66% of survey respondents are willing to pay more for sustainable goods, up from 55% in 2014, and 50% in 2013 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%. Toilet tissue, facial tissue, milk, yogurt, coffee, salty snacks, and bottled juices were among those with the highest share in their category (more than 18%), while laundry care, floor cleaner, and chocolate candy had less than a 5% share. 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. As a Premium user you get access to background information and details about the release of this statistic. In the US, this number is just over the global average at 61 percent. 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. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. There are several reasons for this. 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. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. 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. While the demand for such products remains low, the price remains high. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. 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. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. 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. Are you interested in testing our business solutions? Create a free account and access your personalized content collection with our latest publications and analyses. For more information, visit www.nielsen.com. In fact, almost half (41%) of consumers from around the world say that they're highly willing to pay more for products that contain all-natural or organic ingredients. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. . Nearly three . Rudominers lifelong passion is using communication to foster social change. To use individual functions (e.g., mark statistics as favourites, set In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. Both are good tools for building trust. Show publisher information Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. 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. That across the board, consumers are willing to pay extra for one thing: sustainability. So when it comes to purchasing, they are doing their homework. Then you can access your favorite statistics via the star in the header. 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 a relatively new perspective for consumers. Checking labels before buying. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. Are you making an effort to reach these socially conscious young people? Millennials make up the fastest growing force in the marketplace. 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. Most important,. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. This sum will continue to grow exponentially as more Millennials reach peak buying power. 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. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. Register in seconds and access exclusive features. From there, it becomes more specific and fragmented. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. 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. 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. 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. Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. What do these findings mean for corporate managers and investors? To ensure the most secure and best overall experience on our website, we recommend the latest versions of. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. '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. But the results should be interpreted cautiously. 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. Consumers are voting with their dollars against unsustainable brands. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. A paid subscription is required for full access. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. 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. Nielsen's 2015 Global Corporate Sustainability Report has revealed that brands showing a commitment to sustainable practices are receiving support from consumers, who are willing to pay more for . This is especially true for Millennials. A Global Corporate Sustainability Report published by Nielsen indicates that, "globally, 66 percent of consumers are willing to spend more on a product if it comes from a sustainable brand. Nudge theory is used to understand how people think, make decisions and behave. In its2015 Nielsen Global Corporate Sustainability Report, Nielson found that 66% of global consumers say they are 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. 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. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. In 2018, that number had risen to about 85% . The survey reports that 58% of Europeans consider climate impact . 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. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. crivez un article et rejoignez une communaut de plus de 160 400 universitaires et chercheurs de 4 572 institutions. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. This likely depressed the growth numbers, as many brands have become more sustainable over time. Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. 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). She's vocal about the fact that it costs a lot more than shirts from a company like H&M specifically because she only uses sustainable goods and ethical practices when it comes to the workers. Shoppers once selected grocery products based simply on price or brand, but now attributes such as climate-friendly or eco-friendly are part of the consideration. More demand would mean more production and lower unit price costs. The bottom line is that the corporate world cannot ignore the demands and expectations of Millennials, who are devout in their desire to associate with companies aligned with their values. While 66 percent of global consumers are willing to pay more for sustainable goods, a full 73 percent of Millennials are (Nielsen defines Millennials as those born from 1977 to 1995). While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. Companies have used this conventional wisdom as justification for not making their products more sustainable. (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. All these terms are used in labelling to make us feel good if we buy products claimed to minimise harm to the planet and the environment. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. Companies across industries have . 1901), Lexpertise universitaire, lexigence journalistique. The relative importance of sustainability during the purchase process will continue to increase. 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%. Defending and preserving our planet is not only the right thing to do, its good business. Consumers across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. COLORADO SPRINGS, US (ICIS)-Consumers are willing to pay more for sustainable products that can be recycled or reused, according to a new survey of 6,000 people worldwide by consultancy Accenture. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. When browsing beauty products, my first question is, "Is it cruelty-free?" 2023 Nielsen Consumer LLC. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. Wed suggest they follow the data. A willingness to pay more for "sustainable" products. Green consumption includes more environmentally friendly raw materials, packaging and production methods, lower carbon emissions during transportation and use, and better protection for people involved in production and trade. Zach Harris Georgetown University School of Continuing Studies. Original survey question: How much of a premium are you willing to pay for green consumption (i.e. 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. "Our sustainability. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. For example, one study found Spanish consumers were willing to pay 22-37 per cent more for green products, but Japanese consumers were only willing to pay 8 per cent to 22 per cent more for . We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. 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. While the survey respondents were answering questions . Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. 65% would be willing to spend up to 20% more on eco-friendly products. Our analysis looked at products on-pack communication about their sustainability. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. Call me a geek, but I do love a good research report! 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. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. You need a Statista Account for unlimited access. Climate-friendly defines products that reduce damage specifically to the climate. Please create an employee account to be able to mark statistics as favorites. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. This may give competitors of all sizes, the opportunity to build trust with the predominantly young, socially- conscious consumer looking for products that align with their values.. 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. 5 Ways to Connect Wireless Headphones to TV. All Rights Reserved. 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. It can be used to help people improve their thinking and decisions. ", 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. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. 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. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . Inherently skeptical, Millennials will punish companies on social media not deemed to be fully transparent as well as those that pay lip service to CSR and causes important to them. As a result, many consumers have adopted more sustainable behaviors. Currently, you are using a shared account. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Image:Caleb Jones/Unsplash. 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). 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. While 66 percent of global consumers are willing to pay. The survey was fielded from February 15 to February 16, 2021 among a demographically balanced nationally representative sample of 1,017 U.S. adults 18 years of age and older. 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. . Globally, willingness to pay for sustainable products or services is highest in US (42 percent), with these the US also representing the highest average premium (37 percent premium). 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. As expectations around sustainability climb, companies will face significant pressure to prove their sustainability credentials and continue to make it a central part of their value proposition., One third of consumers are willing to pay a premium for sustainable products, and companies should prepare for sustainability to become the expectation and not the exception in the future. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. In this category, catering to consumer demand for a more sustainable shampoo not only benefits the environment, but it also bolsters the bottom line of companies smart enough to give them what they want. Minds can be changed, laws can be changed, and companies can be changed. Deloitte. Businesses must adapt to the times as consumers . For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Are consumers really willing to pay more for sustainable products? As economists say, as price lowers, our willingness and ability to buy an item increase. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." A weekly update of the most important issues driving the global agenda. 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). Our eBook "What ESG means to you and your consumers in 2022" is designed to help The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. Practical, evidence-based strategies to sustainability might just pay off for consumer brands, according the!, consumers are willing to pay more for sustainable offerings shirt for $ 3.99 just for the sake of.. Exerts on the flip side, large global consumer-goods brands that ignore increase! Free account and access your favorite statistics via the star in the US, this number is just over global. That 58 % of consumers who were willing to pay sustainable grew 5.6 faster. 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That some categories that are behind in sustainability-marketed product share are making up for lost time products... Show publisher information Use Ask Statista research Service is just over the global at! Communication about their sustainability to the environment has the power to sway product for... Pay extra for sustainable offerings up from 50 countries and over 1 million facts: get analyses! As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but do! As more Millennials reach peak buying power years, researchers have examined climate-oriented consumption to see if it eco-friendly! Consulting firm specializing in TopLine power buy an item increase 2018 of products marketed as sustainable were, in,.

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