Looking at web sites for information on business and manufacturing practices. A majority of people have doubts when companies say they are environmentally friendly, with 53% of Americans never or only sometimes believing such claims. 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. Businesses that under-appreciate the need for CSR do so at their peril. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. I dream of a world in which all factory farms are destroyed. 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%). The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. According to Chicago-based Nielsen's 2019 "Protein Proliferation" report, 19% of consumers surveyed said that they intended to increase their consumption of meat and seafood more than any other protein group. She's vocal about the fact that it costs a lot more than shirts from a company like H&M specifically because she only uses sustainable goods and ethical practices when it comes to the workers. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . Nielsen Those earning $20,000 or less are actually 5% more willing than those with incomes greater than $50,000 to pay more for products and services that come from companies who are committed to positive social and environmental impact (68% vs. 63%). Millennials already played a significant . Deloitte. 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. And investors should support companies in making the investments needed for the pivot. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Saving biodiversity: why our mental and physical health depends on it. 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. Then you can access your favorite statistics via the star in the header. The Daily Digest for Entrepreneurs and Business Leaders, 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type of Product. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. 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. All Rights Reserved. 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. Given the evidence that consumer tastes are changing, an attitude of Why mess with a recipe that has worked well over the last 40 years? is the wrong one to take. Register in seconds and access exclusive features. 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 . Rachel Pope Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. While 66 percent of global consumers are willing to pay. Chart. A weekly update of the most important issues driving the global agenda. 77% of Americans are concerned about the environmental impact of products they buy. zharris@prosek.com, Internet Explorer presents a security risk. What do these findings mean for corporate managers and investors? Gary Mortimer ne travaille pas, ne conseille pas, ne possde pas de parts, ne reoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a dclar aucune autre affiliation que son organisme de recherche. Create a free account and access your personalized content collection with our latest publications and analyses. While the survey respondents were answering questions . Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. Consumers' demand for sustainable products is increasing. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. It can be used to help people improve their thinking and decisions. Consumers are voting with their dollars against unsustainable brands. 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. Businesses must adapt to the times as consumers . For instance, while the overall shampoo category saw declines of 3.4% over a year long period ending April 2018, natural shampoos, which own 11.2% of the value share, are steadily growing at 2.2%. Traditional advertising will not work with Millennials. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. This sum will continue to grow exponentially as more Millennials reach peak buying power. Hence, despite environmental concern and the positive attitude of customers towards sustainability and green products, its estimated the market share of green products will reach only 25% of store sales by 2021. Its hard to ignore the siren call to protect the planet. Rudominers lifelong passion is using communication to foster social change. For further information please contact: She's a strong young feminist poet, an inspiration, and I trust her product because she was open about how she sourced the materials for it. 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). 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). And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Simple economies of scale also impact on price. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. ", 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. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. 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. Surface Studio vs iMac - Which Should You Pick? 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. On average, more than a one third (34 percent) of the population is willing to pay more for sustainable products or services, and those willing to pay more would accept a 25 percent premium on average. 75% of millennials are willing to pay extra for sustainable products.3Coffee cups, palm oil, and single-use plastics are some recent products to face public discussion, which leaves businesses rethinking both the sustainability of their materials and processes, and the environmental impact and recyclability of their products. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. But nearly 60% are unwilling to pay more money for that eco-friendly product. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. In the US, this number is just over the global average at 61 percent. Companies have used this conventional wisdom as justification for not making their products more sustainable. Others are working for or supporting organizations dedicated to social and environmental change. You need a Statista Account for unlimited access. Complete study findings are available upon request, including country splits. 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. 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). A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. 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. Vietnamese consumers are the most socially-conscious among Southeast Asians, with 86 percent expressing their willingness to pay extra for products and services from firms which are committed to positive social and environmental impact, a new Nielsen survey found. I can attest to the fact that sustainability isn't just something I "sorta kinda" consider--it's one of the primary reasons I either buy or don't buy from consumer brands. 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. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Nielsen's 2014 Global Survey on Corporate Social Responsibility, released Tuesday, shows that 55 percent of global online consumers across 60 countries are willing to pay more for products and services from companies that are committed to positive social and environmental impact. 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. So when it comes to purchasing, they are doing their homework. 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. This isn't a pipe dream. 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. In more than 90% of the CPG categories, sustainability-marketed products grew faster than their conventional counterparts. Call me a geek, but I do love a good research report! GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. 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 470-788-0718 In China, 41% of consumers say that they want eco-friendly products. A survey of 51 retail senior-level . While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. Droits d'auteur 20102023, The Conversation France (assoc. The first-ever edition of the company's Business of Sustainability Index found that nearly two-thirds (64%) of Americans are willing to pay more for sustainable products but most (74%). They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. When looking at food items like coffee, I want to know first that it's Fair Trade. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. 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. But in a increasingly interconnected world, it's starting to be normal to think critically about where things come from and whether the company you're supporting is a responsible corporate citizen. They found that: 61% of consumers would be willing to pay more for eco-friendly DIY products. As a result, many consumers have adopted more sustainable behaviors. 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 is especially true for Millennials. For this group, personal values are more important than personal benefits, such as cost or convenience. "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. As soon as this statistic is updated, you will immediately be notified via e-mail. Sustainability sentiment is particularly consistent across income levels. Our analysis did not include the term natural (which is ubiquitous but means nothing) or marketing claims related to social causes or charities. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. 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). Use Ask Statista Research Service, among residents in China's tier-1 to tier-5 cities. 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%. 9. But brands can nudge consumers towards more eco-friendly products. You can only download this statistic as a Premium user. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? In, Deloitte. Seventh Generation, Sundial Brands, and Pukka Herbs. 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. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims. e-mail: rachel.pope@simon-kucher.com Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. On Earth Day 2020, the organisation Climate Neutral an independent non-profit organisation working to decrease global carbon emissions confirmed 103 brands had completed its certification process in 2020 and 50 other brands were still in the process. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. This indicates an opportunity for consumer-goods brands that have already built a high level of trust with consumers to evaluate where best to introduce sustainable products into the market to drive growth, says Carol Gstalder, senior vice president, Reputation & Public Relations Solutions, Nielsen. Nielsen combines sustainability into free-from, clean, simple, sustainable and . Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. There are several reasons for this. 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