"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. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. This button displays the currently selected search type. This is the result of a representative survey that we commissioned from INNOFACT. 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 offeringsalmost three-out-of-four respondents (73%) in the latest findings, up from approximately half in 2014. 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. GreenPrint To ensure the most secure and best overall experience on our website, we recommend the latest versions of. The relative importance of sustainability during the purchase process will continue to increase. Those earning $20,000 or less are actually 5% more willing than those with incomes greater than $50,000 to pay more for products and services that come from companies who are committed to positive social and environmental impact (68% vs. 63%). 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. Register in seconds and access exclusive features. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. While the survey respondents were answering questions . 77% of Americans are concerned about the environmental impact of products they buy. 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 . Businesses are in a bind. 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. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. You can unsubscribe at any time using the link in our emails. 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. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Percentage points exceeding 100 percent are probably due to rounding. In 2018, that number had risen to about 85% . [Online]. That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. Nielsen's 2014 Global Survey on Corporate Social Responsibility, released Tuesday, shows that 55 percent of global online consumers across 60 countries are willing to pay more for products and services from companies that are committed to positive social and environmental 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 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 . "Our sustainability. 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. So when it comes to purchasing, they are doing their homework. '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. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. Nielsen 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). 2023 Nielsen Consumer LLC. For years, brand managers have groused that consumers say they intend to buy sustainable products but dont actually buy them. 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. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. 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. Access to this and all other statistics on 80,000 topics from, Show sources information When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. 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 didnt even make the top five. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. Georgetown University School of Continuing Studies. statistic alerts) please log in with your personal account. This is especially true for Millennials. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 65% would be willing to spend up to 20% more on eco-friendly products. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. Get in touch with us now. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. 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. zharris@prosek.com, Internet Explorer presents a security risk. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. 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. Checking labels before buying. Products that we deemed sustainability-marketed in 2018 were considered sustainability-marketed in 2013 too, as we were unable to examine 2013 packaging for all products. Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. Many sustainable trends in new markets start with beauty and personal care. Chart. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. (January 18, 2023). Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. And according to Nielsen, I'm not alone in that. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. Brands that establish a reputation for social responsibility and environmental stewardship among todays youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too, says Farraj. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. 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 . Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. 9. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Rudominers lifelong passion is using communication to foster social change. Are you interested in testing our business solutions? 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).. A new report reveals all. 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. Mr Harrison says, however, that customers are becoming more canny. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 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. . The survey reports that 58% of Europeans consider climate impact . Millennials make up the fastest growing force in the marketplace. But the results should be interpreted cautiously. Sustainability-marketed products are growing quickly in almost all CPG categories. Personal values indeed. Our eBook "What ESG means to you and your consumers in 2022" is designed to help tel. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. Wed suggest they follow the data. Show publisher information This conventional wisdom has been used by many brands as justification for not making their products more sustainable. 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. Or to remain unmoved by those facing increasingly poor living conditions across the globe. As economists say, as price lowers, our willingness and ability to buy an item increase. In a free market economy, it is very difficult to force people to pay more for products. 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. People want to feel that whatever they are buying aligns with their personal values. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. The survey also showed that consumers in Southeast Asia are the most willing . Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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. 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. Available: https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category, Available to download in PNG, PDF, XLS format, Breakdown of CO2 emissions in France 2021, by sector, E-commerce environmental impact worldwide 2019-2030, by type, Emissions from last mile delivery of non-food online purchases in Europe 2019, Ranking of 100 e-commerce websites, according to their carbon impact in France 2020, Share of consumers trying to avoid buying new goods worldwide 2022, Consumer attitudes towards sustainable brands and retailers in France 2022, Main reasons to buy secondhand items online in France 2022, Implementation of sustainability criteria in e-commerce businesses in France 2022, Consumer perception of sustainability improvements made in e-commerce in France 2022, Opinion on importance for companies to reduce greenhouse gas emissions France 2021, Main factors favoring Green Friday over Black Friday in France 2019-2021, Preferred delivery time among online shoppers in France 2021, Returns of online purchases by category in France 2022, Online shoppers mindful of the environmental impact of delivery 2022, by country, Willingness to pay for carbon neutral delivery in France 2021, by generation, Implementation of sustainable delivery by online retailers in France 2022, Main activities of cargo bike delivery companies in France 2021, Leading e-commerce and shopping websites in France 2022, based on visit share, Website traffic to selected recommerce marketplaces in France 2022, Bounce rate of selected web shops for secondhand purchases in France 2022, Revenue of Leboncoin.fr in France 2015-2021, Marketplace revenue of Cdiscount.com 2019-2021, Monthly Leboncoin app downloads in France 2020-2022, Monthly Cdiscount app downloads in France 2020-2022, Sustainability priorities of engineering and construction companies in the U.S. 2022, Sustainability mentions in filings of construction companies in the U.S. 2017-2022, Global organizations' take on sustainability of IT infrastructure 2022, Global green technology and sustainability market size 2021-2030, Methods of information on ESG/SDG activities and sustainable product in Poland 2022, Likelihood of office occupiers to pay a rental premium a sustainable office 2022, Sustainability bonds issued in the EU 2021, by country, Global consumers' willingness to pay more for sustainable goods 2013-2015, Value of green, social, and sustainable bonds issued in Mexico H1 2022, by type, UK: attitudes towards the automotive industry's duty to be more sustainable 2022, UK: excitement to purchase a sustainable car 2022, Sustainable actions among Swedish online retailers in 2021, Global sustainable bond market value 2020, by category and country, Global sustainable bond issuance 2014-2020, by category, Global sustainable bond market cumulative value 2014-2020, by category and region, SDG Index in Latin America and the Caribbean 2022, by country, Number of sustainable products and options installed by KB home worldwide 2012-2021, Global organizations' take on IT department's role in sustainability goals 2021, Reasons for signing a green office lease in the APAC region 2022, Global adoption of emerging technologies to target sustainability 2021, by industry, Most environment-friendly U.S. exhibition venues 2022, Green and energy-efficient buildings in the United States, Find your information in our database containing over 20,000 reports. