Please create an employee account to be able to mark statistics as favorites. Access to this and all other statistics on 80,000 topics from, Show sources information Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. 6 takeaways from the worlds biggest cultural policy gathering, Putting Solar Panels On Farms Makes Sheep Happier. 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. And investors should support companies in making the investments needed for the pivot. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. 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. In 2013, India banned all animal testing, then banned even the import of beauty products that engage in animal testing. Consumers from 60 countries were surveyed for this report. While the survey respondents were answering questions . Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power. 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 . Georgetown University School of Continuing Studies. 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. 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. Commitment to either social value or the consumers community are also important (each influencing 43% and 41% of respondents, respectively). Nielsen reported in 2014 that half of young consumers were willing to pay more for sustainable products. Sixty-six percent of consumers say they are willing to pay more for sustainable brandsup from 55% in 2014 and 50% in 2013. By almost any measure, Millennials place a premium on corporate social responsibility (CSR) efforts. A willingness to pay more for "sustainable" products. It can be used to help people improve their thinking and decisions. 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. I recently spent $38 on a t-shirt from abrand I would trust with my life: Janne Robinson. To ensure consistent and accurate representation of the U.S. general population 18 years of age and older, data was weighted by the following variables: sex, age, geographic region, race/ethnicity, and education. For years, researchers have examined climate-oriented consumption to see if it wins peoples support. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Research expert covering e-commerce and FMCG in Greater China, Profit from additional features with an Employee Account. This conventional wisdom has been used by many brands as justification for not making their products more sustainable. IRIs data comes from bar scan codes at retail checkout in food, drug, dollar, and mass merchandisers. 43% of consumers want brands to be more aggressive about showing sustainable products on-site to further personalize their shopping experience. 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%. While the demand for such products remains low, the price remains high. Millennials and Gen Z are becoming a force to be reckoned with as they continue to represent a larger share of the consumer demographic. A weekly update of the most important issues driving the global agenda. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. Complete study findings are available upon request, including country splits. 77% of Americans are concerned about the environmental impact of products they buy. 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. 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. Products must meet similar standards (ISO 14020 and ISO 14024). While 66 percent of global consumers are willing to pay. 5 Ways to Connect Wireless Headphones to TV. The carbon footprints of the certified products are based on international standards (ISO 14040) and verified by an independent expert. This statistic reveals a significant shift in consumer behavior and highlights the importance of sustainability in marketing to this eco-conscious generation. A 2014 Nielsen study found that 55 percent of global consumers are so passionate about the planet and its people that they're willing to pay more for products and services provided by. Eco-friendly isnt quite so broad and defines products or practices that do not harm the Earths environment. 9. "Consumers are really seeking to purchase products that help them stay true to their values and what they consider matters most to them," said Parker. Academic research has consistently identified this gap between purchase intentions and behaviours. 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. Even toys can get the climate-friendly treatment. 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. For years, brand managers have groused that while consumers say they intend to buy sustainable products, in store they dont actually purchase them. 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. Instead, we focused on whether the marketing of a product as sustainable would drive purchases. Consumers could note if they were willing to pay "a little" or "a lot" for each sustainability benefit. Companies should be aware that consumers are increasingly voting with their dollars against unsustainable brands. Our eBook "What ESG means to you and your consumers in 2022" is designed to help 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. 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. As US psychologist Icek Ajzen wrote: Actions, then, are controlled by intentions, but not all intentions are carried out . This statistic displays the share of consumers willing to pay extra for sustainable products in the Netherlands from 2014 to 2020. Ryan Rudomineris a principal at R2 Strategic Consulting where he specializes in strategic communications, advocacy, and media relations. Green is the new black: why retailers want you to know about their green credentials. The views expressed in this article are those of the author alone and not the World Economic Forum. A fresh one is out from McKinsey & Company and Nielsen IQ - and the punchline is that making and Get the full study Join Your Peers When it comes to sales intent, commitment to the environment has the power to sway product purchase for 45% of consumers surveyed. For further information please contact: Saving biodiversity: why our mental and physical health depends on it. As a Premium user you get access to the detailed source references and background information about this statistic. 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%. 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. Or to remain unmoved by those facing increasingly poor living conditions across the globe. So it appears that some categories that are behind in sustainability-marketed product share are making up for lost time. But brands can nudge consumers towards more eco-friendly products. , Feb 8, 2023. 