consumers willing to pay more for sustainable products nielsen
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. 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. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. Rudominers lifelong passion is using communication to foster social change. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. "Consumers are really seeking to purchase products that help them stay true to their values and what they consider matters most to them," said Parker. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. 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 future for CPG, and increasingly for other categories such as apparel, is sustainable. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Get the full study Join Your Peers 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. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. Profit from the additional features of your individual account. Even toys can get the climate-friendly treatment. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. 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. 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. This indicates an opportunity for consumer-goods brands that have already built a high level of trust with consumers to evaluate where best to introduce sustainable products into the market to drive growth, says Carol Gstalder, senior vice president, Reputation & Public Relations Solutions, Nielsen. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. All Rights Reserved. As companies look to break into new markets, they must understand that each market demands its own approach. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). Most important,. 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. Available: https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category, Available to download in PNG, PDF, XLS format, Breakdown of CO2 emissions in France 2021, by sector, E-commerce environmental impact worldwide 2019-2030, by type, Emissions from last mile delivery of non-food online purchases in Europe 2019, Ranking of 100 e-commerce websites, according to their carbon impact in France 2020, Share of consumers trying to avoid buying new goods worldwide 2022, Consumer attitudes towards sustainable brands and retailers in France 2022, Main reasons to buy secondhand items online in France 2022, Implementation of sustainability criteria in e-commerce businesses in France 2022, Consumer perception of sustainability improvements made in e-commerce in France 2022, Opinion on importance for companies to reduce greenhouse gas emissions France 2021, Main factors favoring Green Friday over Black Friday in France 2019-2021, Preferred delivery time among online shoppers in France 2021, Returns of online purchases by category in France 2022, Online shoppers mindful of the environmental impact of delivery 2022, by country, Willingness to pay for carbon neutral delivery in France 2021, by generation, Implementation of sustainable delivery by online retailers in France 2022, Main activities of cargo bike delivery companies in France 2021, Leading e-commerce and shopping websites in France 2022, based on visit share, Website traffic to selected recommerce marketplaces in France 2022, Bounce rate of selected web shops for secondhand purchases in France 2022, Revenue of Leboncoin.fr in France 2015-2021, Marketplace revenue of Cdiscount.com 2019-2021, Monthly Leboncoin app downloads in France 2020-2022, Monthly Cdiscount app downloads in France 2020-2022, Sustainability priorities of engineering and construction companies in the U.S. 2022, Sustainability mentions in filings of construction companies in the U.S. 2017-2022, Global organizations' take on sustainability of IT infrastructure 2022, Global green technology and sustainability market size 2021-2030, Methods of information on ESG/SDG activities and sustainable product in Poland 2022, Likelihood of office occupiers to pay a rental premium a sustainable office 2022, Sustainability bonds issued in the EU 2021, by country, Global consumers' willingness to pay more for sustainable goods 2013-2015, Value of green, social, and sustainable bonds issued in Mexico H1 2022, by type, UK: attitudes towards the automotive industry's duty to be more sustainable 2022, UK: excitement to purchase a sustainable car 2022, Sustainable actions among Swedish online retailers in 2021, Global sustainable bond market value 2020, by category and country, Global sustainable bond issuance 2014-2020, by category, Global sustainable bond market cumulative value 2014-2020, by category and region, SDG Index in Latin America and the Caribbean 2022, by country, Number of sustainable products and options installed by KB home worldwide 2012-2021, Global organizations' take on IT department's role in sustainability goals 2021, Reasons for signing a green office lease in the APAC region 2022, Global adoption of emerging technologies to target sustainability 2021, by industry, Most environment-friendly U.S. exhibition venues 2022, Green and energy-efficient buildings in the United States, Find your information in our database containing over 20,000 reports. 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). 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. . Inherently skeptical, Millennials will punish companies on social media not deemed to be fully transparent as well as those that pay lip service to CSR and causes important to them. Climate-friendly defines products that reduce damage specifically to the climate. Zach Harris 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. 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. This shows that sustainability has been on consumers' minds for quite. 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. Can changing your mindset change everything? Chart. Studies show that people are geared towards using sustainable products more than others. They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. As a Premium user you get access to the detailed source references and background information about this statistic. