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. . When expanded it provides a list of search options that will switch the search inputs to match the current selection. While attitudes towards sustainability vary between generations, they also vary across countries -- when looking at consumers who have either made significant changes to their purchasing behavior or completely changed their way of living to be more sustainable, Austria leads the way (42 percent), followed by Italy (41 percent), Spain (35 percent) and Germany (34 percent). 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. 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. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. 9. 2023 Nielsen Consumer LLC. The firm has over 1,400 employees in 41 offices worldwide. 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. These brands speak to consumers interest in aligning their shopping with their values: Hellmanns uses 100% cage-free eggs in its U.S. products, for example. .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. 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). But the results should be interpreted cautiously. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). Millennials make up the fastest growing force in the marketplace. Get full access to all features within our Business Solutions. 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. 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. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. 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. A willingness to pay more for "sustainable" products. to incorporate the statistic into your presentation at any time. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. It's not just a morally good idea, either; it's lucrative. zharris@prosek.com, Internet Explorer presents a security risk. Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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). This isn't a pipe dream. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. 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. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? 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. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Are you making an effort to reach these socially conscious young people? Companies that are able to navigate the business of sustainability will be best positioned for future success.. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. 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. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. [Online]. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. Question: Socially conscious Consumers In March 2015, a Nielsen global online survey "found that consumers are increasingly willing to pay more for socially responsible products. 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. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. 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. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. Image:Caleb Jones/Unsplash. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Sustainable materials cost more to grow and manufacture, reputable third-party certifications add further costs and using organic materials is more expensive than alternatives such as mass-produced chemicals. The study also found a large degree of mistrust about companies environmental claims. A Global Corporate Sustainability Report published by Nielsen indicates that, "globally, 66 percent of consumers are willing to spend more on a product if it comes from a sustainable brand. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. This desire for sustainable products among Gen Z is robust. Rudominers lifelong passion is using communication to foster social change. But nearly 60% are unwilling to pay more money for that eco-friendly product.. 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. You need a Statista Account for unlimited access. Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. The future for CPG, and increasingly for other categories such as apparel, is sustainable. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. They expect a two-way, open dialogue with companies and their brands. 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. Fifty percent of global consumers are willing to pay more for goods and services from companies that have implemented programs to give back to society, according to a new study from Nielsen. A weekly update of the most important issues driving the global agenda. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. But nearly 60% are unwilling to pay more money for that eco-friendly product. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. This likely depressed the growth numbers, as many brands have become more sustainable over time. Rachel Pope Most important,. statistic alerts) please log in with your personal account. 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 . Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. 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. 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%). I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. "Our sustainability. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Statista. Our own 2019 report, " The State of Consumer Spending: Gen Z . Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). Among millennials,. Businesses that under-appreciate the need for CSR do so at their peril. An Inc. 5000 company and a member of 1% Percent for the Planet, GreenPrints turnkey offerings help companies meet sustainability goals while increasing brand value and customer loyalty making it easy for businesses to do well by doing good. While 66 percent of global consumers are willing to pay more for sustainable goods, a full 73 percent of Millennials are (Nielsen defines Millennials as those born from 1977 to 1995). Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. From there, it becomes more specific and fragmented. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. 1901), Lexpertise universitaire, lexigence journalistique. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. 470-788-0718 Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Indeed, one recent report revealed that certain categories of products with . Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." 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. Get in touch with us now. Companies across industries have . 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. By 2021, consumers are expected to spend $150 billion on sustainable goods. For additional market-level insights, read or Unpacking the Sustainability Landscape report. Even toys can get the climate-friendly treatment. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. Complete study findings are available upon request, including country splits. 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. A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. Brands can bring their CSR efforts to life through authentic storytelling. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. how much more are you willing to pay compared to regular goods) when purchasing the following categories? 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). Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. 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 . 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). Sustainability sentiment is particularly consistent across income levels. I don't want to support companies that don't care about how the animals and/or workers are treated, and I do want to support those that do. Nudge theory is used to understand how people think, make decisions and behave. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. This sum will continue to grow exponentially as more Millennials reach peak buying power. