That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. This behaviour isn't just limited to the wealthy in big economies. For this group, personal values are more important than personal benefits, such as cost or convenience. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. Consumer-goods brands that fail to take this into account will likely fall behind.. 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 . 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%). 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. The study also found a large degree of mistrust about companies environmental claims. That across the board, consumers are willing to pay extra for one thing: sustainability. While 66 percent of global consumers are willing to pay. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. You need at least a Starter Account to use this feature. 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 market research firm Nielsen, just 22% of the world's consumers were willing to pay more for an eco-friendly product in 2011, despite the fact 83% thought it was important. Brands can bring their CSR efforts to life through authentic storytelling. Zach Harris And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. Learn more about how Statista can support your business. GreenPrint Sustainability-marketed products are growing quickly in almost all CPG categories. 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. 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. All these terms are used in labelling to make us feel good if we buy products claimed to minimise harm to the planet and the environment. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. This sum will continue to grow exponentially as more Millennials reach peak buying power. In the US, this number is just over the global average at 61 percent. 66% of survey respondents are willing to pay more for sustainable goods, up from 55% in 2014, and 50% in 2013 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%. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. Overall, consumers identified . 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. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 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%. Rudominers lifelong passion is using communication to foster social change. Those earning $20,000 or less are actually 5% more willing than those with incomes greater than $50,000 to pay more for products and services that come from companies who are committed to positive social and environmental impact (68% vs. 63%). In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. It's not just a morally good idea, either; it's lucrative. Our own 2019 report, " The State of Consumer Spending: Gen Z . Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. This is the result of a representative survey that we commissioned from INNOFACT. Yes, meat will cost more and won't as widely available, but farm animalsshould all have real lives and humane deaths (and stop emitting so much methane into the atmosphere). 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. Nearly three . So when it comes to purchasing, they are doing their homework. 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. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. Globally, 85 percent of people indicate that they have shifted their purchase behavior towards being more sustainable in the past five years -- however, we observe meaningful generational differences in attitude. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. In, Deloitte. Companies across industries have . 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. michele@greenprintcorp.com In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. When looking at food items like coffee, I want to know first that it's Fair Trade. Simple economies of scale also impact on price. For additional market-level insights, read or Unpacking the Sustainability Landscape report. Mr Harrison says, however, that customers are becoming more canny. In a study of 30,000 consumers across 60 countries, Nielsen found that nearly 2/3 of consumers globally are willing to pay more for sustainable goods and that is on the rise. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. 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. 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. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. Its hard to ignore the siren call to protect the planet. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. 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 . But brands can nudge consumers towards more eco-friendly products. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . In 2014, less than 30 . 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. We are interested in estimating the proportion of all consumers willing to pay more. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. 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). Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. But nearly 60% are unwilling to pay more money for that eco-friendly product. This is especially true for Millennials. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. This likely depressed the growth numbers, as many brands have become more sustainable over time. Nielsen's 2014 Global Survey on Corporate Social Responsibility, released Tuesday, shows that 55 percent of global online consumers across 60 countries are willing to pay more for products and services from companies that are committed to positive social and environmental impact. Consumers' demand for sustainable products is increasing. We also reviewed which categories had the largest share of sustainability-marketed products. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. To trust a company statement, 45% of Americans say they need a third-party validating source. 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.. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." 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). 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. This button displays the currently selected search type. Others are working for or supporting organizations dedicated to social and environmental change. : (617) 231-4551 Get full access to all features within our Business Solutions. 2023 Nielsen Consumer LLC. In fact, the majority (73%) of global consumers say they would definitely or probably change their consumption behavior to reduce their impact on the environment. For instance, while the overall shampoo category saw declines of 3.4% over a year long period ending April 2018, natural shampoos, which own 11.2% of the value share, are steadily growing at 2.2%. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. 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. 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. . What is the Green List and how can it help protect the worlds natural wonders? I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. Social responsibility is a critical part of proactive reputation management. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. 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. 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. 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. 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. Access to this and all other statistics on 80,000 topics from, Show sources information Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. As soon as this statistic is updated, you will immediately be notified via e-mail. And according to Nielsen, I'm not alone in that. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. 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. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. Can changing your mindset change everything? 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. 'Global consumer-goods' brands that ignore sustainability increase reputational and business risk' Nielsen's research also found that 66 percent of consumers were willing to pay more for sustainable goods in comparison to 50 percent in 2013. If you are an admin, please authenticate by logging in again. 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). As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. I dream of a world in which all factory farms are destroyed. To use individual functions (e.g., mark statistics as favourites, set Concerned about allegations of greenwashing claiming a product is green when its not many brands are turning to organisations such as Climate Neutral, Foundation Myclimate and members of the Global Ecolabelling Network to legitimise their claims. "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. Feb 28, 2023. 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%). Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. 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 offeringsalmost three-out-of-four respondents (73%) in the latest findings, up from approximately half in 2014. Influences for many consumers for this group, personal values are more inclined to buy a product if it eco-friendly. Accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with professional... And according to a recent survey, 73 % of consumers say they are willing to pay more for! Mr Harrison says, however, that customers are becoming a force to be aggressive. 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consumers willing to pay more for sustainable products nielsen