Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. 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). 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. One overwhelming conclusion of the report? While companies are increasingly using environmental claims to appeal to consumers, they also attract greater scrutiny. We see the impact of similar sentiment around shower gel, a category where naturals own 10.3% of the value share, and the overall category saw sales decline 0.8%. 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. 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. 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. 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. Consumersparticularly Millennialsincreasingly say they want brands that embrace purpose and sustainability. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. 76% of Americans would switch their preferred packaged goods brand if they were offsetting carbon emissions. 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. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. 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. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. 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). As soon as this statistic is updated, you will immediately be notified via e-mail. Show publisher information 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. 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. The survey reports that 58% of Europeans consider climate impact . 2015 Nielsen Global Corporate Sustainability Report, 2015 Cone Communications Millennial CSR Study. 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. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. Studies show that people are geared towards using sustainable products more than others. Complete study findings are available upon request, including country splits. Prosek Partners This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Professor of Marketing and Consumer Behaviour, Queensland University of Technology. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. In other words, I'm willing to spend more (a lot more, in fact) to know that what I'm spending my money on is actually good for the earth and the people on it. [Online]. And its no longer just wealthy suburbanites in major markets willing to open their wallets for sustainable offerings. This figure is even higher for millennials (73%) and Generation Z (72%). But the results should be interpreted cautiously. GreenPrint Inherently skeptical, Millennials will punish companies on social media not deemed to be fully transparent as well as those that pay lip service to CSR and causes important to them. You need at least a Starter Account to use this feature. 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. 74% would switch gasoline brands in the same situation. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. 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. Currently, you are using a shared account. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. This is the result of a representative survey that we commissioned from INNOFACT. 77% of Americans are concerned about the environmental impact of products they buy. 75% of Millennials are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers. 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. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Personal values indeed. 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). When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. 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%. (January 18, 2023). This isn't a pipe dream. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. Please create an employee account to be able to mark statistics as favorites. Rachel Pope Nudge theory is used to understand how people think, make decisions and behave. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. 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. 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 . Consumers from 60 countries were surveyed for this report. 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. Brands can bring their CSR efforts to life through authentic storytelling. 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. 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. Good Environmental Choice Australia is a similar organisation. 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. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. In, Deloitte. 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. "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." 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. This behaviour isn't just limited to the wealthy in big economies. Its hard to ignore the siren call to protect the planet. Rudominers lifelong passion is using communication to foster social change. Younger shoppers are the most willing to. Get full access to all features within our Business Solutions. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. A survey of 51 retail senior-level . Saving biodiversity: why our mental and physical health depends on it. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. As a result, e-commerce businesses that prioritize environmentally-friendly practices will likely see a competitive advantage. 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. Companies that are able to navigate the business of sustainability will be best positioned for future success.. Why cities should be fully recognized stakeholders within the UN system, This Architect Says Sustainable Timber Could Be The Future Of Our Cities, 3 solutions helping net-zero aviation take off, is affecting economies, industries and global issues, with our crowdsourced digital platform to deliver impact at scale. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. Then you can access your favorite statistics via the star in the header. Theres a noticeable break between generations, with 71% and 66% of Millennials and Gen Z willing to do so, compared to only 50% Gen X, 46% of Boomers and 39% Silent Generation. 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. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. The survey is conducted among 48 percent of female and 52 percent male respondents. 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%. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. But brands can nudge consumers towards more eco-friendly products. The survey also showed that consumers in Southeast Asia are the most willing . In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. 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. Weve been on this journey for a while, but the clock is ticking and failure to think through the implications could have long-term consequences for traditional firms., Across industries and countries, sustainability is a significant purchase criterion -- though price and quality continue to dominate. not how pretty the blush is. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. : (617) 231-4551 5 Ways to Connect Wireless Headphones to TV. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Among millennials,. Reports, such as Nielsen Insights , suggest the majority (73 percent) of people would change their consumption habits to reduce their impact on the environment, and almost half . 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 . 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. For more information, visit www.nielsen.com. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. Georgetown University School of Continuing Studies. As economists say, as price lowers, our willingness and ability to buy an item increase. An Inc. 5000 company and a member of 1% Percent for the Planet, GreenPrints turnkey offerings help companies meet sustainability goals while increasing brand value and customer loyalty making it easy for businesses to do well by doing good. Consumers across regions, income levels, and categories are willing to pay more, if doing so ensures they remain loyal to their values. 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. This desire for sustainable products among Gen Z is robust. Millennials already played a significant . In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. Surface Studio vs iMac - Which Should You Pick? 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. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. Many sustainable trends in new markets start with beauty and personal care. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. ", 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. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? Deloitte. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. 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. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. 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%. 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. 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. If you are an admin, please authenticate by logging in again. 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. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. 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. 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%). For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Percentage points exceeding 100 percent are probably due to rounding. Climate-friendly defines products that reduce damage specifically to the climate.
consumers willing to pay more for sustainable products nielsen