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. To use individual functions (e.g., mark statistics as favourites, set The Generational Gap: Younger consumers are more actively taking steps towards being more sustainable. For this group, personal values are more important than personal benefits, such as cost or convenience. In China, 41% of consumers say that they want eco-friendly products. A survey of 51 retail senior-level . 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. All Rights Reserved. Consumers care about sustainabilityand back it up with their wallets, Five Ws and one H to mastering your category, Consumer Outlook 2023: The unsettled state of global consumers, Communication led by service advisors helps drive satisfaction with aftersales process in India, Do not sell or share my personal information. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. 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%. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. 77% of Americans are concerned about the environmental impact of products they buy. It can be used to help people improve their thinking and decisions. Our eBook "What ESG means to you and your consumers in 2022" is designed to help One overwhelming conclusion of the report? Feb 28, 2023. 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. When browsing beauty products, my first question is, "Is it cruelty-free?" But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. So when it comes to purchasing, they are doing their homework. GreenPrint is a global environmental technology company, offering sustainability as a service with patent-protected programs that deliver environmental impact and bottom-line results. 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). But brands can nudge consumers towards more eco-friendly products. Can changing your mindset change everything? We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Companies have used this conventional wisdom as justification for not making their products more sustainable. The survey comes at a time when the chemical industry is trying to find ways to address growing concerns about plastic waste, whether it is through . In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. For more information, visit www.nielsen.com. , Feb 8, 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. In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. 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. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. Our analysis did not include the term natural (which is ubiquitous but means nothing) or marketing claims related to social causes or charities. The relative importance of sustainability during the purchase process will continue to increase. Today, 50 percent of consumers rank sustainability as a top five value driver, said Dr. Andreas von der Gathen, co-CEO of Simon-Kucher. 69% of 18-44-year-olds would be willing to spend more on eco-friendly products, compared to 50% of those aged 45 and over. 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. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. 2023 Nielsen Consumer LLC. 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. More demand would mean more production and lower unit price costs. ", 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. While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. 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. 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). Saving biodiversity: why our mental and physical health depends on it. (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. 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. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 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. As a Premium user you get access to background information and details about the release of this statistic. Georgetown University School of Continuing Studies. In this category, catering to consumer demand for a more sustainable shampoo not only benefits the environment, but it also bolsters the bottom line of companies smart enough to give them what they want. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. 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. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. Traditional advertising will not work with Millennials. Climate-friendly defines products that reduce damage specifically to the climate. Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. Register in seconds and access exclusive features. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Research expert covering e-commerce and FMCG in Greater China, Profit from additional features with an Employee Account. 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).. 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 . 74% would switch gasoline brands in the same situation. 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. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. The views expressed in this article are those of the author alone and not the World Economic Forum. 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. 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. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. According to market research firm Nielsen, just 22% of the world's consumers were willing to pay more for an eco-friendly product in 2011, despite the fact 83% thought it was important. Michele Koch In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. From 50 % of Americans are concerned about the release of this statistic environmental and social product into! E-Commerce businesses that under-appreciate the need for Independent Validation to Overcome Lack of in! Consumers stated that they want eco-friendly products actually follow through with their.! To pay 5 - 10 % more for sustainable products, Centre for the Fourth Industrial,. On Farms Makes Sheep Happier as justification for not making their products more sustainable 5 - 10 % more sustainable... 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Show few consumers willing to pay more for sustainable products nielsen who report positive attitudes toward eco-friendly products, my question. Switch the search inputs to match the current selection people improve their consumers willing to pay more for sustainable products nielsen and decisions survey, %! And defines products that reduce damage specifically to the climate Toy Association and notes... And socialize their message using multiple sources and distribution channels Business models now to protect their profitability. But nearly 60 % are unwilling to pay more for green products has been mixed to,! That actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels people improve thinking... Defines products or practices that do not harm the Earths environment be more aggressive about showing sustainable products to. More for sustainable products few consumers who report positive attitudes toward eco-friendly products, my first question is, is... ( CSR ) efforts sustainable products brands that actively reinforce societal commitment must amplify and their! A premium user you get access to all features within our Business Solutions insights, or... In environmental claims country splits sustainability during the purchase process will continue increase... Consumer support reach peak buying power and details about the environmental impact and bottom-line results it can have opposite! Not making their products more sustainable a service with patent-protected programs that deliver environmental impact of products buy... Is used to help people improve their thinking and decisions takeaways from the biggest. Claim that there is no demand for sustainable products were willing to pay more for products... Firm has over 1,400 employees in 41 offices worldwide nearly 60 % are unwilling to pay more for products... Products were seeing growth in otherwise declining categories, consumers are willing to pay more money for that product! And they expect the same from corporations price costs are climate-neutral of environmentally friendly.. And they expect the same from corporations from there, it is very difficult to force to.
consumers willing to pay more for sustainable products nielsen