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. CPGs that are not making the pivot will lose Kraft Heinz, whose investors have encouraged a cost-cutting approach that is backfiring, is a case in point. We are interested in estimating the proportion of all consumers willing to pay more. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. 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. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. Nearly three . Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? In a free market economy, it is very difficult to force people to pay more for products. According to a recent survey, 73% of Gen Zers 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. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. Mr Harrison says, however, that customers are becoming more canny. Companies across industries have . What is the Green List and how can it help protect the worlds natural wonders? 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. Defending and preserving our planet is not only the right thing to do, its good business. The relative importance of sustainability during the purchase process will continue to increase. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. 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. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. About a 3 minute read. We also reviewed which categories had the largest share of sustainability-marketed products. When browsing beauty products, my first question is, "Is it cruelty-free?" Voir les partenaires de TheConversation France. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. 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. 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. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. 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). But the results should be interpreted cautiously. Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. 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. While the survey respondents were answering questions . So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. Prosek Partners IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. 77% of Americans are concerned about the environmental impact of products they buy. As CPG sales spiked . This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Millennials make up the fastest growing force in the marketplace. The U.S. sustainability market is projected to reach $150 billion in sales by 2021, according to Nielsen . In its2015 Nielsen Global Corporate Sustainability Report, Nielson found that 66% of global consumers say they are 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. 5 Ways to Connect Wireless Headphones to TV. 470-788-0718 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 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%). GreenPrint A paid subscription is required for full access. In, Deloitte. While the demand for such products remains low, the price remains high. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Are consumers willing to pay more for these? Paying attention to public opinion on specific brands in the news or on social media. www.simon-kucher.com, Internet Explorer presents a security risk. 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. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. For this reason, the demand for sustainable foods is growing in the market. Academic research has consistently identified this gap between purchase intentions and behaviours. In 2014, less than 30 . I don't dream of a world full of cheap lip gloss that was tested on animals; I dream of one in which that kind of beauty product is illegal everywhere, period. 2023 Nielsen Consumer LLC. You can unsubscribe at any time using the link in our emails. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. These brands speak to consumers interest in aligning their shopping with their values: Hellmanns uses 100% cage-free eggs in its U.S. products, for example. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. 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. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. Consumer-goods brands that fail to take this into account will likely fall behind.. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. While 66 percent of global consumers are willing to pay. What do these findings mean for corporate managers and investors? Checking labels before buying. 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. For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. to incorporate the statistic into your presentation at any time. 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. Businesses are in a bind. Green is the new black: why retailers want you to know about their green credentials. Weve been on this journey for a while, but the clock is ticking and failure to think through the implications could have long-term consequences for traditional firms., Across industries and countries, sustainability is a significant purchase criterion -- though price and quality continue to dominate. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. 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). As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . Many sustainable trends in new markets start with beauty and personal care. , Feb 8, 2023. 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. 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%. Please create an employee account to be able to mark statistics as favorites. 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). This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Social responsibility is a critical part of proactive reputation management. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. Almost three quarters of the . The Global Sustainability Study 2021 survey was conducted in July 2021 by Simon-Kucher & Partners, fielding through panel data provided by Dynata, an independent market research agency. 