315-409-9435 1 Over 30,000 people in 60 countries were polled about their purchasing habits, and 66% of respondents said that they were willing to pay more for products and services from companies who are committed to positive social and environmental impact. As economists say, as price lowers, our willingness and ability to buy an item increase. And according to Nielsen, I'm not alone in that. NYU Sterns Center for Sustainable Business just completed extensive research into U.S. consumers actual purchasing of consumer packaged goods (CPG), using data contributed by IRI, and found that 50% of CPG growth from 2013 to 2018 came from sustainability-marketed products. For example, the climatop label certifies products that generate significantly less greenhouse gas than comparable products. www.simon-kucher.com, Internet Explorer presents a security risk. As consumers become increasingly aware of what they put in and on their bodies, theyre also interested in buyingand sometimes paying morefor products that simultaneously help the environment. The report, "Doing Well by Doing Good," found that most consumers are willing to pay more money for good and services that are sustainable. 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. Says Gstalder: While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. 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. If you have a question youd like an expert to answer, please send it to climate.change@stuff.co.nz. 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. Notably, those two companies are doing so despite the strident objections of investors who criticized Indra Nooyi and Paul Polman, the former CEOs of PepsiCo and Unilever, respectively, for moving away from their traditional brands. Consumer concern about the environment does not readily translate into the purchase of environmentally friendly products. 2023 Nielsen Consumer LLC. 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. Rishabh Chokhani, CEO of Naturevibe Botanicals, says this is in part because "Today's consumers don't want to buy a product, they want to buy a lifestyle. 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 . The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.. Globally, sustainability is rated as an important purchase criterion for 60 percent of consumers. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. From there, it becomes more specific and fragmented. ", 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. Then you can access your favorite statistics via the star in the header. Rudominers lifelong passion is using communication to foster social change. More demand would mean more production and lower unit price costs. In a study byHorizon Medias Finger on the Pulse, 81 percent of Millennials expect companies to make a public commitment to good corporate citizenship.. Millennials gave an even more impressive showing, with 73 percent indicating a similar preference." Queensland University of Technology apporte un financement en tant que membre adhrent de TheConversation AU. 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. More than half of Europeans (51%) said they are willing to pay more for climate friendly food. 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 statistic presents the results of an online survey conducted from February 17 to March 7, 2014. Environmental Choice New Zealand is the official environmental label body that awards certificates and lists environmentally friendly products for green homes or businesses. 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%. Overall, consumers identified . Companies that dont have sustainability as part of their core value proposition need to act now to protect against future reputational impacts and loss of market share, said Shikha Jain, author of the study and Partner at Simon-Kucher & Partners. Consumers are trying to be responsible citizens of the world, and they expect the same from corporations. But in a increasingly interconnected world, it's starting to be normal to think critically about where things come from and whether the company you're supporting is a responsible corporate citizen. You need a Statista Account for unlimited access. 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. Both are good tools for building trust. 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. Sustainability-marketed products are growing quickly in almost all CPG categories. zharris@prosek.com, Internet Explorer presents a security risk. All Rights Reserved. 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. 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. On a global scale, the percentage of consumers willing to pay a premium for. 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 . This is a relatively new perspective for 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. Are you making an effort to reach these socially conscious young people? As CPG sales spiked . Accessed March 02, 2023. https://www.statista.com/statistics/1367681/china-consumers-willingness-to-pay-more-for-sustainable-goods/, 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. There are several reasons for this. In fact, an analysis of retail sales data indicated that natural products were seeing growth in otherwise declining categories. 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. statistic alerts) please log in with your personal account. 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. 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. Studies show eco-friendly logos and labels can be used to nudge consumers toward sustainable fashion, food consumption and eco-friendly offerings. Already in 2015, a Nielsen report found that 73 percent of the Millennial generation was willing to pay more for sustainable goods. This likely depressed the growth numbers, as many brands have become more sustainable over time. 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. Checking labels before buying. Mr. Davis said of the survey: Companies must build trust and loyalty by clearly demonstrating that they share environmental goals with their customers. 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. 2023 Nielsen Consumer LLC. Millennials already played a significant . 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. By comparison, 51% of Boomers (ages 50-64) said that they would pay a premium for sustainable products. .chakra .wef-10kdnp0{margin-top:16px;margin-bottom:16px;line-height:1.388;}What is the World Economic Forum doing about the circular economy? Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, How much do we really care about nature? 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.. About a 3 minute read. Consumersparticularly Millennialsincreasingly say they want brands that embrace purpose and sustainability. tel. This desire for sustainable products among Gen Z is robust. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Image:Caleb Jones/Unsplash. 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