Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. Good Environmental Choice Australia is a similar organisation. statistic alerts) please log in with your personal account. In, Deloitte. It can be used to help people improve their thinking and decisions. 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. Droits d'auteur 20102023, The Conversation France (assoc. Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. Saving biodiversity: why our mental and physical health depends on it. Currently, you are using a shared account. Image:Caleb Jones/Unsplash. The rise in the percentage of respondents under 20, also known as Generation Z, who are willing to pay more was equally strongfrom 55% of total respondents in 2014 to 72% in 2015. Im seeing quite a few climate-friendly products at the supermarket. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. 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. As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . 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). 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. 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. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Rudominers lifelong passion is using communication to foster social change. 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. Please do not hesitate to contact me. 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). In China, 41% of consumers say that they want eco-friendly products. A weekly update of the most important issues driving the global agenda. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. 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. In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. 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. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. Gary Mortimer ne travaille pas, ne conseille pas, ne possde pas de parts, ne reoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a dclar aucune autre affiliation que son organisme de recherche. Wed suggest they follow the data. The survey is conducted among 48 percent of female and 52 percent male respondents. Brands can bring their CSR efforts to life through authentic storytelling. What do these findings mean for corporate managers and investors? 315-409-9435 All rights reserved. Others are working for or supporting organizations dedicated to social and environmental change. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. "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. The Global Sustainability Study 2021 survey was conducted in July 2021 by Simon-Kucher & Partners, fielding through panel data provided by Dynata, an independent market research agency. What is the World Economic Forum doing about the circular economy? According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. Products must meet similar standards (ISO 14020 and ISO 14024). 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. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. A paid subscription is required for full access. In 2015, brands who showed a commitment to sustainability saw sales grow more than 4% globally. 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. Businesses are in a bind. 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. 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. Businesses must adapt to the times as consumers are voting with their wallets and Millennials, in particular, are demanding that companies put their money where their mouth is. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. www.simon-kucher.com, Internet Explorer presents a security risk. Chart. Percentage points exceeding 100 percent are probably due to rounding. Mr Harrison says, however, that customers are becoming more canny. Georgetown University School of Continuing Studies. 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). The future for CPG, and increasingly for other categories such as apparel, is sustainable. Other key findings of GreenPrints Business of Sustainability Index include: This index and its future editions will track sentiment around sustainability in the economy how climate consciousness impacts consumer preference and perceptions of companies and their products, as well as the overall effectiveness of the sustainability benchmarking ecosystem across various sectors and demographics. Register in seconds and access exclusive features. Get full access to all features within our Business Solutions. Nielsen combines sustainability into free-from, clean, simple, sustainable and . lire aussi : 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. 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 2023 Nielsen Consumer LLC. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Create a free account and access your personalized content collection with our latest publications and analyses. , Feb 8, 2023. 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. In a free market economy, it is very difficult to force people to pay more for products. For this group, personal values are more important than personal benefits, such as cost or convenience. Can changing your mindset change everything? While attitudes towards sustainability vary between generations, they also vary across countries -- when looking at consumers who have either made significant changes to their purchasing behavior or completely changed their way of living to be more sustainable, Austria leads the way (42 percent), followed by Italy (41 percent), Spain (35 percent) and Germany (34 percent). In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. 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. It's not just a morally good idea, either; it's lucrative. '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. 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. About a 3 minute read. A survey of 51 retail senior-level . So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. Companies that are able to navigate the business of sustainability will be best positioned for future success.. 74% would switch gasoline brands in the same situation. Its hard to ignore the siren call to protect the planet. Looking at web sites for information on business and manufacturing practices. tel. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. 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. 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." We are interested in estimating the proportion of all consumers willing to pay more. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. The latest IAG New Zealand Ipsos poll found almost four out of five people (79%) say climate change is an important issue for them, the same number as last years poll. 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. 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. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Profit from the additional features of your individual account. 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 . Among millennials,. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. A new report reveals all. Almost three quarters of the . But nearly 60% are unwilling to pay more money for that eco-friendly product. 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. 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 2015, Nielsen polled 30,000 consumers in 60 countries around the world. Traditional advertising will not work with Millennials. So when it comes to purchasing, they are doing their homework. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and "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. 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%. BOSTON--(BUSINESS WIRE)--With COP26, the 2021 United Nations Climate Change Conference, just weeks away, a major study of more than 10,000 people across 17 countries shows that sustainability is becoming increasingly important in consumers purchasing decisions, especially as consumers see themselves, along with for profit companies, as the primary catalysts for change. Green is the new black: why retailers want you to know about their green credentials. Most important,. Our own 2019 report, " The State of Consumer Spending: Gen Z . 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. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. As companies look to break into new markets, they must understand that each market demands its own approach. 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. 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. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. 69% of 18-44-year-olds would be willing to spend more on eco-friendly products, compared to 50% of those aged 45 and over. ", 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. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. Paying attention to public opinion on specific brands in the news or on social media. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. This is especially true for Millennials. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. 1901), Lexpertise universitaire, lexigence journalistique. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. From there, it becomes more specific and fragmented. We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. A willingness to pay more for "sustainable" products. 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 . Seventh Generation, Sundial Brands, and Pukka Herbs. 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. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. 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. Younger shoppers are the most willing to. It can be done. Minds can be changed, laws can be changed, and companies can be changed. To use individual functions (e.g., mark statistics as favourites, set 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. Michele Koch 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%. This sum will continue to grow exponentially as more Millennials reach peak buying power. Sustainability-marketed products are growing quickly in almost all CPG categories. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. how much more are you willing to pay compared to regular goods) when purchasing the following categories? The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. This behaviour isn't just limited to the wealthy in big economies. Get the full study Join Your Peers 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. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). e-mail: rachel.pope@simon-kucher.com 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. 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. Products that we deemed sustainability-marketed in 2018 were considered sustainability-marketed in 2013 too, as we were unable to examine 2013 packaging for all products. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. By 2021, consumers are expected to spend $150 billion on sustainable goods. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. 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. As a result, many consumers have adopted more sustainable behaviors. 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. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. [Online]. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. As economists say, as price lowers, our willingness and ability to buy an item increase. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. 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. 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. 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. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. 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. 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. While the survey respondents were answering questions . I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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. Prosek Partners While the demand for such products remains low, the price remains high. All Rights Reserved. Are you making an effort to reach these socially conscious young people? Are you interested in testing our business solutions? 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%). 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. Simple economies of scale also impact on price. 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. Energy-Efficient options 30,000 consumers in 60 countries around the World Economic Forum doing about the circular?. 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