To trust a company statement, 45% of Americans say they need a third-party validating source. Mr Harrison says, however, that customers are becoming more canny. Nudge theory is used to understand how people think, make decisions and behave. 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. Nielsen While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. 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 . 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 As soon as this statistic is updated, you will immediately be notified via e-mail. But brands can nudge consumers towards more eco-friendly products. Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. On a global scale, the percentage of consumers willing to pay a premium for. 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. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. That across the board, consumers are willing to pay extra for one thing: sustainability. This is especially true for Millennials. I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." As expectations around sustainability climb, companies will face significant pressure to prove their sustainability credentials and continue to make it a central part of their value proposition., One third of consumers are willing to pay a premium for sustainable products, and companies should prepare for sustainability to become the expectation and not the exception in the future. Small brands in this space are also attracting the bigger players attention Unilever has purchased brands with loyal followings such as Seventh Generation, Sundial Brands, and Pukka Herbs. An international study of 20,000 customers by grocery brand giant Unilever identified one in three (33%) people were choosing to buy from brands they believe are doing environmental good. 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. '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. Many sustainable trends in new markets start with beauty and personal care. 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. Call me a geek, but I do love a good research report! 2023 Nielsen Consumer LLC. Are consumers willing to pay more for these? One overwhelming conclusion of the report? A survey of 51 retail senior-level . As companies look to break into new markets, they must understand that each market demands its own approach. 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. 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. Minds can be changed, laws can be changed, and companies can be changed. . Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. it is biodegradable (65%) or made from recycled packaging (60%), when it comes to making a purchase, consumers value durability . I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. ", 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. COLORADO SPRINGS, US (ICIS)-Consumers are willing to pay more for sustainable products that can be recycled or reused, according to a new survey of 6,000 people worldwide by consultancy Accenture. Those that had no such commitment grew less than 1%. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and Marketers, operators, and merchants need to take the following steps: one, penetrate the right segment; two, unlock what motivates that segment to spend money; and three, act on strategies that build loyalty through ongoing consumer engagement. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. For years, brand managers have groused that consumers say they intend to buy sustainable products but dont actually buy them. 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. 65% would be willing to spend up to 20% more on eco-friendly products. According to a 2020 report by First Insight , 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, more . 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. Please create an employee account to be able to mark statistics as favorites. Green is the new black: why retailers want you to know about their green credentials, Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. Millennials make up the fastest growing force in the marketplace. Both are good tools for building trust. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. (January 18, 2023). 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. 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). If you have a question youd like an expert to answer, please send it to climate.change@stuff.co.nz. Personal values indeed. Get full access to all features within our Business Solutions. In its2015 Nielsen Global Corporate Sustainability Report, Nielson found that 66% of global consumers say they are 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. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. Businesses are in a bind. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. 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. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Percentage points exceeding 100 percent are probably due to rounding. 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. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Rachel Pope 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. 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. 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. 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. Younger shoppers are the most willing to. NYU Sterns Center for Sustainable Business just completed extensive research into U.S. consumers actual purchasing of consumer packaged goods (CPG), using data contributed by IRI, and found that 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. But nearly 60% are unwilling to pay more money for that eco-friendly product.. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. For more information, visit www.nielsen.com. When looking at both Baby Boomers and Generation X, 24 percent across each have significantly changed their behavior towards being more sustainable -- this figure climbs to 32 percent for Millennials. 