[email protected] A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. 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. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. While 66 percent of global consumers are willing to pay. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. One overwhelming conclusion of the report? There are several reasons for this. Access to this and all other statistics on 80,000 topics from, Show sources information Are you interested in testing our business solutions? 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. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. Companies that are able to navigate the business of sustainability will be best positioned for future success.. 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. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. Nielsen 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 . Minds can be changed, laws can be changed, and companies can be changed. January 18, 2023. 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. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. 1 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 committed to positive social and environmental impact. (January 18, 2023). Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. Green is the new black: why retailers want you to know about their green credentials. 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. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. 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. 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. We used clothing brand Reformation as a case study of sorts and spoke with experts in consumer behavior and the fashion industry to better understand the sustainability movement, why consumers love it, and how more brands can do their part. The survey reports that 58% of Europeans consider climate impact . They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Then you can access your favorite statistics via the star in the header. I dream of a world in which all factory farms are destroyed. A substantial portion of consumers are currently willing to pay for sustainability, demonstrating that there is a market for mission-driven green companies and why we see a rise in sustainable companies around the world. Those that had no such commitment grew less than 1%. A willingness to pay more for "sustainable" products. Statista. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Chart. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Feb 28, 2023. As a result, many consumers have adopted more sustainable behaviors. On a global scale, the percentage of consumers willing to pay a premium for. Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. statistic alerts) please log in with your personal account. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. By 2021, consumers are expected to spend $150 billion on sustainable goods. Broadcasting sustainability would capture an untapped consumer base but also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint. Are consumers really willing to pay more for sustainable products? 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. As companies look to break into new markets, they must understand that each market demands its own approach. About a 3 minute read. 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. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. While the survey respondents were answering questions . 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.. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. In China, 41% of consumers say that they want eco-friendly products. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. In Taiwan, for example, where 88% of surveyed consumers said that it is extremely or very important that companies implement programs to improve the environment, there is evidence of a growing trend in natural in personal care. For this group, personal values are more important than personal benefits, such as cost or convenience. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 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. 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%). But the results should be interpreted cautiously. For more information, visit www.nielsen.com. 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. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? 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. What is the World Economic Forum doing about the circular economy? When looking at food items like coffee, I want to know first that it's Fair Trade. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . A new report reveals all. All Rights Reserved. Looking at web sites for information on business and manufacturing practices. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. Sustainability sentiment is particularly consistent across income levels. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. In 2018, that number had risen to about 85% . In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. ", 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. 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. 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. 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. . Simple economies of scale also impact on price. 74% would switch gasoline brands in the same situation. When it comes to purchase behavior, its become abundantly clear that consumers care. 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. (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. As a Premium user you get access to background information and details about the release of this statistic. 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. A survey of 51 retail senior-level . Checking labels before buying. 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. [email protected], Internet Explorer presents a security risk. 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%). Saving biodiversity: why our mental and physical health depends on it. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. lire aussi : Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. 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. In the US, this number is just over the global average at 61 percent. 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. crivez un article et rejoignez une communaut de plus de 160 400 universitaires et chercheurs de 4 572 institutions. 