This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. A new report reveals all. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. 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). 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 one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. In a study of 30,000 consumers across 60 countries, Nielsen found that nearly 2/3 of consumers globally are willing to pay more for sustainable goods and that is on the rise. 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. zharris@prosek.com, Internet Explorer presents a security risk. This figure is even higher for millennials (73%) and Generation Z (72%). They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Sustainability-marketed products are growing quickly in almost all CPG categories. Sixty-six percent of global respondents say they are willing to pay more for sustainable goods, up from 55% in 2014 (and 50% in 2013). And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. : (617) 231-4551 According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. to incorporate the statistic into your presentation at any time. In terms of how much, Gen. Z (32 percent premium) and Millennials (31 percent premium) are willing to pay more than twice as big a premium as Baby Boomers (14 percent premium) and a third more relative to Gen. X (21 percent premium). Minds can be changed, laws can be changed, and companies can be changed. Green is the new black: why retailers want you to know about their green credentials. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. Those that had no such commitment grew less than 1%. Companies that dont have sustainability as part of their core value proposition need to act now to protect against future reputational impacts and loss of market share, said Shikha Jain, author of the study and Partner at Simon-Kucher & Partners. To use individual functions (e.g., mark statistics as favourites, set Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. I don't dream of a world full of cheap lip gloss that was tested on animals; I dream of one in which that kind of beauty product is illegal everywhere, period. 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. 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 didn't even michele@greenprintcorp.com Our analysis did not include the term natural (which is ubiquitous but means nothing) or marketing claims related to social causes or charities. 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. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Weve been on this journey for a while, but the clock is ticking and failure to think through the implications could have long-term consequences for traditional firms., Across industries and countries, sustainability is a significant purchase criterion -- though price and quality continue to dominate. This is the result of a representative survey that we commissioned from INNOFACT. Michele Koch Our eBook "What ESG means to you and your consumers in 2022" is designed to help Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. 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%). 470-788-0718 Vietnamese consumers are the most socially-conscious among Southeast Asians, with 86 percent expressing their willingness to pay extra for products and services from firms which are committed to positive social and environmental impact, a new Nielsen survey found. (January 18, 2023). To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. This likely depressed the growth numbers, as many brands have become more sustainable over time. Personal values indeed. Its hard to ignore the siren call to protect the planet. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. Studies show that people are geared towards using sustainable products more than others. As a Premium user you get access to the detailed source references and background information about this statistic. (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. 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. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. The U.S. sustainability market is projected to reach $150 billion in sales by 2021, according to Nielsen . 2023 Nielsen Consumer LLC. Paying attention to public opinion on specific brands in the news or on social media. 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. Fifty percent of global consumers are willing to pay more for goods and services from companies that have implemented programs to give back to society, according to a new study from Nielsen. 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%. 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 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. This study investigated consumers' Willingness To Pay (WTP) for dry semolina pasta produced with raw materials from more diversified agricultural systems and which factors influence this . 65% would be willing to spend up to 20% more on eco-friendly products. In, Deloitte. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Overall, consumers identified . There are several reasons for this. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. 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%). In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. 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. For more information, visit www.nielsen.com. 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 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. . I'm willing to pay significantly more to support quality products and human rights, and put my money where my mouth is when it comes to creatingthe world in which I want to live. It can be used to help people improve their thinking and decisions. While the survey respondents were answering questions . Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. 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. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. If you are an admin, please authenticate by logging in again. This button displays the currently selected search type. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. 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. Attitudes towards sustainability also vary by industry when measuring its importance as a purchase criterion, from 74 percent in Energy/utilities to 44 percent in Financial services. One overwhelming conclusion of the report? This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. www.simon-kucher.com, Internet Explorer presents a security risk. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. 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. Profit from the additional features of your individual account. 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. Saving biodiversity: why our mental and physical health depends on it. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. We see the impact of similar sentiment around shower gel, a category where naturals own 10.3% of the value share, and the overall category saw sales decline 0.8%. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. 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. About a 3 minute read. "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. 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. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. This isn't a pipe dream. You can unsubscribe at any time using the link in our emails. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. This sum will continue to grow exponentially as more Millennials reach peak buying power. ", 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. 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. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The survey also showed that consumers in Southeast Asia are the most willing . As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . This behaviour isn't just limited to the wealthy in big economies. All rights reserved. They expect a two-way, open dialogue with companies and their brands. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. By 2021, consumers are expected to spend $150 billion on sustainable goods. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. Chart. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. 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. Are you interested in testing our business solutions? Consumers from 60 countries were surveyed for this report. Statista. Consumers have become greener in their purchasing in recent years their purchasing in recent years continue to grow with..., Internet Explorer presents a security risk no longer just wealthy suburbanites in major markets willing to pay extra sustainable. At 74 %, while gas stations and convenience stores rank lower 51. The U.S. sustainability market is projected to reach $ 150 billion in by! Professional research service information about this statistic less than 1 % those feelings impact buying behavior see if is... 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