But nearly 60% are unwilling to pay more money for that eco-friendly product. Defending and preserving our planet is not only the right thing to do, its good business. It can be done. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. Businesses that under-appreciate the need for CSR do so at their peril. This behaviour isn't just limited to the wealthy in big economies. The survey comes at a time when the chemical industry is trying to find ways to address growing concerns about plastic waste, whether it is through . Businesses must adapt to the times as consumers . Younger shoppers are the most willing to. how much more are you willing to pay compared to regular goods) when purchasing the following categories? In, Deloitte. 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. www.simon-kucher.com, Internet Explorer presents a security risk. What is the World Economic Forum doing about the circular economy? "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. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. What is the Green List and how can it help protect the worlds natural wonders? Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. You need at least a Starter Account to use this feature. So while not all consumers will pay more for green climate-friendly products despite the best of intentions, we can slowly nudge them to make better choices for the planet. Surface Studio vs iMac - Which Should You Pick? 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. NYU Sterns Center for Sustainable Business just completed extensive research into U.S. consumers actual purchasing of consumer packaged goods (CPG), using data contributed by IRI, and found that 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. 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 . 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. statistic alerts) please log in with your personal account. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. About three in four Millennials (74 percent) and Generation Z consumers (72 percent) are willing to pay more for sustainable products and services, according to The Nielsen Company. To trust a company statement, 45% of Americans say they need a third-party validating source. 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 . By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. The study surveyed 10,281 consumers across 17 countries: USA (N=1,062), Germany (N=1,022), Denmark (N=771), Sweden (N=757), Brazil (N=539), China (N=516), Japan (N=516), Spain (N=515), Switzerland (N=514), UK (N=513), Australia (N=510), Austria (N=510), France (N=510), the Netherlands (N=510), Norway (N=506), Italy (N=506), UAE (N=504), including representative quotas set for age, gender, living area, education level, employment status & income level. All Rights Reserved. You need a Statista Account for unlimited access. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. GreenPrint 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. Are consumers willing to pay more for these? Consumersparticularly Millennialsincreasingly say they want brands that embrace purpose and sustainability. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. 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). 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. 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). And how can we encourage people to make good choices? Chart. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". More than half of Europeans (51%) said they are willing to pay more for climate friendly food. 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. Academic research has consistently identified this gap between purchase intentions and behaviours. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. zharris@prosek.com, Internet Explorer presents a security risk. Georgetown University School of Continuing Studies. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. , Feb 8, 2023. 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. 1901), Lexpertise universitaire, lexigence journalistique. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. 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 Consumers across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. To ensure consistent and accurate representation of the U.S. general population 18 years of age and older, data was weighted by the following variables: sex, age, geographic region, race/ethnicity, and education. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. The Nielsen Global Survey of Corporate Social Responsibility and Sustainability was conducted between Feb. 23-March 13, 2015, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. In 2014, less than 30 . Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. Or to remain unmoved by those facing increasingly poor living conditions across the globe. Nielsen combines sustainability into free-from, clean, simple, sustainable and . Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. 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. This study investigated consumers' Willingness To Pay (WTP) for dry semolina pasta produced with raw materials from more diversified agricultural systems and which factors influence this . We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. Climate-friendly defines products that reduce damage specifically to the climate. The firm has over 1,400 employees in 41 offices worldwide. Others are working for or supporting organizations dedicated to social and environmental change. 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. . 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. This likely depressed the growth numbers, as many brands have become more sustainable over time. 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. I dream of a world in which all factory farms are destroyed. 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. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. A survey of 51 retail senior-level . Professor of Marketing and Consumer Behaviour, Queensland University of Technology. We see the impact of similar sentiment around shower gel, a category where naturals own 10.3% of the value share, and the overall category saw sales decline 0.8%. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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. Complete study findings are available upon request, including country splits. 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 2237% more for green products, but Japanese consumers were only willing to pay 822% more for green 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. Im seeing quite a few climate-friendly products at the supermarket. All rights reserved. Overall, consumers identified . 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. This is especially true for Millennials. Are you making an effort to reach these socially conscious young people? What do these findings mean for corporate managers and investors? Millennials want to know what companies are doing to make the world a better place. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. Our analysis looked at products on-pack communication about their sustainability. This sum will continue to grow exponentially as more Millennials reach peak buying power. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. In 2015, brands who showed a commitment to sustainability saw sales grow more than 4% globally. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. Brands can bring their CSR efforts to life through authentic storytelling. Im seeing quite a few climate-friendly products at the supermarket recent survey, 73 % of Boomers ages... % of Gen Zers are willing to open their wallets for sustainable offerings for sustainable products numbers. The circular economy Millennials reach peak buying power for 170 industries from countries! 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