I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. There are several reasons for this. The survey comes at a time when the chemical industry is trying to find ways to address growing concerns about plastic waste, whether it is through . While this statistic is telling on its own, what's more telling is that 81% of those interviewed said that they planned to buy more sustainable products over the next five years.. And environmental consciousness isn't a new trend among consumers. Products must meet similar standards (ISO 14020 and ISO 14024). CPGs that are not making the pivot will lose Kraft Heinz, whose investors have encouraged a cost-cutting approach that is backfiring, is a case in point. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. In a free market economy, it is very difficult to force people to pay more for products. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? Zach Harris 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. Others are working for or supporting organizations dedicated to social and environmental change. Then you can access your favorite statistics via the star in the header. But nearly 60% are unwilling to pay more money for that eco-friendly product. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Even toys can get the climate-friendly treatment. This isn't a pipe dream. When looking at food items like coffee, I want to know first that it's Fair Trade. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. Michele Koch Our analysis did not include the term natural (which is ubiquitous but means nothing) or marketing claims related to social causes or charities. As soon as this statistic is updated, you will immediately be notified via e-mail. Younger shoppers are the most willing to. 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). This likely depressed the growth numbers, as many brands have become more sustainable over time. not how pretty the blush is. Colloquially, use of the word green is applied broadly to almost everything related to benefiting the environment, from production and transportation to architecture and even fashion. 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. 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. The study also found a large degree of mistrust about companies environmental claims. According to our Consumers Buy The Change They Wish To See in The World report, we found that natural and organic ingredients and certifications serve as the entry level point for nearly every market when it comes to sustainability attributes consumers are searching for. 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. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. Nearly three . 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. While the demand for such products remains low, the price remains high. Saving biodiversity: why our mental and physical health depends on it. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. The firm has over 1,400 employees in 41 offices worldwide. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. 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. Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. Sustainable materials cost more to grow and manufacture, reputable third-party certifications add further costs and using organic materials is more expensive than alternatives such as mass-produced chemicals. 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 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. 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 . Those that had no such commitment grew less than 1%. What is the World Economic Forum doing about the circular economy? Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. 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. Companies across industries have . Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Please create an employee account to be able to mark statistics as favorites. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. 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. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. 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. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. We are interested in estimating the proportion of all consumers willing to pay more. 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. Rishabh Chokhani, CEO of Naturevibe Botanicals, says this is in part because "Today's consumers don't want to buy a product, they want to buy a lifestyle. Businesses are in a bind. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. 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. As consumers become increasingly aware of what they put in and on their bodies, theyre also interested in buyingand sometimes paying morefor products that simultaneously help the environment. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. Indeed, one recent report revealed that certain categories of products with . 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%). Show publisher information 315-409-9435 A 2015 global online survey by Nielsen reflected Brabeck-Letmathe's comments, with research showing that 66 percent of the 30,000-plus respondents said they would be willing to pay extra for . Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. But the results should be interpreted cautiously. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. While 66 percent of global consumers are willing to pay. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. 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. Simple economies of scale also impact on price. As a result, many consumers have adopted more sustainable behaviors. Consumers want #sustainable packaging - and most of them would pay more for it. 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. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. 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. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. Businesses that under-appreciate the need for CSR do so at their peril. Consumers are also willing to pay more for chocolate products that are free-from 'undesirable' or artificial ingredients, a subset of products that makes up 15.2% of the overall chocolate category . Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. 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. Among millennials,. Brands can bring their CSR efforts to life through authentic storytelling. 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. Access to this and all other statistics on 80,000 topics from, Show sources information Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. To trust a company statement, 45% of Americans say they need a third-party validating source. Complete study findings are available upon request, including country splits. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. All Rights Reserved. Almost three quarters of the . Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. 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. Statista. 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. People want to feel that whatever they are buying aligns with their personal values. Looking at web sites for information on business and manufacturing practices. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. Millennials already played a significant . Profit from the additional features of your individual account. 74% would switch gasoline brands in the same situation. You need a Statista Account for unlimited access. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. This is especially true for Millennials. 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. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. 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. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. And according to Nielsen, I'm not alone in that. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. Personal values indeed. 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. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. Feb 28, 2023. 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 . 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. 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. However, as demand grows for sustainable products and they become the expectation rather than the exception, sustainability will become table stakes and hygiene factors, said Jain. tel. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. 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. From there, it becomes more specific and fragmented. Consumersparticularly Millennialsincreasingly say they want brands that embrace purpose and sustainability. 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. 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,. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. 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. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. In fact, almost half (41%) of consumers from around the world say that theyre highly willing to pay more for products that contain all-natural or organic ingredients. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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 A survey of 51 retail senior-level . IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. . We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. This is especially true for Millennials. In China, 41% of consumers say that they want eco-friendly products. , Feb 8, 2023. 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). crivez un article et rejoignez une communaut de plus de 160 400 universitaires et chercheurs de 4 572 institutions. 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. Reports, such as Nielsen Insights , suggest the majority (73 percent) of people would change their consumption habits to reduce their impact on the environment, and almost half . 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. In the US, this number is just over the global average at 61 percent. Green is the new black: why retailers want you to know about their green credentials. 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. Sustainability-marketed products are growing quickly in almost all CPG categories. 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. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. 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