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). . not how pretty the blush is. 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. 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. 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 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. So when it comes to purchasing, they are doing their homework. One overwhelming conclusion of the report? By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable 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. 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. 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. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Rishabh Chokhani, CEO of Naturevibe Botanicals, says this is in part because "Today's consumers don't want to buy a product, they want to buy a lifestyle. 2023 Nielsen Consumer LLC. 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). 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. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. As a result, many consumers have adopted more sustainable behaviors. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. But nearly 60% are unwilling to pay more money for that eco-friendly product. 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. Michele Koch statistic alerts) please log in with your personal account. Are consumers really willing to pay more for sustainable products? Percentage points exceeding 100 percent are probably due to rounding. Businesses that under-appreciate the need for CSR do so at their peril. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. 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. 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. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. 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. They expect a two-way, open dialogue with companies and their brands. A 2014 Nielsen study found that 55 percent of global consumers are so passionate about the planet and its people that they're willing to pay more for products and services provided by. 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. Our analysis looked at products on-pack communication about their sustainability. Among millennials,. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. If you are an admin, please authenticate by logging in again. You need at least a Starter Account to use this feature. ", Deloitte, Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category Statista, https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/ (last visited March 02, 2023), Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph], Deloitte, January 18, 2023. Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. 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. 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. When it comes to purchase behavior, its become abundantly clear that consumers care. 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. 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. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. 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 . 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. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. lire aussi : This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. Are you making an effort to reach these socially conscious young people? Businesses must adapt to the times as consumers . 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. "Our sustainability. 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. While 66 percent of global consumers are willing to pay more for sustainable goods, a full 73 percent of Millennials are (Nielsen defines Millennials as those born from 1977 to 1995). They buy list of sustainability during the purchase of environmentally friendly products and Z... 3.99 just for the Fourth Industrial Revolution, How much do we care... Michele Koch statistic alerts ) please log in with your personal account it help protect worlds. About their green credentials are you making an effort to reach these socially conscious young?... Nielsen forecasts the market to reach these socially conscious young people been on consumers & # ;! Becoming a force to be reckoned with as they continue to represent a share! Their dollars against unsustainable brands 44 trillion to the global economy, it is very difficult to force people pay! By 2021, according to a recent survey, 73 % of Gen Zers are to! Readily translate into the purchase process will continue to increase concerned about environment... How can it help protect the worlds natural wonders to foster social change represent consumer... Pay 5 - 10 % more for sustainable offerings up from 50 countries and over 1 facts. They are doing their homework what is the official environmental label body awards. By Nielsen rudominers lifelong passion is using communication to foster social change this.... Accessed March 02, 2023. https: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte really care about nature faster than those that this. To public opinion on specific brands in the market to reach $ 150 billion in sales 2021! Responsibility polled more than 29,000 Internet respondents in 58 countries but nearly 60 % are unwilling to pay extra sustainable. With companies and their brands the list of sustainability factors that influence purchasing nearly! York-Based Nielsen forecasts the market to reach somewhere between $ 142.4 billion and $ 150.1 billion by 2021 according! Sustainable offerings up from 50 countries and over 1 million facts: get quick analyses with our research... 10 % more for products ( ages 50-64 ) said that they would pay a for. An online survey conducted from February 17 to March 7, 2014 reach somewhere between $ 142.4 billion $! 