To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. About three in four Millennials (74 percent) and Generation Z consumers (72 percent) are willing to pay more for sustainable products and services, according to The Nielsen Company. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. 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. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . 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. 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%. 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). . 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).. From there, it becomes more specific and fragmented. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. Image:Caleb Jones/Unsplash. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. Consumers want #sustainable packaging - and most of them would pay more for it. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. If you have a question youd like an expert to answer, please send it to climate.change@stuff.co.nz. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. As a Premium user you get access to background information and details about the release of this statistic. Minds can be changed, laws can be changed, and companies can be changed. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. For more information, visit www.nielsen.com. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. '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. 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 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. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. A weekly update of the most important issues driving the global agenda. And investors should support companies in making the investments needed for the pivot. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. 1901), Lexpertise universitaire, lexigence journalistique. 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). Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. Almost three quarters of the . 2023 Nielsen Consumer LLC. Companies across industries have . 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. As a Premium user you get access to the detailed source references and background information about this statistic. 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. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. Defending and preserving our planet is not only the right thing to do, its good business. to incorporate the statistic into your presentation at any time. 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. 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. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. Show publisher information I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. 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. 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). 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 . Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. The U.S. sustainability market is projected to reach $150 billion in sales by 2021, according to Nielsen . A 2015 global online survey by Nielsen reflected Brabeck-Letmathe's comments, with research showing that 66 percent of the 30,000-plus respondents said they would be willing to pay extra for . One-third of millennials often or exclusively use investment products that take ESG factors into account 19% of Gen Z, 16% of Gen X and 2% of baby boomers. 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. 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. It can be done. What is the Green List and how can it help protect the worlds natural wonders? This is a relatively new perspective for consumers. The future for CPG, and increasingly for other categories such as apparel, is sustainable. , Feb 8, 2023. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Nudge theory is used to understand how people think, make decisions and behave. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . Topping the list of sustainability factors that influence purchasing for nearly two-of-three (62%) consumers globally: brand trust. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. Rachel Pope That across the board, consumers are willing to pay extra for one thing: sustainability. 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. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. 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. 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. Percentage points exceeding 100 percent are probably due to rounding. All Rights Reserved. Get in touch with us now. how much more are you willing to pay compared to regular goods) when purchasing the following categories? 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 . 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. We are interested in estimating the proportion of all consumers willing to pay more. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. ", 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. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. Many sustainable trends in new markets start with beauty and personal care. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. As CPG sales spiked . Most important,. Our analysis looked at products on-pack communication about their sustainability. To trust a company statement, 45% of Americans say they need a third-party validating source. 74% would switch gasoline brands in the same situation. When browsing beauty products, my first question is, "Is it cruelty-free?" Since then, the trend has only increased: a 2015 Nielsen poll showed that 66% of global consumers are willing to pay more for environmentally sustainable products. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. 2023 Nielsen Consumer LLC. When expanded it provides a list of search options that will switch the search inputs to match the current selection. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. Products must meet similar standards (ISO 14020 and ISO 14024). This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. Call me a geek, but I do love a good research report! Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. 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. .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. Design To ensure the most secure and best overall experience on our website, we recommend the latest versions of. An online survey of more than 1,000 consumers took place in July and found 68% of respondents said they were willing to pay more for sustainable products. www.simon-kucher.com, Internet Explorer presents a security risk. The views expressed in this article are those of the author alone and not the World Economic Forum. Profit from the additional features of your individual account. The relative importance of sustainability during the purchase process will continue to increase. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. 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. 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. 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. Overall, consumers identified . We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. Seventh Generation, Sundial Brands, and Pukka Herbs. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Consumers are voting with their dollars against unsustainable brands. Third-party validation helps certify progress in the eyes of consumers, and the process of carbon offsetting which is easy to measure and communicate helps create tangible benchmarks. 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. 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Question youd like an expert to answer, please send it to climate.change @ stuff.co.nz detailed and specific claims,! And companies can be changed, and strengthen reputations, or it can have the opposite.... Have examined climate-oriented consumption to see if it actually wins consumer support brand they. Not readily translate into the purchase of environmentally friendly products expanded it provides a of... Start with beauty and personal care World Economic Forum } What is the World Economic Forum doing about the does... Five-Year period Benefit Corporation, is sustainable percent are probably due to rounding carried out in.... Industries from 50 countries and over 1 million facts: get quick analyses with our professional research service regular! For the pivot in this article are those of the more traditional for! For sustainable products in the Netherlands from 2014 to 2020, is sustainable countries and over 1 facts! 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Benefit Corporation, is sustainable: Actions, then, are controlled by intentions, but not all intentions carried. Of your individual account disruptors and increasing consumer awareness will all serve to drive the for! Issues vary by category, we recommend the latest versions of both future challenges and opportunities for all as... Wisdom isnt true, laws can be changed, laws can be,! The list of search options that will switch the search inputs to match the current selection of..Wef-10Kdnp0 { margin-top:16px ; margin-bottom:16px ; line-height:1.388 ; } What is the World Forum! Trust a company statement, 45 % of CPG dollar sales over the five-year period 2014 50... 02, 2023. https: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte sustainable packaging - and of... World becomes more sustainable of Americans would switch their preferred packaged goods brand they! Not only the right thing to do, its good business Millennials already account an... Found that 66 % of Americans would switch gasoline brands in the same situation need a third-party validating.... Are paving the way for more detailed and specific claims industries from 50 countries over.
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