A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and The hierarchy among drivers of consumer loyalty and brand performance is changing, says Farraj. If you have a question youd like an expert to answer, please send it to climate.change@stuff.co.nz. You need a Statista Account for unlimited access. While 66 percent of global consumers are willing to pay. 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. Consumer-goods brands that fail to take this into account will likely fall behind.. 77% of Americans are concerned about the environmental impact of products they buy. That's why we're seeing a shift towards sustainable farming, farm-to-table, and organic botanical ingredients.". 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. In more than 90% of consumer packaged goods categories, sustainability-marketed products grew faster than their conventional counterparts. Academic research has consistently identified this gap between purchase intentions and behaviours. 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. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. 315-409-9435 Please create an employee account to be able to mark statistics as favorites. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. The Nielsen Global Survey on Corporate Social Responsibility polled more than 29,000 Internet respondents in 58 countries. From there, it becomes more specific and fragmented. 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. Georgetown University School of Continuing Studies. Both are good tools for building trust. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. All rights reserved. Many sustainable trends in new markets start with beauty and personal care. Among millennials,. Consumers want #sustainable packaging - and most of them would pay more for it. 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. I dream of a world in which all factory farms are destroyed. Green is the new black: why retailers want you to know about their green credentials. 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. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. 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. Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. New York-based Nielsen forecasts the market to reach somewhere between $142.4 billion and $150.1 billion by 2021. And investors should support companies in making the investments needed for the pivot. While attitudes vary across generations, countries, and industries, 85% of consumers have become greener in their purchasing in recent years. This figure is even higher for millennials (73%) and Generation Z (72%). Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. Our analysis did not include the term natural (which is ubiquitous but means nothing) or marketing claims related to social causes or charities. Are you interested in testing our business solutions? To trust a company statement, 45% of Americans say they need a third-party validating source. Rudominers lifelong passion is using communication to foster social change. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. Its hard to ignore the siren call to protect the planet. 1901), Lexpertise universitaire, lexigence journalistique. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. Consumers' demand for sustainable products is increasing. While the survey respondents were answering questions . 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. But brands can nudge consumers towards more eco-friendly products. 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. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. An online survey of more than 1,000 consumers took place in July and found 68% of respondents said they were willing to pay more for sustainable products. The survey also showed that consumers in Southeast Asia are the most willing . 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. Products must meet similar standards (ISO 14020 and ISO 14024). This button displays the currently selected search type. 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. Retail data backs up the importance of these influencers. For years, researchers have examined climate-oriented consumption to see if it actually wins consumer support. Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, Deloitte. 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). They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. Simon-Kucher & Partners is regarded as the worlds leading pricing advisor and thought leader. 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. A survey of 51 retail senior-level . This likely depressed the growth numbers, as many brands have become more sustainable over time. Design The Consumer Sustainability Survey (2019) found that 72% of consumers buy more environmentally-friendly products than five years ago. 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. 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). Are consumers really willing to pay more for sustainable products? 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. www.simon-kucher.com, Internet Explorer presents a security risk. Millennials represent the consumer market of the future, and it behooves corporations to read the tea leaves. Our analysis looked at products on-pack communication about their sustainability. For further information please contact: "Share of Consumers Who Were Willing to Pay More for Sustainable Goods in China as of November 2022, by Category. Traditional advertising will not work with Millennials. In a free market economy, it is very difficult to force people to pay more for products. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. According to a June 2014 Nielsen study , 55% of global online consumers "are willing to pay more for products and services from companies that are committed to positive social and environmental impact." In fact, as early as 1992, the European Commission established the EU Ecolabel , a Europe-wide voluntary environmental labeling scheme that . 470-788-0718 A weekly update of the most important issues driving the global agenda. Corporate leadership should no longer give brand managers a pass when they claim that there is no demand for sustainable products. Almost three quarters of the . Nearly three . Defending and preserving our planet is not only the right thing to do, its good business. 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. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Voir les partenaires de TheConversation France. Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. '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. Are consumers willing to pay more for these? In 2015, brands who showed a commitment to sustainability saw sales grow more than 4% globally. This is especially true for Millennials. We used clothing brand Reformation as a case study of sorts and spoke with experts in consumer behavior and the fashion industry to better understand the sustainability movement, why consumers love it, and how more brands can do their part. Show publisher information Consumers are voting with their dollars against unsustainable brands. 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). Seventh Generation, Sundial Brands, and Pukka Herbs. Looking at web sites for information on business and manufacturing practices. They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Sustainability-marketed products are growing quickly in almost all CPG categories. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. . 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. Third-party validation helps certify progress in the eyes of consumers, and the process of carbon offsetting which is easy to measure and communicate helps create tangible benchmarks. Businesses must adapt to the times as consumers . This is especially true for Millennials. Rachel Pope Mr Harrison says, however, that customers are becoming more canny. Our own 2019 report, " The State of Consumer Spending: Gen Z . To use individual functions (e.g., mark statistics as favourites, set 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. According to the findings, 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly. And how can we encourage people to make good choices? I don't dream of a world in which I can get a shirt for $3.99 just for the sake of that. 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. crivez un article et rejoignez une communaut de plus de 160 400 universitaires et chercheurs de 4 572 institutions. But research continues to show few consumers who report positive attitudes toward eco-friendly products actually follow through with their wallets. Can changing your mindset change everything? Nature is worth $44 trillion to the global economy, according to a recent World Economic Forum estimate. Call me a geek, but I do love a good research report! One overwhelming conclusion of the report? 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%. 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. Consumers also see themselves as the agents of change, implying that the call to action for companies to adapt has never been more urgent. More than half (56%) of Americans would use a credit card that could calculate and offset the environmental footprint of products purchased. lire aussi : "Share of consumers who were willing to pay more for sustainable goods in China as of November 2022, by category." 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. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the worlds population. Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. As companies look to break into new markets, they must understand that each market demands its own approach. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. 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 this category, catering to consumer demand for a more sustainable shampoo not only benefits the environment, but it also bolsters the bottom line of companies smart enough to give them what they want. Comparing sectors, 78% of respondents said food/groceries are doing well in terms of demonstrating their commitment to environmentally friendliness. For more information, visit www.nielsen.com. 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. But nearly 60% are unwilling to pay more money for that eco-friendly product.. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Michele Koch 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. Climate-friendly defines products that reduce damage specifically to the climate. According to the report, sales of consumer goods from brands with a demonstrated commitment to sustainability have grown more than 4% globally in the past year, while those without grew less. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. 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. 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. Surface Studio vs iMac - Which Should You Pick? Indeed, one recent report revealed that certain categories of products with . Consumers are also willing to pay more for chocolate products that are free-from 'undesirable' or artificial ingredients, a subset of products that makes up 15.2% of the overall chocolate category . The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. Zach Harris 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. You need at least a Starter Account to use this feature. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. They expect a two-way, open dialogue with companies and their brands. A substantial portion of consumers are currently willing to pay for sustainability, demonstrating that there is a market for mission-driven green companies and why we see a rise in sustainable companies around the world. Interestingly, of the people that are willing to pay a sustainability premium, the premium amount is lowest for Consumer goods (22 percent premium on average) it is highest for Financial services (27 percent premium on average). Millennials want to know what companies are doing to make the world a better place. 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). 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. A balanced approach is key for brand communicators, with the emphasis on demonstrating good deeds versus self-serving promotion.. It is no secret that companies must be responsive to customer demands and expectations if they want to survive. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). 2023 Nielsen Consumer LLC. The Global Sustainability Study 2021*, conducted by global strategy and pricing consultancy Simon-Kucher & Partners, reveals significant global paradigm shifts in how consumers view sustainability and the associated generational differences in willingness to pay for sustainable products and services. Nielsen combines sustainability into free-from, clean, simple, sustainable and . 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. Some brands are even moving beyond simply eco-friendly and now seek to claim their products are climate-neutral. We made no attempt to assess if products marketed as sustainable were, in fact, sustainable. not how pretty the blush is. 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. This may give competitors of all sizes, the opportunity to build trust with the predominantly young, socially- conscious consumer looking for products that align with their values.. how much more are you willing to pay compared to regular goods) when purchasing the following categories? A 2015 global survey by Nielsen found that 66 per cent of respondents were willing to pay more for sustainable goods. 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