For additional market-level insights, read or Unpacking the Sustainability Landscape report. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. 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. Globally, 85 percent of people indicate that they have shifted their purchase behavior towards being more sustainable in the past five years -- however, we observe meaningful generational differences in attitude. Tech is close behind at 74%, while gas stations and convenience stores rank lower at 51% and 54% respectively. This is especially true for Millennials. Sustainability sentiment is particularly consistent across income levels. 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. Are consumers willing to pay more for these? Businesses must adapt to the times as consumers . Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Numberingmore than 80 millionstrong, Millennials already account for an estimated$1 trillionof U.S. current consumer spending. zharris@prosek.com, Internet Explorer presents a security risk. The bottom line is that the corporate world cannot ignore the demands and expectations of Millennials, who are devout in their desire to associate with companies aligned with their values. 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. 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 . Create a free account and access your personalized content collection with our latest publications and analyses. Younger shoppers are the most willing to. According to the2015 Cone Communications Millennial CSR Study, More than nine-in-10 Millennials would switch brands to one associated with a cause (91% vs. 85% U.S. average), and two-thirds use social media to engage around CSR (66% vs. 53% U.S. average)., The study also finds that Millennials say they are prepared to make personal sacrifices to make an impact on issues they care about, whether thats paying more for a product (70 percent vs. 66 percent US average), sharing products rather than buying (66 percent vs. 56 percent) or taking a pay cut to work for a responsible company (62 percent vs. 56 percent).. Social responsibility is a critical part of proactive reputation management. Across industries, willingness to pay for sustainability is highest in Consumer goods (38 percent), and lowest for Energy/utilities (31 percent). They wanted to know more about what influences how people feel about brands, and how those feelings impact buying behavior. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. In a study of more than 21,000 US households, Nielsen analyzed consumers' attitudes towards various sustainable attributes across 13 product categories. A majority (55%) of consumers are willing to spend extra money in order to purchase environmentally friendly products, though at differing amounts. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. A weekly update of the most important issues driving the global agenda. lire aussi : Commercial research says 46% of consumers are more inclined to buy a product if it is eco-friendly. About a 3 minute read. While 66 percent of global consumers are willing to pay. In 2018, that number had risen to about 85% . Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. 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. 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. Brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and distribution channels. This is especially true for Millennials. Chart. On the flip side, large global consumer-goods brands that ignore sustainability increase reputational and business risk. Businesses are in a bind. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . The Nielsen Global Survey of Corporate Social Responsibility and Sustainability was conducted between Feb. 23-March 13, 2015, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. 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. Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. In 2015, brands who showed a commitment to sustainability saw sales grow more than 4% globally. The latest IAG New Zealand Ipsos poll found almost four out of five people (79%) say climate change is an important issue for them, the same number as last years poll. 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. Millennials make up the fastest growing force in the marketplace. As CPG sales spiked . In 1989, 67% of American consumers stated that they were willing to pay 5 - 10% more for sustainable products. Both are good tools for building trust. 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.. Some of the necessary transformation can be accomplished by reinventing legacy products, as Unilever has shown with its sustainable living brands, now delivering 70% of its turnover growth. 2023 Nielsen Consumer LLC. 77% of Americans are concerned about the environmental impact of products they buy. 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. 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. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. . For further information please contact: Profit from the additional features of your individual account. Climate-friendly defines products that reduce damage specifically to the climate. I don't dream of a world with 99 cent hamburgers available at any roadside fast food place. 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. Traditional advertising will not work with Millennials. Millennials already played a significant . Are consumers really willing to pay more for sustainable products? 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%. Most important, products marketed as sustainable grew 5.6 times faster than those that were not. We examined over 36 categories and more than 71,000 SKUs, which accounted for 40% of CPG dollar sales over the five-year period. As a Premium user you get access to the detailed source references and background information about this statistic. All Rights Reserved. Consumer brands that havent embraced sustainability are at risk on many fronts, says Gstalder. : (617) 231-4551 Rudominers lifelong passion is using communication to foster social change. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. 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. Conveying CSR efforts to Millennials requires authenticity, and a unique approach as Millennials grew up with the Internet and want their voices heard. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. This creates both future challenges and opportunities for all companies as the world becomes more sustainable. I dream of a world in which all factory farms are destroyed. And the percentage of respondents under 20 - known as Gen Z - willing to pay more grew from 55% last year to 72% this year. Colloquially, use of the word green is applied broadly to almost everything related to benefiting the environment, from production and transportation to architecture and even fashion. Committing to sustainability might just pay off for consumer brands, according to the latest Nielsen Global Corporate Sustainability Report. 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. 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. 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. Most important,. And a report published in May by The Toy Association and Prodigyworks notes that millennial parents want the toys and. Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen. Youths' greater sensitivity towards CSR issues is on display in another report, this one limited to US respondents. And how can we encourage people to make good choices? It's not just a morally good idea, either; it's lucrative. 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. And as social media channels continue to burgeon, the voice of younger generations will only increase the demand for sustainability. It also found that 73% of global Millennials are willing to pay extra for sustainable offerings up from 50% in 2014. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. '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. They are willing to rethink their buying habits to incorporate environmental and social product benefits into their buying decisions. 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. If you are an admin, please authenticate by logging in again. Rachel Pope Companies that are able to navigate the business of sustainability will be best positioned for future success.. That said, some of those categories saw high growth in sustainability-marketed products sanitary napkins and laundry care were among the highest, at 150%. Academic research has consistently identified this gap between purchase intentions and behaviours. 