Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. It can be used to help people improve their thinking and decisions. Michele Koch The firm has over 1,400 employees in 41 offices worldwide. 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.. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. 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. . As CPG sales spiked . 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. www.simon-kucher.com, Internet Explorer presents a security risk. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. In the past year alone, 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%. Consumers from 60 countries were surveyed for this report. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. A survey of 51 retail senior-level . This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Complete study findings are available upon request, including country splits. 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. Climate-friendly defines products that reduce damage specifically to the climate. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. 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%). Voir les partenaires de TheConversation France. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. 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. You can only download this statistic as a Premium user. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. Chart. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. According to a survey conducted among Chinese adults in November 2022, around 66 percent of respondents stated that they were willing to pay more for sustainable goods. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. Businesses are in a bind. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. Are you interested in testing our business solutions? Get in touch with us now. January 18, 2023. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. A paid subscription is required for full access. 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. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. Social responsibility is a critical part of proactive reputation management. What do these findings mean for corporate managers and investors? 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. 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. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. This indicates an opportunity for consumer-goods brands that have already built a high level of trust with consumers to evaluate where best to introduce sustainable products into the market to drive growth, says Carol Gstalder, senior vice president, Reputation & Public Relations Solutions, Nielsen. Percentage points exceeding 100 percent are probably due to rounding. Image:Caleb Jones/Unsplash. 2023 Nielsen Consumer LLC. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. On a global scale, the percentage of consumers willing to pay a premium for. Get the full study Join Your Peers The views expressed in this article are those of the author alone and not the World Economic Forum. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. 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 statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Theres a noticeable break between generations, with 71% and 66% of Millennials and Gen Z willing to do so, compared to only 50% Gen X, 46% of Boomers and 39% Silent Generation. 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. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. 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 study investigated consumers' Willingness To Pay (WTP) for dry semolina pasta produced with raw materials from more diversified agricultural systems and which factors influence this . Our eBook "What ESG means to you and your consumers in 2022" is designed to help 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 . The study also found a large degree of mistrust about companies environmental claims. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. Zach Harris 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. As soon as this statistic is updated, you will immediately be notified via e-mail. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. 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. Meanwhile, fish and seafood dollars and units rose 8.7% and 2.7%, respectively, from 2017 to 2019, outpacing the growth of other proteins, including legumes, nuts and seeds. 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). And how can we encourage people to make good choices? 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. This likely depressed the growth numbers, as many brands have become more sustainable over time. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. To a certain degree, products that need to have a higher degree of efficacy (such as laundry care and sanitary napkins) were more likely to have a lower share of sustainability-marketed products, perhaps because consumers are concerned about performance trade-offs. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. "Consumers are really seeking to purchase products that help them stay true to their values and what they consider matters most to them," said Parker. 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. The first-ever edition of the companys Business of Sustainability Index found that nearly two-thirds (64%) of Americans are willing to pay more for sustainable products but most (74%) dont know how to identify them. 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. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. 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 Consumer-goods brands that fail to take this into account will likely fall behind.. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. 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. 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. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. As the first generation to grow up with climate change as a defining issue, Gen Z is deeply . Checking labels before buying. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. From there, it becomes more specific and fragmented. Design The relative importance of sustainability during the purchase process will continue to increase. Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. Sustainability-marketed products are growing quickly in almost all CPG categories. Companies must act now to avoid obsolescence in the future. 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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. Millennials make up the fastest growing force in the marketplace. A weekly update of the most important issues driving the global agenda. 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 . Sustainability is a worldwide concern that continues to gain momentumespecially in countries where growing populations are putting additional stress on the environment, says Grace Farraj, senior vice president, Public Development & Sustainability, Nielsen. What is the Green List and how can it help protect the worlds natural wonders? Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . The survey is conducted among 48 percent of female and 52 percent male respondents. 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). Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. Georgetown University School of Continuing Studies. Traditional advertising will not work with Millennials. 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. 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. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. The Global Sustainability Study 2021*, conducted by global strategy and pricing consultancy Simon-Kucher & Partners, reveals significant global paradigm shifts in how consumers view sustainability and the associated generational differences in willingness to pay for sustainable products and services. This is the result of a representative survey that we commissioned from INNOFACT. crivez un article et rejoignez une communaut de plus de 160 400 universitaires et chercheurs de 4 572 institutions. lire aussi : 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. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. 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. Rachel Pope In the US, this number is just over the global average at 61 percent. Create a free account and access your personalized content collection with our latest publications and analyses. Learn more about how Statista can support your business. But the results should be interpreted cautiously. Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. 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. Access to this and all other statistics on 80,000 topics from, Show sources information Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. What is the World Economic Forum doing about the circular economy? michele@greenprintcorp.com As economists say, as price lowers, our willingness and ability to buy an item increase. For example, one study found Spanish consumers were willing to pay 2237% more for green products, but Japanese consumers were only willing to pay 822% more for green products. 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%. 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. 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. how much more are you willing to pay compared to regular goods) when purchasing the following categories? 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). 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 most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. Companies across industries have . 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. If you are an admin, please authenticate by logging in again. 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. Indeed, one recent report revealed that certain categories of products with . The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. 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). 65% would be willing to spend up to 20% more on eco-friendly products. 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. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. Almost three quarters of the . Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. 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. Again, younger generations lead the way as higher shares of Generation Z (39 percent) and Millennials (42 percent) are willing to pay for sustainability compared to Gen. X (31 percent) and Baby Boomers (26 percent). They expect a two-way, open dialogue with companies and their brands. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. Products must meet similar standards (ISO 14020 and ISO 14024). 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. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). Consumersparticularly Millennialsincreasingly say they want brands that embrace purpose and sustainability. 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