopted more sustainable behaviors. 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. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Seventh Generation, Sundial Brands, and Pukka Herbs. Please do not hesitate to contact me. 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 . Michele Koch Show publisher information Businesses must adapt to the times as consumers . 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. It can be done. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. January 18, 2023. 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. Many sustainable trends in new markets start with beauty and personal care. 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. 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. Third-party validation helps certify progress in the eyes of consumers, and the process of carbon offsetting which is easy to measure and communicate helps create tangible benchmarks. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. not how pretty the blush is. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. As economists say, as price lowers, our willingness and ability to buy an item increase. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. Consumers from 60 countries were surveyed for this report. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. 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). 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).. Can changing your mindset change everything? Our analysis looked at products on-pack communication about their sustainability. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. The study also found a large degree of mistrust about companies environmental claims. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. 5 Ways to Connect Wireless Headphones to TV. 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. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. 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. A weekly update of the most important issues driving the global agenda. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. Statista. lire aussi : Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. 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