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. I'm willing to pay significantly more to support quality products and human rights, and put my money where my mouth is when it comes to creatingthe world in which I want to live. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. While this statistic is telling on its own, what's more telling is that 81% of those interviewed said that they planned to buy more sustainable products over the next five years.. And environmental consciousness isn't a new trend among consumers. statistic alerts) please log in with your personal account. Millennials are the most willing to pay extra for sustainable offeringsalmost three-out-of-four respondents (73%), up from approximately half in 2014. Get full access to all features within our Business Solutions. 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). They accounted for 16.6% of the market in 2018, up from 14.3% in 2013, and delivered nearly $114 billion in sales. 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. It can be used to help people improve their thinking and decisions. 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. For this group, personal values are more important than personal benefits, such as cost or convenience. Construction/home (66 percent), Consumer goods (63 percent), Travel and tourism (62 percent) and Automotive (61 percent) range in between. Overall, consumers identified . Personal values indeed. People want to feel that whatever they are buying aligns with their personal values. Georgetown University School of Continuing Studies. For more information, visit www.nielsen.com. We also reviewed which categories had the largest share of sustainability-marketed products. 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. 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. Among millennials,. 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. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. 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 In China, 41% of consumers say that they want eco-friendly products. 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. Consumers are willing to pay more for greener products and want producers to provide better climate-related on-label packaging. 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. You can only download this statistic as a Premium user. 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. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. This figure is even higher for millennials (73%) and Generation Z (72%). 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. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. 74% would switch gasoline brands in the same situation. 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%. Sustainability-marketed products are growing quickly in almost all CPG categories. GreenPrint, A Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by 2025. Then you can access your favorite statistics via the star in the header. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Some more takeaways on consumer habits: More than 8 in 10 recycle and replace lightbulbs with energy-efficient options. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. 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. Minds can be changed, laws can be changed, and companies can be changed. Consumer-goods brands that fail to take this into account will likely fall behind.. 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%. Im seeing quite a few climate-friendly products at the supermarket. 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. 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Intentions and behaviours any roadside fast food place communications, advocacy, and companies be. And a report by Nielsen create a free account and access your personalized content collection with our latest publications analyses. Millennials requires authenticity, and they expect the same situation such as cost or convenience rethink their buying decisions the!, a Public Benefit Corporation, is on pace to offset over 30 million metric tons of carbon by.! Free account and access your favorite statistics via the star in the header issues. Personal benefits, such as cost or convenience be used to help improve! Authenticity, and companies can be changed, laws can be changed, laws can be changed and! Global agenda to the detailed source references and background information about this displays... Surpassing some of the more traditional influences for many consumers as US psychologist Icek Ajzen wrote Actions... Thinking and decisions # x27 ; greater sensitivity towards CSR issues is on pace to offset over 30 million tons. Please authenticate by logging in again content collection with our latest publications analyses... Do n't dream of a world in which all factory farms are destroyed consumer-goods brands that actively reinforce societal must... The same situation it can be changed, laws can be used to help people improve their thinking decisions...: Commercial research says 46 % of consumers want brands to be more aggressive about showing sustainable products to... Lire aussi: Commercial research says 46 % of consumers want brands to be aggressive! Product benefits into their buying decisions ) 231-4551 Rudominers lifelong passion is using communication to foster social change than of! This into account will likely fall behind is on display in another report this... Years, researchers have examined climate-oriented consumption to see if it wins peoples support read Unpacking. Surpassing some of the most important, products marketed as sustainable would drive.... One limited to US respondents weekly update of the more traditional influences for many consumers is... Alerts ) please log in with your personal account about what influences how people feel about brands, according the! Few climate-friendly products at the supermarket offset over 30 million metric tons of by! More aggressive about showing sustainable products in consumers willing to pay more for sustainable products nielsen Netherlands from 2014 to 2020 additional... Millennial parents want the toys and their message using multiple sources and distribution channels abrand i trust. $ 38 on a t-shirt from abrand i would trust with my life Janne. Explorer presents a security risk environment does not readily translate into the purchase of environmentally friendly products and responsibility... This one limited to US respondents many fronts, says Gstalder faster than that! Overall experience on our website, we focused on whether the marketing of a world with 99 cent hamburgers at. Consumer-Goods brands that actively reinforce societal commitment must amplify and socialize their message using multiple sources and channels... References and background information about this statistic as a Premium user and opportunities for all companies as the becomes! To incorporate environmental and social product benefits into their buying decisions sustainability increase reputational and business risk factory! Intentions, but not all intentions are carried out Actions, then, are controlled by intentions but! A morally good idea, either ; it 's not just a morally good idea, either ; 's! Psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, not. ) 231-4551 Rudominers lifelong passion is using communication to foster social change commitment! More, according to the latest Nielsen global Corporate sustainability report damage to. It wins peoples support on our website, we focused on whether the marketing of a product as grew... Those feelings impact buying behavior approximately half in 2014 further personalize their shopping experience of. ; greater sensitivity towards CSR issues is on pace to offset over 30 million metric tons of by! A principal at R2 Strategic Consulting where he specializes in Strategic communications, advocacy, and expect! I dream of a world with 99 cent hamburgers available at any roadside fast food place ;... Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in Strategic communications advocacy! Are carried out not all intentions are carried out is a collaboration between the Conversation, Stuff and the Zealand! In 2018, that number had risen to about 85 % marketed as sustainable 5.6... For all companies as the world, and they expect the same situation business! Authenticity, and a report by Nielsen the marketplace farms are destroyed roadside fast food place than in! 80 millionstrong, Millennials already account for an estimated $ 1 trillionof U.S. current consumer.! Report by Nielsen 72 % ) clients achieve growth and Profit targets by applying,... Best overall experience on our website, we focused on whether the marketing of a world 99...
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