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%. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Access to this and all other statistics on 80,000 topics from, Show sources information Sustainability-marketed products are growing quickly in almost all CPG categories. This behaviour isn't just limited to the wealthy in big economies. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. 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. Then you can access your favorite statistics via the star in the header. not how pretty the blush is. 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. 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 Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. Im seeing quite a few climate-friendly products at the supermarket. In its 2015 Nielsen Global Corporate Sustainability Report, Nielson found that "66% of global consumers say they're willing to pay more for sustainable brands--up 55% from 2014." It also found that 73% of global Millennials are willing to pay extra for sustainable offerings--up from 50% in 2014. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. This sum will continue to grow exponentially as more Millennials reach peak buying power. While the survey respondents were answering questions . 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. 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. 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. 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. This is especially true for Millennials. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. 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. Nearly three . On average, more than a one third (34 percent) of the population is willing to pay more for sustainable products or services, and those willing to pay more would accept a 25 percent premium on average. This desire for sustainable products among Gen Z is robust. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. An online survey of more than 1,000 consumers took place in July and found 68% of respondents said they were willing to pay more for sustainable products. For example, plant-based is not a material issue in cereals, as most are plant-based; it is in detergents, where it means toxic chemicals are not used. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? Get in touch with us now. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. 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. And according to Nielsen, I'm not alone in that. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. The survey reports that 58% of Europeans consider climate impact . Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. In 2018, that number had risen to about 85% . 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. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." 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 . This conventional wisdom has been used by many brands as justification for not making their products more sustainable. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. 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. 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. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. Checking labels before buying. Younger shoppers are the most willing to. Consumers have some understanding of what makes a product sustainable but it is not necessarily a consideration when making a purchase Although the majority of consumers recognise what makes a product sustainable i.e. 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. 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. The firm has over 1,400 employees in 41 offices worldwide. COLORADO SPRINGS, US (ICIS)-Consumers are willing to pay more for sustainable products that can be recycled or reused, according to a new survey of 6,000 people worldwide by consultancy Accenture. 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. Minds can be changed, laws can be changed, and companies can be changed. In, Deloitte. We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. "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. 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. 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. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). Businesses must adapt to the times as 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. To a certain degree, products that need to have a higher degree of efficacy (such as laundry care and sanitary napkins) were more likely to have a lower share of sustainability-marketed products, perhaps because consumers are concerned about performance trade-offs. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. The U.S. sustainability market is projected to reach $150 billion in sales by 2021, according to Nielsen . 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 do these findings mean for corporate managers and investors? It can be used to help people improve their thinking and decisions. Saving biodiversity: why our mental and physical health depends on it. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. But the results should be interpreted cautiously. Nielsen combines sustainability into free-from, clean, simple, sustainable and . 28 Feb 2023 --- Sustainability factors are increasingly influencing the purchasing behavior of European consumers, according to a study published by crop nutrition company Yara International via IPSOS. 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. One overwhelming conclusion of the report? www.simon-kucher.com, Internet Explorer presents a security risk. 315-409-9435 While the demand for such products remains low, the price remains high. TV ads highlighting a companys commitment to positive social and/or environmental impact are influential in the path to purchase for 34% of global respondents. 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. 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. Chart. For years, brand managers have groused that consumers say they intend to buy sustainable products but dont actually buy them. I'm willing to pay significantly more to support quality products and human rights, and put my money where my mouth is when it comes to creatingthe world in which I want to live. As CPG sales spiked . Show publisher information The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. Products must meet similar standards (ISO 14020 and ISO 14024). Simple economies of scale also impact on price. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. Consumers expect more than ever from the brands they buy and increasingly are rewarding companies whose services and products are both good for them and good for society. Millennials already played a significant . how much more are you willing to pay compared to regular goods) when purchasing the following categories? Carbon dioxide emissions in France 1970-2021, Share of e-commerce GHG emissions worldwide 2020, by source, Leading e-commerce delivery methods used in France 2021, Average product return rates among digital shoppers in Europe 2021. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. You can only download this statistic as a Premium user. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. 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%. 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).. As a result, many consumers have adopted more sustainable behaviors. For the US, 22 percent of consumers indicate major changes to the behavior, but that number jumps to 55 percent when including those who say theyve at least made some modest changes. 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). 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. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. Many sustainable trends in new markets start with beauty and personal care. 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. statistic alerts) please log in with your personal account. Nielsen GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. Meanwhile, fish and seafood dollars and units rose 8.7% and 2.7%, respectively, from 2017 to 2019, outpacing the growth of other proteins, including legumes, nuts and seeds. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. 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. Our eBook "What ESG means to you and your consumers in 2022" is designed to help Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. Paying attention to public opinion on specific brands in the news or on social media. 2023 Nielsen Consumer LLC. Please create an employee account to be able to mark statistics as favorites. Colloquially, use of the word green is applied broadly to almost everything related to benefiting the environment, from production and transportation to architecture and even fashion. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. Given the evidence that consumer tastes are changing, an attitude of Why mess with a recipe that has worked well over the last 40 years? is the wrong one to take. Marketers, operators, and merchants need to take the following steps: one, penetrate the right segment; two, unlock what motivates that segment to spend money; and three, act on strategies that build loyalty through ongoing consumer engagement. This is especially true for Millennials. You need a Statista Account for unlimited access. 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 Studies show that people are geared towards using sustainable products more than others. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. While 66 percent of global consumers are willing to pay. 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 . Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and More than half of Europeans (51%) said they are willing to pay more for climate friendly food. Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. 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. $ 1 trillionof U.S. current consumer spending be reckoned with as they continue to a... Purchasing the following categories, I 'm not alone in that bottom-line results environmental Technology,. 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