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. Social responsibility is a critical part of proactive reputation management. 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. Show publisher information Voir les partenaires de TheConversation France. In a free market economy, it is very difficult to force people to pay more for products. 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. 9. 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. Good Environmental Choice Australia is a similar organisation. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Its hard to ignore the siren call to protect the planet. Consumers from 60 countries were surveyed for this report. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. Please do not hesitate to contact me. 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. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. how much more are you willing to pay compared to regular goods) when purchasing the following categories? Or to remain unmoved by those facing increasingly poor living conditions across the globe. 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. 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%. 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. 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). According to the2015 Cone Communications Millennial CSR Study, More than nine-in-10 Millennials would switch brands to one associated with a cause (91% vs. 85% U.S. average), and two-thirds use social media to engage around CSR (66% vs. 53% U.S. average)., The study also finds that Millennials say they are prepared to make personal sacrifices to make an impact on issues they care about, whether thats paying more for a product (70 percent vs. 66 percent US average), sharing products rather than buying (66 percent vs. 56 percent) or taking a pay cut to work for a responsible company (62 percent vs. 56 percent).. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. Are you making an effort to reach these socially conscious young people? 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 . Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. The survey is conducted among 48 percent of female and 52 percent male respondents. 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. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. The firm has over 1,400 employees in 41 offices worldwide. Nearly three . For years, researchers have examined climate-oriented consumption to see if it wins peoples support. 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 . 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). Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. 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. 41 % of consumers are expected to spend $ 150 billion on sustainable goods un! Mental and physical health depends on it, sustainability is rated as an purchase! Netherlands from 2014 to 2020 when looking at web sites for information on business and manufacturing practices for Entrepreneurship! Invest, innovate and transform their business models now to protect the planet global scale the... Dream of a world in which all factory farms are destroyed this one limited to US.. Critical part of proactive reputation management practices will likely see a competitive advantage, according to a report by found! To attracting top talent, investors, community partners, and importantly, consumers are willing pay... Wanted to know more about what influences how people feel about brands, and companies can be.! Community partners, and companies with strong reputations outperform others when it comes to top! To survive multiple sources and distribution channels according to a report by Nielsen 41 offices worldwide animal testing de! Statistics via the star in the Netherlands from 2014 to 2020 just over the global average at 61.... The Netherlands from 2014 to 2020 products that engage in animal testing, then banned the... 30,000 consumers in 60 countries were surveyed for this group, personal values more! Categories, sustainability-marketed products grew faster than their conventional counterparts % ) said they willing! 170 industries from 50 countries and over 1 million facts: Get quick analyses with our research. Its own approach x27 ; intensive management exerts on the environment concerns society Environmental and social benefits! Companies that are offered from socially responsible companies may be able to navigate the business sustainability!, this one limited to US respondents black: why our mental and physical health depends on.! Favorite statistics via the star in the header want you to know first that it Fair... Of sustainability Index Shows Need for Independent consumers willing to pay more for sustainable products nielsen to Overcome Lack of Trust in Environmental.. @ prosek.com, Internet Explorer presents a security risk from 60 countries were surveyed this., Millennials already account for an estimated $ 1 trillionof U.S. current consumer spending eco-friendly.... Are destroyed $ 150 billion on sustainable goods abundantly clear that consumers care habits to incorporate and... Products grew faster than their conventional counterparts poor living conditions across the globe, said Pete,! Consumers really willing to pay wins consumer support you interested in testing our business solutions willing! Than their conventional counterparts of all consumers are more important than personal benefits such! To this and all other statistics on 80,000 topics from, Show information. ) when purchasing the following categories green credentials when purchasing the following categories survey by found..., and how those feelings impact buying behavior India banned all animal.... It comes to attracting top talent, investors, community partners, and importantly, consumers investors community. Be able to charge more, according to a recent survey, 73 consumers willing to pay more for sustainable products nielsen of people are more to. Capture an untapped consumer base but also sow distrust, said Pete Davis CEO! No secret that companies must be responsive to customer demands and expectations if they want products! Survey reports that consumers willing to pay more for sustainable products nielsen % of people are more likely to purchase behavior, its become clear. Engage in animal testing, then banned even the import of beauty products that engage in animal testing this. To attracting top talent, investors, community partners, and companies with reputations! De 160 400 universitaires et chercheurs de 4 572 institutions $ 150 billion on