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. The relative importance of sustainability during the purchase process will continue to increase. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. The study also found a large degree of mistrust about companies environmental claims. 470-788-0718 Feb 28, 2023. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. For more information, visit www.nielsen.com. 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 . Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. 74% would switch gasoline brands in the same situation. You can unsubscribe at any time using the link in our emails. Please do not hesitate to contact me. 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. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. 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. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. Im seeing quite a few climate-friendly products at the supermarket. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. This sum will continue to grow exponentially as more Millennials reach peak buying power. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. 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. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. Traditional advertising will not work with Millennials. 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). 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. When it comes to purchase behavior, its become abundantly clear that consumers care. As a result, many consumers have adopted more sustainable behaviors. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. Academic research has consistently identified this gap between purchase intentions and behaviours. This button displays the currently selected search type. As a Premium user you get access to background information and details about the release of this statistic. Learn more about how Statista can support your business. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. 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. This figure is even higher for millennials (73%) and Generation Z (72%). '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. 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. ", 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. In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. 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. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. 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). Register in seconds and access exclusive features. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. 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. 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). This is especially true for Millennials. Our eBook "What ESG means to you and your consumers in 2022" is designed to help Consumers care about sustainabilityand back it up with their wallets, Five Ws and one H to mastering your category, Consumer Outlook 2023: The unsettled state of global consumers, Communication led by service advisors helps drive satisfaction with aftersales process in India, Do not sell or share my personal information. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. Saving biodiversity: why our mental and physical health depends on it. 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. 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%). 1901), Lexpertise universitaire, lexigence journalistique. A new report reveals all. Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. Or to remain unmoved by those facing increasingly poor living conditions across the globe. Seventh Generation, Sundial Brands, and Pukka Herbs. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Rudominers lifelong passion is using communication to foster social change. 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. e-mail: rachel.pope@simon-kucher.com What do these findings mean for corporate managers and investors? Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. 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). They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. 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. The firm has over 1,400 employees in 41 offices worldwide. And according to Nielsen, I'm not alone in that. 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. 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. 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. It's not just a morally good idea, either; it's lucrative. When browsing beauty products, my first question is, "Is it cruelty-free?" Brands can bring their CSR efforts to life through authentic storytelling. In the past year alone, 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%. Are you interested in testing our business solutions? 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 . Consumers from 60 countries were surveyed for this report. In the US, this number is just over the global average at 61 percent. For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. Get in touch with us now. 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. 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. 2023 Nielsen Consumer LLC. 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. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. Consumers are voting with their dollars against unsustainable brands. That across the board, consumers are willing to pay extra for one thing: sustainability. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). 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. 75% of millennials are willing to pay extra for sustainable products.3Coffee cups, palm oil, and single-use plastics are some recent products to face public discussion, which leaves businesses rethinking both the sustainability of their materials and processes, and the environmental impact and recyclability of their products. January 18, 2023. Nielsen 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. to incorporate the statistic into your presentation at any time. And how can we encourage people to make good choices? Currently, you are using a shared account. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. Consumer-goods brands that fail to take this into account will likely fall behind.. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. 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. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. , Feb 8, 2023. Most important,. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. 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. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Businesses are in a bind. Using multiple communication methods is important to demonstrate good deeds, such as third-party validation (news coverage), annual reports, affiliation with a respected non-profit or civic organization, employee volunteerism, advertising, or reporting actual work in the community on a web site. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. But nearly 60% are unwilling to pay more money for that eco-friendly product.. 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. "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. 'M not alone in that the link in consumers willing to pay more for sustainable products nielsen emails this sum will continue to grow exponentially as more reach! 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