Brands can bring their CSR efforts to life through authentic storytelling. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. Businesses are in a bind. For this group, personal values are more important than personal benefits, such as cost or convenience. The future for CPG, and increasingly for other categories such as apparel, is sustainable. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). From there, it becomes more specific and fragmented. Third-party validation helps certify progress in the eyes of consumers, and the process of carbon offsetting which is easy to measure and communicate helps create tangible benchmarks. 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. This isn't a pipe dream. 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. 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. Businesses must adapt to the times as consumers . In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. lire aussi : 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. On average, more than a one third (34 percent) of the population is willing to pay more for sustainable products or services, and those willing to pay more would accept a 25 percent premium on average. 315-409-9435 Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Others are working for or supporting organizations dedicated to social and environmental change. You can unsubscribe at any time using the link in our emails. 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. 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. 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. Those that had no such commitment grew less than 1%. 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. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. This likely depressed the growth numbers, as many brands have become more sustainable over time. 28 Feb 2023 --- Sustainability factors are increasingly influencing the purchasing behavior of European consumers, according to a study published by crop nutrition company Yara International via IPSOS. Are you interested in testing our business solutions? In a free market economy, it is very difficult to force people to pay more for products. Social responsibility is a critical part of proactive reputation management. For further information please contact: Green is the new black: why retailers want you to know about their green credentials. Among millennials,. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. 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. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. Many sustainable trends in new markets start with beauty and personal care. 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. Nielsen combines sustainability into free-from, clean, simple, sustainable and . I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. Personal values indeed. GreenPrint 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. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. 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. Studies show that people are geared towards using sustainable products more than others. This button displays the currently selected search type. Consumers want #sustainable packaging - and most of them would pay more for it. The views expressed in this article are those of the author alone and not the World Economic Forum. 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. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. 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. Get the full study Join Your Peers 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. If you are an admin, please authenticate by logging in again. So when it comes to purchasing, they are doing their homework. The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. All Rights Reserved. Paying attention to public opinion on specific brands in the news or on social media. It can be used to help people improve their thinking and decisions. Percentage points exceeding 100 percent are probably due to rounding. 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). Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. Feb 28, 2023. They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. 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. 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%. Why cities should be fully recognized stakeholders within the UN system, This Architect Says Sustainable Timber Could Be The Future Of Our Cities, 3 solutions helping net-zero aviation take off, is affecting economies, industries and global issues, with our crowdsourced digital platform to deliver impact at scale. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. Nudge theory is used to understand how people think, make decisions and behave. The survey reports that 58% of Europeans consider climate impact . 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 IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. 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. To trust a company statement, 45% of Americans say they need a third-party validating source. You need a Statista Account for unlimited access. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Both are good tools for building trust. Nielsen 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. 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). Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. Im seeing quite a few climate-friendly products at the supermarket. I dream of a world in which clothing is more expensive across the board, but there are no more sweatshops anywhere, and no more slash-and-burn. 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 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 shift in consumer buying, where more consumers are willing to pay more for environmentally conscious products, underscores the need for manufacturing companies to enhance their commitment to responsible business practices using technologies that support more sustainable product design and development. 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 . 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. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Statista. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. When it comes to purchase behavior, its become abundantly clear that consumers care. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. In 1998, the Council of the European Union passed a directive that setrules for the protection of farmed animals -- a directive updated in 2009 that led tofar more ethical treatment of animals there. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. As soon as this statistic is updated, you will immediately be notified via e-mail. But nearly 60% are unwilling to pay more money for that eco-friendly product.. This is the result of a representative survey that we commissioned from INNOFACT. But brands can nudge consumers towards more eco-friendly products. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. 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. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. 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 they're highly willing to pay more for products that contain all-natural or organic ingredients. So while not all consumers will pay more for green climate-friendly products despite the best of intentions, we can slowly nudge them to make better choices for the planet. Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. 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. The U.S. sustainability market is projected to reach $150 billion in sales by 2021, according to Nielsen . Can changing your mindset change everything? But the results should be interpreted cautiously. Small brands in this space are also attracting the bigger players attention Unilever has purchased brands with loyal followings such as Seventh Generation, Sundial Brands, and Pukka Herbs. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. People want to feel that whatever they are buying aligns with their personal values. 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. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Companies must act now to avoid obsolescence in the future. Get full access to all features within our Business Solutions. 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%. michele@greenprintcorp.com A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and And investors should support companies in making the investments needed for the pivot. 2023 Nielsen Consumer LLC. The relative importance of sustainability during the purchase process will continue to increase. www.simon-kucher.com, Internet Explorer presents a security risk. For fifteen years, Rudominer has operated on the front lines and behind the scenes of numerous communications campaigns, providing strategic counsel to public officials, corporations, trade associations, and non-profits. 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. 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