A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Defending and preserving our planet is not only the right thing to do, its good business. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. The bottom line is that the corporate world cannot ignore the demands and expectations of Millennials, who are devout in their desire to associate with companies aligned with their values. Consumers from 60 countries were surveyed for this report. Consumers across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. GreenPrint Our eBook "What ESG means to you and your consumers in 2022" is designed to help They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. 315-409-9435 But brands can nudge consumers towards more eco-friendly products. 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 the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. In a free market economy, it is very difficult to force people to pay more for products. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. 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 . 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. "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 offerings--almost three-out-of-four respondents," says Nielsen. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. 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. Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. There are several reasons for this. 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%. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Are consumers really willing to pay more for sustainable products? statistic alerts) please log in with your personal account. Studies show that people are geared towards using sustainable products more than others. Statista. As economists say, as price lowers, our willingness and ability to buy an item increase. how much more are you willing to pay compared to regular goods) when purchasing the following categories? Nearly three . This shows that sustainability has been on consumers' minds for quite. 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. 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. 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. Sustainability-marketed products are growing quickly in almost all CPG categories. Feb 28, 2023. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Companies that are able to navigate the business of sustainability will be best positioned for future success.. She's vocal about the fact that it costs a lot more than shirts from a company like H&M specifically because she only uses sustainable goods and ethical practices when it comes to the workers. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . This is the result of a representative survey that we commissioned from INNOFACT. 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. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. 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 . Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. An international study of 20,000 customers by grocery brand giant Unilever identified one in three (33%) people were choosing to buy from brands they believe are doing environmental good. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. 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. In 2018, that number had risen to about 85% . And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. This button displays the currently selected search type. As companies look to break into new markets, they must understand that each market demands its own approach. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. She's a strong young feminist poet, an inspiration, and I trust her product because she was open about how she sourced the materials for it. You can only download this statistic as a Premium user. 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. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. That across the board, consumers are willing to pay extra for one thing: sustainability. I dream of a world in which all factory farms are destroyed. What do these findings mean for corporate managers and investors? Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. crivez un article et rejoignez une communaut de plus de 160 400 universitaires et chercheurs de 4 572 institutions. 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. 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. Seventh Generation, Sundial Brands, and Pukka Herbs. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. 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. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. Green consumption includes more environmentally friendly raw materials, packaging and production methods, lower carbon emissions during transportation and use, and better protection for people involved in production and trade. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. Mr Harrison says, however, that customers are becoming more canny. 75% of Millennials are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. 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. Products with a sustainability claim have continued to drive growth amid the pandemic, according to a new report from IRI and the NYU Stern Center for Sustainable Business. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. It can be done. The survey also showed that consumers in Southeast Asia are the most willing . Are you making an effort to reach these socially conscious young people? Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. 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. 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. Currently, you are using a shared account. to incorporate the statistic into your presentation at any time. On a global scale, the percentage of consumers willing to pay a premium for. (January 18, 2023). 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).. 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. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. 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. This isn't a pipe dream. You need a Statista Account for unlimited access. While 66 percent of global consumers are willing to pay. Sixty-six percent of global respondents say they are willing to pay more for sustainable goods, up from 55% in 2014 (and 50% in 2013). Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. Chart. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. But nearly 60% are unwilling to pay more money for that eco-friendly product.. 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. Among millennials,. Many sustainable trends in new markets start with beauty and personal care. 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 . Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. ", 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. Get full access to all features within our Business Solutions. They expect a two-way, open dialogue with companies and their 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. 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. Overall, consumers identified . 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. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. In China, 41% of consumers say that they want eco-friendly products. Social responsibility is a critical part of proactive reputation management. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. The first-ever edition of the company's Business of Sustainability Index found that nearly two-thirds (64%) of Americans are willing to pay more for sustainable products but most (74%). : (617) 231-4551 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 . When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. 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. According to a June 2014 Nielsen study , 55% of global online consumers "are willing to pay more for products and services from companies that are committed to positive social and environmental impact." In fact, as early as 1992, the European Commission established the EU Ecolabel , a Europe-wide voluntary environmental labeling scheme that . But nearly 60% are unwilling to pay more money for that eco-friendly product. 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. Deloitte. not how pretty the blush is. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." And how can we encourage people to make good choices? The relative importance of sustainability during the purchase process will continue to increase. 2023 Nielsen Consumer LLC. From there, it becomes more specific and fragmented. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. Create a free account and access your personalized content collection with our latest publications and analyses. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. Consumers' demand for sustainable products is increasing. 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. 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