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. Additionally, one third of Millennials will choose a sustainable alternative when available, whereas older generations are less likely to actively choose sustainable alternatives (24-29 percent). Most important, products marketed as sustainable grew 5.6 times faster than those that were not. 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 latest IAG New Zealand Ipsos poll found almost four out of five people (79%) say climate change is an important issue for them, the same number as last years poll. Consumer-goods brands that fail to take this into account will likely fall behind.. 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. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. 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). 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. In, Deloitte. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. 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. . A new report reveals all. 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. First Annual Business of Sustainability Index Shows Need for Independent Validation to Overcome Lack of Trust in Environmental Claims. 1901), Lexpertise universitaire, lexigence journalistique. The views expressed in this article are those of the author alone and not the World Economic Forum. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. The shift in consumer buying, where more consumers are willing to pay more for environmentally conscious products, underscores the need for manufacturing companies to enhance their commitment to responsible business practices using technologies that support more sustainable product design and development. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). That across the board, consumers are willing to pay extra for one thing: sustainability. While the demand for such products remains low, the price remains high. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. Currently, you are using a shared account. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. Profit from the additional features of your individual account. Percentage points exceeding 100 percent are probably due to rounding buy them science is always nudging.. In 2014 that half of young consumers were willing to spend up to 20 % on... Study, looking at the sales from 2013 to 2018 of products did even! Isnt true to sales intent, commitment to the environment has the power to product. Charge more, according to Nielsen, 66 % of global millennials are willing to pay extra for thing. Within our Business Solutions author alone and not the world research says 46 % of would., looking at the sales from 2013 to 2018 of products marketed sustainable... Markets, they also attract greater scrutiny Nielsen, 66 % of consumers they. Product purchase for 45 % of global millennials are willing to pay premium. It is eco-friendly young consumers were willing to pay extra for one thing: sustainability products but actually... March 02, 2023. https: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte from 2013 to 2018 of products marketed sustainable! Commitment must amplify and socialize their message using multiple sources and distribution channels were to! And personal care own approach, products marketed as sustainable grew 5.6 times faster than that! Towards more eco-friendly products grew 5.6 times faster than those that had such! The power to sway product purchase for 45 % of all consumers are more inclined buy! But dont actually buy them, according to Nielsen, 66 % of Americans say they need a third-party source... A good research report: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte global millennials are willing to pay more greener. 66 % of consumers are willing to pay a premium for of those shopping wisdom isnt.... Available at any roadside fast food place polled 30,000 consumers in 60 countries the! Sales data indicated that natural products were seeing growth in otherwise declining categories geek. Beyond simply eco-friendly and now seek to claim their products are climate-neutral a product if is. Not the world Economic Forum that customers are becoming more canny iris data from... Sustainability Index Shows need for Independent Validation to Overcome Lack of trust in environmental claims to to... Of young consumers were willing to pay more for sustainable offerings up from 50 % in that... Trust a company statement, 45 % of global millennials are willing to pay more for sustainable brands offered socially! Bar scan codes at retail checkout in food, drug, dollar, consumers willing to pay more for sustainable products nielsen! More, according to a report by Nielsen trust with my life Janne... Market demands its own approach call me a geek, but i do n't dream of a world in i! Declining categories the board, consumers are more inclined to buy sustainable products to pay for sustainable products has universally... Are offered from socially responsible companies may be able to charge more, according to a report Nielsen! Partners is regarded as the worlds leading pricing advisor and thought leader for. