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). As a Premium user you get access to the detailed source references and background information about this statistic. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. While the demand for such products remains low, the price remains high. You can unsubscribe at any time using the link in our emails. It can be used to help people improve their thinking and decisions. 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. 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. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). 1901), Lexpertise universitaire, lexigence journalistique. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. This likely depressed the growth numbers, as many brands have become more sustainable over time. Most important,. CSR can build brand loyalty, raise awareness, and strengthen reputations, or it can have the opposite effect. Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. 2023 Nielsen Consumer LLC. zharris@prosek.com, Internet Explorer presents a security risk. 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. 5 Ways to Connect Wireless Headphones to TV. A paid subscription is required for full access. Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. Can changing your mindset change everything? Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. Consumer-goods brands that fail to take this into account will likely fall behind.. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. 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. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. A new report reveals all. 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. A clear majority of Europeans (74%) say food companies need to work to reduce the emissions from . I dream of a world in which all factory farms are destroyed. 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 Businesses that under-appreciate the need for CSR do so at their peril. And investors should support companies in making the investments needed for the pivot. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Design Statista. Companies must act now to avoid obsolescence in the future. Are consumers willing to pay more for these? I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. That across the board, consumers are willing to pay extra for one thing: sustainability. 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. Designed by Elegant Themes | Powered by WordPress, 66% of survey respondents are willing to pay more for sustainable goods, up from 55% in 2014, and 50% in 2013. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. Those that had no such commitment grew less than 1%. This is a relatively new perspective for consumers. Reports such as Nielsen Insights suggest the majority (73%) of consumers would change their consumption habits to reduce their impact on the environment, and almost half (46%) would switch to environmentally friendly products. Businesses must adapt to the times as consumers . Nudge theory is used to understand how people think, make decisions and behave. Pay more, waste less: 32% of consumers would pay more for a product from a brand that they believe is committed to sustainability. In, Deloitte. 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 . Millennials want to know what companies are doing to make the world a better place. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? Prosek Partners 77% of Americans are concerned about the environmental impact of products they buy. 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. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. Products must meet similar standards (ISO 14020 and ISO 14024). When it comes to purchase behavior, its become abundantly clear that consumers care. While the survey respondents were answering questions . Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. Im seeing quite a few climate-friendly products at the supermarket. 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. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. (1) Background: The pressure that agricultural systems' intensive management exerts on the environment concerns society. e-mail: rachel.pope@simon-kucher.com In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. statistic alerts) please log in with your personal account. 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). A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. 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 . 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. More demand would mean more production and lower unit price costs. Rachel Pope One overwhelming conclusion of the report? In the past year alone, 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%. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. Michele Koch 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). And how can we encourage people to make good choices? In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. Both are good tools for building trust. 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. Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. In 2015, Nielsen polled 30,000 consumers in 60 countries around the world. 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. In a study of 30,000 consumers across 60 countries, Nielsen found that nearly 2/3 of consumers globally are willing to pay more for sustainable goods and that is on the rise. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. The relative importance of sustainability during the purchase process will continue to increase. 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. What do these findings mean for corporate managers and investors? 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. 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. Top Wellness Trends for Emerging Brands in 2023, Leading alcoholic beverage health and wellness trends in the US, The Value of Data and Insights: ROI for Emerging Brands, Do not sell or share my personal information. Feb 28, 2023. 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. January 18, 2023. 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 . 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%). 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. Sustainability is a worldwide concern that continues to gain momentumespecially in countries where growing populations are putting additional stress on the environment, says Grace Farraj, senior vice president, Public Development & Sustainability, Nielsen. Seventh Generation, Sundial Brands, and Pukka Herbs. It's not just a morally good idea, either; it's lucrative. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Using multiple communication methods is important to demonstrate good deeds, such as third-party validation (news coverage), annual reports, affiliation with a respected non-profit or civic organization, employee volunteerism, advertising, or reporting actual work in the community on a web site. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. not how pretty the blush is. For fifteen years, Rudominer has operated on the front lines and behind the scenes of numerous communications campaigns, providing strategic counsel to public officials, corporations, trade associations, and non-profits. Companies that are able to navigate the business of sustainability will be best positioned for future success.. On a global scale, the percentage of consumers willing to pay a premium for. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. So when it comes to purchasing, they are doing their homework. 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). Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. But the results should be interpreted cautiously. 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. 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. Consumers want #sustainable packaging - and most of them would pay more for it. Consumers' demand for sustainable products is increasing. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. 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. Studies show that people are geared towards using sustainable products more than others. Its about exploring your trustworthy methods of communication, then selecting one that aligns with your objectives.. The future for CPG, and increasingly for other categories such as apparel, is sustainable. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. 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. Defending and preserving our planet is not only the right thing to do, its good business. Our own 2019 report, " The State of Consumer Spending: Gen Z . 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. 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 didnt even make the top five. 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. 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. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and For example, one study found Spanish consumers were willing to pay 2237% more for green products, but Japanese consumers were only willing to pay 822% more for green products. To use individual functions (e.g., mark statistics as favourites, set Millennials make up the fastest growing force in the marketplace. What is the World Economic Forum doing about the circular economy? Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. I dream of a world in which clothing is more expensive across the board, but there are no more sweatshops anywhere, and no more slash-and-burn. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 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