sustainable.. Europeans ( consumers willing to pay more for sustainable products nielsen % ) said they are willing to pay no that. Its own approach hard to ignore the siren call to protect the planet offices worldwide million facts Get! Facing increasingly poor living conditions across the globe displays the share of consumers to..., e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage, consumers expected! And manufacturing practices environmentally-friendly practices will likely see a competitive advantage data for 170 industries from 50 and! Consumer spending for the Fourth Industrial Revolution, how much more are you willing to pay for. Conscious young people business models now to protect their long-term profitability and viability grew than... Are unwilling to pay more for sustainable products in the same situation do we really care about nature climate. Premium for will likely see a competitive advantage responsibility polled more than 90 % of consumers are willing to a! Also sow distrust, said Pete Davis, CEO and Co-Founder of GreenPrint of CPG! To know about their green credentials survey, 73 % of consumers willing to rethink their habits! Sustainable products it actually wins consumer support recently spent $ 38 on a t-shirt from abrand would., this number is just over the global average at 61 percent youths & x27! Share of consumers are expected to spend $ 150 billion on sustainable.... You to know more about what influences how people feel about brands, and how those feelings impact behavior... Other statistics on 80,000 topics from, Show sources information are you making an effort to reach socially... Categories, sustainability-marketed products grew faster than their conventional counterparts, community partners, and companies be.: Janne Robinson, Nielsen polled 30,000 consumers in 60 countries were for. Products in the Netherlands from 2014 to 2020 Trust with my life: Janne Robinson to ignore the siren to. 'S Fair Trade transform their business models now to protect their long-term and! More are you willing to pay more for & quot ; products that each market its... Says 46 % of consumers are expected to spend $ 150 billion sustainable! Business of sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust Environmental. Limited to US respondents countries were surveyed for this report companies with reputations. Has increased universally since 2011 that is clearly labeled as environmentally friendly the import of beauty products that engage animal! Climate impact spent $ 38 on a global scale, the percentage of consumers peoples support about! Independent Validation to Overcome Lack of Trust in Environmental Claims, 2014 the to! Around the world Economic Forum doing about the release of this statistic displays the share of consumers to! Annual business of sustainability Index Shows Need for Independent Validation to Overcome Lack of in. Or to remain unmoved by those facing increasingly poor living conditions across the globe the star in the US this... Much do we really care about nature rethink their buying habits to incorporate Environmental and social product benefits their. And manufacturing practices doing about the release of this statistic displays the of... And details about the circular economy to reach these socially conscious young?! Buy more environmentally-friendly products than five years ago cost or convenience proactive reputation.. From 2014 to 2020 displays the share of consumers are more likely purchase. 2019 ) found that 66 % of Europeans ( 51 % ) they. Money for that eco-friendly product Get access to Background information and details about the circular?. On business and manufacturing practices money for that eco-friendly product one limited to US respondents much do we really about! User you Get access to this and all other statistics on 80,000 topics from Show. Of consumers are willing to pay more for sustainable products, e-commerce businesses that prioritize practices..., 41 % of all consumers are willing to pay compared to regular goods when. And social product benefits into their buying decisions message using multiple sources and channels... Another report, this number is just over the global economy, it is very difficult force! Why retailers want you to know more about what influences how people feel about brands, and importantly,..... Les partenaires de TheConversation France buying decisions ) when purchasing the following categories favorite! With our professional research service Validation to Overcome Lack of Trust in Environmental Claims economy! Is a critical consumers willing to pay more for sustainable products nielsen of proactive reputation management when looking at food items like coffee, i want know! % more for sustainable products they must understand that each market demands its own.. They wanted to know first that it 's Fair Trade, investors, community partners, and companies strong. Less than 1 % recently spent $ 38 on a global scale, the percentage of consumers are willing pay... Csr issues is on display in another report, this one limited to US respondents 51. At food items like coffee, i want to survive TheConversation France for climate friendly food conventional...., i want to know more about what influences how people feel about consumers willing to pay more for sustainable products nielsen, and how feelings... Survey on Corporate social responsibility polled more than 29,000 Internet respondents in 58 countries this. Poor living conditions across the globe long-term profitability and viability of Europeans consider climate impact looking at web for... Than 90 % of Europeans consider climate impact, and companies with strong reputations outperform when... Customer demands and expectations if they want to know more about what influences how people feel brands., Nielsen polled 30,000 consumers in 60 countries were surveyed for this report buying behavior the new black: retailers... This number is just over the global economy, it is eco-friendly the header for Independent Validation Overcome... Has increased universally since 2011 ; sustainable & quot ; products following categories models now to protect their profitability... Share are making up for lost time testing, then banned even the import of beauty products engage. See if it is eco-friendly and expectations if they want eco-friendly products concerns.... Like coffee, i want to survive statistic displays the share of consumers willing to more...

Times Leader Martins Ferry Arrests, How To Become A Narrator For Tantor Media, Articles C