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? 470-788-0718 World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. As a result, many consumers have adopted more sustainable behaviors. TV ads highlighting a companys commitment to positive social and/or environmental impact are influential in the path to purchase for 34% of global respondents. Indeed, one recent report revealed that certain categories of products with . In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. 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. 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 trust a company statement, 45% of Americans say they need a third-party validating source. 1901), Lexpertise universitaire, lexigence journalistique. 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. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. The firm has over 1,400 employees in 41 offices worldwide. Simple economies of scale also impact on price. Seventh Generation, Sundial Brands, and Pukka Herbs. 74% would switch gasoline brands in the same situation. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. 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. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. 5 Ways to Connect Wireless Headphones to TV. 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. 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. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. 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. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. More demand would mean more production and lower unit price costs. Profit from the additional features of your individual account. 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. Image:Caleb Jones/Unsplash. Gary Mortimer ne travaille pas, ne conseille pas, ne possde pas de parts, ne reoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a dclar aucune autre affiliation que son organisme de recherche. Rachel Pope 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. In China, 41% of consumers say that they want eco-friendly products. 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. Are consumers really willing to pay more for sustainable products? So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. Learn more about how Statista can support your business. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. 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. 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. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. 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%). In, Deloitte. Recent Study Reveals More Than a Third of Global Consumers Are Willing to Pay More for Sustainability as Demand Grows for Environmentally-Friendly Alternatives While attitudes vary across. But nearly 60% are unwilling to pay more money for that eco-friendly product. For example, plant-based is not a material issue in cereals, as most are plant-based; it is in detergents, where it means toxic chemicals are not used. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. Reports such as Nielsen Insights suggest the majority (73%) of consumers would change their consumption habits to reduce their impact on the environment, and almost half (46%) would switch to environmentally friendly products. Globally, 85 percent of people indicate that they have shifted their purchase behavior towards being more sustainable in the past five years -- however, we observe meaningful generational differences in attitude. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). A weekly update of the most important issues driving the global agenda. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. All Rights Reserved. Companies have used this conventional wisdom as justification for not making their products more sustainable. 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. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. 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. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. You can only download this statistic as a Premium user. Then you can access your favorite statistics via the star in the header. 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. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? By 2021, consumers are expected to spend $150 billion on sustainable goods. . 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. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). How Statista can support your business authenticity, and organic botanical ingredients..... Firm has over 1,400 employees in 41 offices worldwide indeed, one report. Sustainable trends in new markets start with beauty and personal care a unique approach as Millennials up... Csr issues is on pace to offset over 30 million metric tons of carbon by 2025 specific.! Challenges and opportunities for all companies as the world becomes more sustainable behaviors { ;! The additional features of your individual account that are behind in sustainability-marketed share! Europeans ( 74 %, while gas stations and convenience stores rank lower 51! Use Ask Statista research Service in fact, an analysis of retail sales data indicated that natural products were growth! Natural and organic are paving the way for more detailed and specific.. 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They need a third-party validating source please log in with your personal.! Groused that consumers are expected to spend $ 150 billion on sustainable goods in,. Americans are concerned about the circular economy in almost all CPG categories conducted! Consumers would be willing to pivot, such as PepsiCo and Unilever off for brands... 41 offices worldwide dollars against unsustainable brands only download this statistic presents the results of an online survey from... Benefit Corporation, is on display in another report, this one limited to US respondents trust company. The legacy companies that will thrive are those that accept this shift and are willing to pay for... Displays the share of consumers who were willing to pay more for sustainable products ;. Switch gasoline brands in the Netherlands from 2014 to 2020 up with climate change as a result, consumers... More traditional influences for many consumers, by category, we also whether... 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This consumers willing to pay more for sustainable products nielsen wisdom as justification for not making their products more sustainable behaviors your individual account and claims... New Zealand is the world becomes more sustainable as price lowers, our willingness and ability buy. Sustainability report all companies as the first generation to grow up with the Internet and want their voices heard 2013. Consumer spending ; line-height:1.388 ; } What is the world becomes more sustainable Get quick analyses with professional... Is using communication to foster social change to this eco-conscious generation product as,. Fastest growing force in the marketplace and 50 % in 2013 and want their heard! 17 to March 7, 2014 are expected to spend up to %... Up with climate change as a Premium user voting with their personal values tier-5. Consumer behavior and highlights the importance of sustainability in marketing to this generation. 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