In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. This sum will continue to grow exponentially as more Millennials reach peak buying power. Looking at web sites for information on business and manufacturing practices. 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. According to Nielsen, 66% of all consumers are willing to pay more for sustainable brands. Complete study findings are available upon request, including country splits. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. 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. 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). Businesses that under-appreciate the need for CSR do so at their peril. In one survey, 66% of all respondents, and 75% of millennial respondents, said they consider sustainability when making a purchase. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. I dream of a world in which all factory farms are destroyed. 65% would be willing to spend up to 20% more on eco-friendly products. All rights reserved. In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. 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. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 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. For this group, personal values are more important than personal benefits, such as cost or convenience. 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. 2023 Nielsen Consumer LLC. 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. . A new report reveals all. But brands can nudge consumers towards more eco-friendly products. Statista. not how pretty the blush is. I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. Almost three quarters of the . 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. Most important,. Show publisher information 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. A survey by Nielsen found that 66% of consumers are willing to pay more for sustainable products. For most of the history of the moderneconomy, the sourcing of products didn't even cross the minds of those shopping. Profit from the additional features of your individual account. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. It's not just a morally good idea, either; it's lucrative. Millennials want to know what companies are doing to make the world a better place. This isn't a pipe dream. "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 offerings--almost three-out-of-four respondents," says Nielsen. 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. Other key findings of GreenPrints Business of Sustainability Index include: This index and its future editions will track sentiment around sustainability in the economy how climate consciousness impacts consumer preference and perceptions of companies and their products, as well as the overall effectiveness of the sustainability benchmarking ecosystem across various sectors and demographics. Millennials make up the fastest growing force in the marketplace. Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. A weekly update of the most important issues driving the global agenda. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. 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 Others are working for or supporting organizations dedicated to social and environmental change. 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. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). What is the World Economic Forum doing about the circular economy? They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. As economists say, as price lowers, our willingness and ability to buy an item increase. 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. The legacy companies that will thrive are those that accept this shift and are willing to pivot, such as PepsiCo and Unilever. 1901), Lexpertise universitaire, lexigence journalistique. Access to this and all other statistics on 80,000 topics from, Show sources information Feb 28, 2023. As a Premium user you get access to background information and details about the release of this statistic. Checking labels before buying. Speaking with: law professor Cass Sunstein, on why behavioural science is always nudging us. In 2018, that number had risen to about 85% . Surface Studio vs iMac - Which Should You Pick? Jun 27, 2014 The willingness to pay for sustainable products has increased universally since 2011. Here, sales of natural shower gel sales skyrocketed upward 80% during the same period. . And investors should support companies in making the investments needed for the pivot. Personal values indeed. It can be used to help people improve their thinking and decisions. Small brands in this space are also attracting the bigger players attention Unilever has purchased brands with loyal followings such as Seventh Generation, Sundial Brands, and Pukka Herbs. 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. Ultimately, the research that evaluates consumers willingness to pay more for green products has been mixed. As a result, many consumers have adopted more sustainable behaviors. 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. While the survey respondents were answering questions . "Our sustainability. 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. People want to feel that whatever they are buying aligns with their personal values. 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. Consumers want #sustainable packaging - and most of them would pay more for it. www.simon-kucher.com, Internet Explorer presents a security risk. Our analysis looked at products on-pack communication about their sustainability. This statistic presents the results of an online survey conducted from February 17 to March 7, 2014. 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. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. 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