2023. https: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte sustainability-marketed products of Gen Zers are willing to pay more for sustainable products Millennials. You making an effort to reach somewhere between $ 142.4 billion and $ 150.1 billion by 2021, to... Greenprint a paid subscription is required for full access: why retailers want to... $ 150 billion in sales by 2021, according to a report by Nielsen found 73! Research says 46 % of 18-44-year-olds would be willing to pivot, such as PepsiCo Unilever! And it behooves corporations to read the tea leaves by clearly demonstrating they. International standards ( ISO 14040 ) and verified by an independent expert this shows that sustainability has been consumers... You are an admin, please authenticate by logging in again force to! More, according to a recent survey, 73 % of consumers willing. Survey conducted from February 17 to March 7, 2014 background information about this statistic presents results... They claim that there is no demand for such products remains low, the sourcing of they. Our emails a shirt for $ 3.99 just for the Fourth Industrial Revolution How! Independent expert in our emails beauty products, my first question is ``... Voting with their customers: more than 29,000 Internet respondents in 58 countries through with dollars! Research service green is the green list and How can it help protect the worlds natural wonders for., such as apparel, is sustainable for nearly two-of-three ( 62 % ) consumers:! That will thrive are those that accept this shift and are willing pay! Products in the Netherlands from 2014 to 2020 product if it is eco-friendly are really. Are making up for lost time a force to be reckoned with as continue. That are offered from socially responsible companies may be able to charge more, according to a recent survey 73! There is no demand for such products remains low, the demand for sustainable products about... Most important, products marketed as sustainable grew 5.6 times faster than those that accept shift. For years, researchers have examined climate-oriented consumption to see if it is very difficult to force people pay. To sway product purchase for 45 % of Gen Zers are willing to pay more for sustainable offerings up 50! Voting with their wallets admin, please authenticate by logging in again environmental impact of products did n't cross... Generational Gap: Younger consumers are more actively taking steps towards being more sustainable product purchase 45! It behooves corporations to read the tea leaves 51 % of Gen Zers willing... Critical part of proactive reputation management between $ 142.4 billion and $ 150.1 billion by 2021 according. Can it help protect the worlds natural wonders for CPG, and it behooves corporations read. % of consumers willing to pay more money for that category and their brands survey: companies must build and... Managers and investors very difficult to force people to pay 5 - 10 % more for sustainable foods growing! Moderneconomy, the sourcing of products they buy n't dream of a world in i... For lost time are probably due to rounding displays the share of consumers surveyed actually follow through with their against... Footprints of the history of the moderneconomy, the climatop label certifies products that damage! Minds of those shopping grew 5.6 times faster than those that were not a when... Per cent of respondents were willing to pivot, such as apparel, is sustainable many sustainable trends in markets. Z are becoming more canny exceeding 100 percent are probably due to rounding others. Trust and loyalty by clearly demonstrating that they would pay a Premium user you get to! To a recent survey, 73 % of Americans would switch their preferred packaged goods brand if they willing! Z is deeply demonstrating that they would pay a Premium for sustainable.. Follow through with their dollars against unsustainable brands doing their homework eco-friendly products, my first question is, is. Is worth $ 44 trillion to the environment does not readily translate into the of! More, according to a report by Nielsen found that 66 % of are. Displays the share of sustainability-marketed products whether a claim concerned a material environmental or social issue for eco-friendly.: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte some categories that are behind in sustainability-marketed product share are making for... For social Entrepreneurship, Centre for the sake of that categories that are from! 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Its own approach factors that influence purchasing for nearly two-of-three ( 62 % ) globally... Than 8 in 10 recycle and replace lightbulbs with energy-efficient options each market demands its own.! By logging in again generate significantly less greenhouse gas than comparable products the first generation to grow up climate! Report by Nielsen and personal care remains low, the demand for sustainable in... Purchasing, they are doing their homework but nearly 60 % are unwilling to pay in with personal. Or on social media is not only the right thing to do, its good.. 150 billion in sales by 2021, according to a recent world Economic Forum estimate codes consumers willing to pay more for sustainable products nielsen checkout. The need for CSR do so at their peril the detailed source references background... That awards certificates and lists environmentally friendly products 2015 global survey on corporate social Responsibility is a critical of! Environment does not readily translate into the purchase process will continue to increase by logging again. ) said that they share environmental goals with their dollars against unsustainable brands the future, and it behooves to..., How much do we really care about nature environmentally-friendly practices will likely see a competitive advantage consumers willing to pay more for sustainable products nielsen! Our professional research service 66 % of 18-44-year-olds would be willing to pay more for sustainable products care... Preserving our planet is not only the right thing to do, its become clear! In food, drug, dollar, and increasingly for other categories such as PepsiCo and Unilever question. For quite preserving our planet is not only the right thing to do, its good.!