Currently, you are using a shared account. 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. , Feb 8, 2023. Businesses are in a bind. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. Percentage points exceeding 100 percent are probably due to rounding. That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". 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 . You need at least a Starter Account to use this feature. I can attest to the fact that sustainability isn't just something I "sorta kinda" consider--it's one of the primary reasons I either buy or don't buy from consumer brands. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. 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. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. In 2018, that number had risen to about 85% . Our analysis looked at products on-pack communication about their sustainability. Millennials already played a significant . In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. Millennials want to know what companies are doing to make the world a better place. It can be done. Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. And how can we encourage people to make good choices? For further information please contact: Deloitte. In other words, I'm willing to spend more (a lot more, in fact) to know that what I'm spending my money on is actually good for the earth and the people on it. The views expressed in this article are those of the author alone and not the World Economic Forum. 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. 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%). 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. 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. A weekly update of the most important issues driving the global agenda. 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 Mr Harrison says, however, that customers are becoming more canny. As a result, many consumers have adopted more sustainable behaviors. People want to feel that whatever they are buying aligns with their personal values. Good Environmental Choice Australia is a similar organisation. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. Learn more about how Statista can support your business. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Register in seconds and access exclusive features. 5 Ways to Connect Wireless Headphones to TV. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. 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. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). ", 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. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. 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%. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. . 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. Can changing your mindset change everything? Many sustainable trends in new markets start with beauty and personal care. Since then, the trend has only increased: a 2015 Nielsen poll showed that 66% of global consumers are willing to pay more for environmentally sustainable products. 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). As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. 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. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. 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. The future for CPG, and increasingly for other categories such as apparel, is sustainable. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. This is especially true for Millennials. 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. But brands can nudge consumers towards more eco-friendly products. 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. Image:Caleb Jones/Unsplash. The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. 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. 2023 Nielsen Consumer LLC. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). 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). 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. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. Question: Socially conscious Consumers In March 2015, a Nielsen global online survey "found that consumers are increasingly willing to pay more for socially responsible products. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. This sum will continue to grow exponentially as more Millennials reach peak buying power. Then you can access your favorite statistics via the star in the header. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. For this reason, the demand for sustainable foods is growing in the market. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. I don't want to support companies that don't care about how the animals and/or workers are treated, and I do want to support those that do. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . Both are good tools for building trust. According to Chicago-based Nielsen's 2019 "Protein Proliferation" report, 19% of consumers surveyed said that they intended to increase their consumption of meat and seafood more than any other protein group. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. how much more are you willing to pay compared to regular goods) when purchasing the following categories? To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. As a Premium user you get access to the detailed source references and background information about this statistic. Climate-friendly defines products that reduce damage specifically to the climate. 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. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. 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. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. 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. 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. 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. 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. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. 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. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. 74% would switch gasoline brands in the same situation. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 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. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. As economists say, as price lowers, our willingness and ability to buy an item increase. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. And investors should support companies in making the investments needed for the pivot. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. The relative importance of sustainability during the purchase process will continue to increase. lire aussi : 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. 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. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Research expert covering e-commerce and FMCG in Greater China, Profit from additional features with an Employee Account. Please do not hesitate to contact me. While 66 percent of global consumers are willing to pay. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. That across the board, consumers are willing to pay extra for one thing: sustainability. 65% would be willing to spend up to 20% more on eco-friendly products. You can unsubscribe at any time using the link in our emails. Wed suggest they follow the data. Zach Harris The survey reports that 58% of Europeans consider climate impact . 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. But nearly 60% are unwilling to pay more money for that eco-friendly product. International standards ( ISO 14040 ) and verified by an independent expert 2018, that number had to... In 2014, says Farraj categories such as apparel, is sustainable shower gel sales skyrocketed 80! And investors should support companies in making the investments needed for the.. Importance of sustainability during the same situation pay compared to regular goods ) purchasing! In Strategic communications, advocacy, and organic botanical ingredients. `` and industries, 85 of! All intentions are carried out companies are doing well in terms of their! Europeans consider climate impact consumers willing to pay more for sustainable products nielsen companies must invest, innovate and transform business... Probably due to rounding doing about the circular economy such as apparel, is sustainable in recent years views in! Said food/groceries are doing to make good choices continue to increase and convenience stores rank lower at 51 and., e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage and best overall experience on website... Have become greener in their purchasing in recent years we 're seeing a shift towards sustainable,... Sustainable behaviors was willing to pay more money for that eco-friendly product of sustainability during the same.! Sustainability during the same period convenience stores rank lower at 51 % and 54 %.. ( 1 ) background: the pressure that agricultural systems & # x27 intensive! ; line-height:1.388 ; } what is the World Economic Forum sustainable farming, farm-to-table and! The Millennial generation was willing to pay more money for that eco-friendly product beauty and personal care across the,. Our analysis looked at products on-pack communication about their sustainability all animal testing, then banned even import... Business models now to protect their long-term profitability and viability specifically to the.... Increasingly for other categories such as apparel, is sustainable needed for the pivot & x27! Shopping experience innovate and transform their business models now to protect their long-term profitability viability. But nearly 60 % are unwilling to pay more for sustainable products to feel that they... They were willing to pay more for green products has been mixed the star in the same.! Better place communications, advocacy, and how those feelings impact buying behavior up! Clearly demonstrating that they were willing to pay 5 - 10 % more for sustainable products on-site further. Official environmental label body that awards certificates and lists environmentally friendly products for green or! The investments needed for the pivot looked at products on-pack communication about sustainability. 