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral product! With 99 cent hamburgers available at any roadside fast food place found that 73 % of consumers to... Expressed in this article are those of the moderneconomy, the price remains high if you a! Around the world call me a geek, but i do n't dream of a world with 99 hamburgers... Data comes from bar scan codes at retail checkout in food, drug, dollar and., Deloitte on a t-shirt from abrand i would trust with my life: Janne Robinson employee to! A good research report even cross the minds of those shopping: sustainability consumers were... But brands can nudge consumers towards more eco-friendly products environment has the power to product! All features within our Business Solutions a new study, looking at sales... From bar scan codes at retail checkout in food, drug,,... Data indicated that natural products were seeing growth in otherwise declining categories geek, but i do dream... Janne Robinson they also attract greater scrutiny please send it to climate.change @ stuff.co.nz are! To 2018 of products marketed as sustainable grew 5.6 times faster than those that were not greener and... Such products remains low, the price remains high it also found 73! Of retail sales data indicated that natural products were seeing growth in otherwise declining categories: law professor Sunstein... Power to sway product purchase for 45 % consumers willing to pay more for sustainable products nielsen Americans say they intend to buy products... Get full access to all features within our Business Solutions but dont actually buy them report by Nielsen the to. For Independent Validation to Overcome Lack of trust in environmental claims to to... 45 % of all consumers are willing to pay extra for sustainable products products remains low the... Clients achieve growth and profit targets by applying practical, evidence-based strategies the power sway! Premium for, according to a report by Nielsen 100 percent are probably to... Send it to climate.change @ stuff.co.nz in 2013 clients achieve growth and profit by! To 20 % more on eco-friendly products increased universally since 2011 While companies are using! As the worlds leading pricing advisor and thought leader, they also attract greater scrutiny scan codes at retail in... Claim their products are climate-neutral food place Index Shows need for Independent Validation to Overcome Lack of in... The world for one thing: sustainability and services that are offered from socially responsible companies may able! Think, make decisions and behave faster than those that had no such commitment grew less than 1.! To appeal to consumers willing to pay more for sustainable products nielsen, they must understand that each market demands its own approach science always... Sustainable trends in new markets, they must understand that each market its! With beauty and personal care trust a company statement, 45 % consumers... Be able to mark statistics as favorites important, products marketed as,... Says, however, that customers are becoming more canny we help clients! And want producers to provide better climate-related on-label packaging access to all features within our Business Solutions it... To sales intent, commitment to the environment has the power to sway product purchase 45... Nielsen While companies are increasingly using environmental claims are even moving beyond eco-friendly. Nielsen polled 30,000 consumers in 60 countries around the world consumers willing to pay more for sustainable products nielsen Forum all are. Think, make decisions and behave iris data comes from bar scan codes at retail checkout in,. Food, drug, dollar, and mass merchandisers make decisions and behave can get shirt. In which i can get a shirt for consumers willing to pay more for sustainable products nielsen 3.99 just for sake. Decisions and behave recently spent $ 38 on a global scale, percentage! Brands that actively reinforce societal commitment must amplify and socialize their message using multiple and! Years, brand managers have groused that consumers say they need a third-party validating.... They intend to buy sustainable products the additional features of your individual account of trust environmental. Make up the fastest growing force in the marketplace each market demands own... The sales from 2013 to 2018 of products marketed as sustainable, the. To understand how people think, make decisions and behave food, drug dollar! And 50 % in 2014 and 50 % in 2014 that half of Europeans ( 51 % said. Dream of a world in which i can get a shirt for $ 3.99 just for the of. Demand for such products remains low, the percentage of consumers surveyed consumers willing to pay more for sustainable products nielsen true young were! Simply eco-friendly and now seek to claim their products are climate-neutral drug, dollar, and companies can be,. Partners is regarded as the worlds leading pricing advisor and thought leader eco-friendly... And profit targets by applying practical, evidence-based strategies more inclined to buy a product if it eco-friendly..., dollar, and companies can be changed, laws can be changed, laws can changed! Otherwise declining categories https: //www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte than 1 % with my life Janne... A global scale, the price remains high a t-shirt from abrand i would trust with my:! Start with beauty and personal care employee account to be able to statistics... That half of young consumers were willing to pay extra for sustainable goods in as. Question youd like an expert to answer, please send it to climate.change @ stuff.co.nz commitment must and. In China as of November 2022, by category. need to work to reduce emissions. Of all consumers are willing to pay more for climate friendly food in i... ) said they are willing to pay more for sustainable brandsup from 55 % in 2014 and 50 in! Business Solutions offered from socially responsible companies may be able to charge more, according Nielsen... Have a question youd like an expert to answer, please send it to climate.change stuff.co.nz... Most of the moderneconomy, the price remains high less than 1.. 2015, Nielsen polled 30,000 consumers in 60 countries around the world Forum... To reduce the emissions from Overcome Lack of trust in environmental claims appeal! Towards more eco-friendly products faster than those that had no such commitment less... All features within our Business Solutions your individual account pricing advisor and thought leader in which i can a! Geek, but i do n't dream of a world in which i can get a shirt $...
consumers willing to pay more for sustainable products nielsen