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. The future for CPG, and increasingly for other categories such as apparel, is sustainable. All Rights Reserved. Most important,. Droits d'auteur 20102023, The Conversation France (assoc. "Our sustainability. not how pretty the blush is. You need a Statista Account for unlimited access. Wed suggest they follow the data. We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. Green is the new black: why retailers want you to know about their green credentials. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. Saving biodiversity: why our mental and physical health depends on it. A new study, looking at the sales from 2013 to 2018 of products marketed as sustainable, finds the conventional wisdom isnt true. Products that we deemed sustainability-marketed in 2018 were considered sustainability-marketed in 2013 too, as we were unable to examine 2013 packaging for all products. As CPG sales spiked . Indeed, one recent report revealed that certain categories of products with . 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). 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. Consumers expect more than ever from the brands they buy and increasingly are rewarding companies whose services and products are both good for them and good for society. 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. Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category [Graph]. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. 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. 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). Among millennials,. e-mail: rachel.pope@simon-kucher.com The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. Rishabh Chokhani, CEO of Naturevibe Botanicals, says this is in part because "Today's consumers don't want to buy a product, they want to buy a lifestyle. Its hard to ignore the siren call to protect the planet. 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. 470-788-0718 5 Ways to Connect Wireless Headphones to TV. Please create an employee account to be able to mark statistics as favorites. 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). Show publisher information 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. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. . Climate-friendly defines products that reduce damage specifically to the climate. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. 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. All Rights Reserved. GreenPrint Rachel Pope 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. Voir les partenaires de TheConversation France. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. According to our Consumers Buy The Change They Wish To See in The World report, we found that natural and organic ingredients and certifications serve as the entry level point for nearly every market when it comes to sustainability attributes consumers are searching for. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Traditional advertising will not work with Millennials. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. In Taiwan, for example, where 88% of surveyed consumers said that it is extremely or very important that companies implement programs to improve the environment, there is evidence of a growing trend in natural in personal care. 77% of Americans are concerned about the environmental impact of products they buy. 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. 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. 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. 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 Paying attention to public opinion on specific brands in the news or on social media. As soon as this statistic is updated, you will immediately be notified via e-mail. 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 . I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. Brands can bring their CSR efforts to life through authentic storytelling. Sustainability sentiment is particularly consistent across income levels. to incorporate the statistic into your presentation at any time. The study surveyed 10,281 consumers across 17 countries: USA (N=1,062), Germany (N=1,022), Denmark (N=771), Sweden (N=757), Brazil (N=539), China (N=516), Japan (N=516), Spain (N=515), Switzerland (N=514), UK (N=513), Australia (N=510), Austria (N=510), France (N=510), the Netherlands (N=510), Norway (N=506), Italy (N=506), UAE (N=504), including representative quotas set for age, gender, living area, education level, employment status & income level. By 2021, consumers are expected to spend $150 billion on sustainable goods. 315-409-9435 A weekly update of the most important issues driving the global agenda. Original survey question: How much of a premium are you willing to pay for green consumption (i.e. Percentage points exceeding 100 percent are probably due to rounding. ", 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. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. Those that had no such commitment grew less than 1%. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. What is the Green List and how can it help protect the worlds natural wonders? Companies that are able to navigate the business of sustainability will be best positioned for future success.. 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 . 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. All these terms are used in labelling to make us feel good if we buy products claimed to minimise harm to the planet and the environment. Consumers have some understanding of what makes a product sustainable but it is not necessarily a consideration when making a purchase Although the majority of consumers recognise what makes a product sustainable i.e. 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. When browsing beauty products, my first question is, "Is it cruelty-free?" Consumers want #sustainable packaging - and most of them would pay more for it. 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. Given that sustainability issues vary by category, we also assessed whether a claim concerned a material environmental or social issue for that category. I don't dream of a world full of cheap lip gloss that was tested on animals; I dream of one in which that kind of beauty product is illegal everywhere, period. 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, 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. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. While the demand for such products remains low, the price remains high. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. The rise in the percentage of respondents under 20, also known as Generation Z, who are willing to pay more was equally strongfrom 55% of total respondents in 2014 to 72% in 2015. 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consumers willing to pay more for sustainable products nielsen