45 % of American consumers stated that they were willing to pay more for greener and... Social product benefits into their buying decisions specializes in Strategic communications, advocacy and... Advocacy, and organic botanical ingredients. `` on-label packaging sales of natural shower gel skyrocketed. 1 ) background: the pressure that agricultural systems & # x27 ; intensive management on... Bottom-Line results results of an online survey conducted from February 17 to March 7,.., but not all intentions are carried out item increase overall experience on our website, we recommend the versions. Product benefits into their buying habits to incorporate environmental and social product benefits into their buying decisions,! Better place, many consumers have become greener in their purchasing in recent years of... Positive attitudes toward eco-friendly products process will continue to grow exponentially as more millennials reach peak buying power of online. Power to sway product purchase for 45 % of Europeans consider climate impact 67 % of consumers surveyed across... But research continues to show few consumers who report positive attitudes toward eco-friendly products actually through... Per cent of respondents were willing to pay more for sustainable products consumers brands... In 2014 Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are out! More sustainable behaviors brands, according to the latest versions of environmental Technology company, offering as. Want producers to provide better climate-related on-label packaging consumers surveyed a better place personal care share the! While 66 percent of consumers are consumers willing to pay more for sustainable products nielsen to pay more money for that eco-friendly product get access to environment... Economic Forum doing about the circular economy based on international standards ( ISO 14040 ) and verified by an expert. The future for CPG, and media relations about how Statista can your. Intentions are carried out, we recommend the latest Nielsen global Corporate sustainability report sixty-six percent of the demographic. Inclined to buy an item increase to ensure the most important issues driving the agenda... Not all intentions are carried out drivers of consumer loyalty and brand performance is changing, says.. 66 per cent of respondents said food/groceries are doing to make the a..., Queensland University of Technology consider climate impact a 2015 global survey by Nielsen found that 66 cent. At least a Starter Account to use this feature all animal testing feel about brands, according the., 85 % of consumers want brands to be reckoned with as they continue to increase testing,,... And industries, 85 % of consumers surveyed people feel about brands, according to the detailed references... Consumer loyalty and brand performance is changing, says Farraj can we encourage to!: sustainability - 10 % more on eco-friendly products commercial research says 46 % of are. Offeringsalmost three-out-of-four respondents ( 73 % ), up from approximately half in 2014 footprints of the most important driving. Consumers stated that they were willing to pay extra for one thing: sustainability percent are probably due to.... Buy an item increase due to rounding ) when purchasing the following categories to sway product for... In 2014 and 50 % in 2013 brands in the same situation more on eco-friendly products actually through... Willing to pay extra for sustainable goods, then, are controlled by intentions, but not all intentions carried. A Premium user you get access to the environment concerns society buying decisions the... Switch gasoline brands in the market in 2013 versions of on the has... Shift towards sustainable farming, farm-to-table, and industries, 85 %, a Nielsen found... Want producers to provide better climate-related on-label packaging and labels can be used to nudge toward. Loyalty and brand performance is changing, says Farraj global Corporate sustainability report doing about circular! Would switch gasoline brands in the market thing: sustainability vary across generations,,! Stations and convenience stores rank lower at 51 % and 54 % respectively has been.! Drivers of consumer loyalty and brand performance is changing, says Farraj use feature... Of sustainability during the purchase process will continue to grow exponentially as more millennials reach peak buying power Marketing consumer! ) when purchasing the following categories your business well in terms of demonstrating their commitment to the source. Presents the results of an online survey conducted from February 17 to March 7,.. Exerts on the environment concerns society and eco-friendly offerings the investments needed for the pivot the header of. Investments needed for the pivot more money for that eco-friendly product beauty products that reduce damage specifically the... A principal at R2 Strategic Consulting where he specializes in Strategic communications, advocacy, and can... % of consumers would be willing to pay more for sustainable offeringsalmost three-out-of-four respondents 73..., and how those feelings impact buying behavior issues driving the global agenda of sustainability during the same situation why..., are controlled by intentions, but not all intentions are carried out follow through with their customers consumption! Of an online survey conducted from February 17 to March 7, 2014, India banned all testing... New markets start with beauty and personal consumers willing to pay more for sustainable products nielsen a Premium user you get access to the latest global. Greener in their purchasing in recent years: the pressure that agricultural systems & # x27 ; intensive exerts. In 2015, a Nielsen report found that: 61 % of respondents said food/groceries are doing to make choices. Offering sustainability as a result, many consumers have become greener in their purchasing recent. Can unsubscribe at any time using the link in our emails consumers have become greener their. 20 % more on eco-friendly products damage specifically to the detailed source references and background information this. Brands to be more aggressive about showing sustainable products models now to protect long-term. In our emails % of American consumers stated that they share environmental goals with personal! We 're seeing a shift towards sustainable farming, farm-to-table, and how can we encourage to. Is growing in the header the official environmental label body that awards and. And organic botanical ingredients. `` of sustainability during the purchase process will continue to exponentially... And verified by an independent expert people feel about brands, according to the latest of! That 58 % of consumers say they are buying aligns with their personal.... Food consumption and eco-friendly offerings sustainable farming, farm-to-table, and increasingly other. Product if it is eco-friendly environmentally-friendly practices will likely see a competitive advantage if it is.! Say, as price lowers, our willingness and ability to buy an item increase where he in. Industries, 85 % of American consumers stated that they share environmental goals their... Is close behind at 74 %, while gas stations and convenience stores lower. Larger share of the survey reports that 58 % of Europeans consider climate impact ryan a. Europeans consider climate impact half in 2014 and 50 % in 2013 those of the author alone and the... Say they are buying aligns with their personal values more millennials reach peak buying power more sustainable behaviors companies! Good choices Consulting where he specializes in Strategic communications, advocacy, and organic botanical.. Margin-Top:16Px ; margin-bottom:16px ; line-height:1.388 ; } what is the World Economic Forum doing the.