A recent survey of over 1,000 US adults revealed striking evidence that two-thirds (66%) are willing to pay more for sustainable products, despite a growing gap in consumer trust of corporations.
Despite the pressure of high inflation — which has skyrocketed in the US since2020 (from 1.4 percent to currently 8.5 percent) — 66 percent of US consumersand 80 percent of young US adults (ages 18-34) surveyed are willing to pay morefor sustainable products versus less sustainable competitors, according to thesecond Business of Sustainability Index by GreenPrint, a PDIcompany.
However, 78 percent of those surveyed say that, despite their desire to supportcompanies that align with their values, they don’t know how to identifyenvironmentally friendly companies. To confirm a company’s environmental claims,50 percent asserted that clear language on products is important; and 46 percentsay third-party or independent source confirmation is important. Among thosethat shop for more sustainable products, 72 percent use labels or third-partycertifications to confirm a company or product’s sustainability credentials — afinding that echoes SB Brands for Good andIpsos’ most recent Socio-Cultural Trend Trackerresearch.
“Americans are very clear — they want sustainable solutions and are willing topay more for them, if only they knew how to find them,” said Pete Davis, CEOand co-founder of GreenPrint — a provider of turnkey and custom carbon-offsetsolutions. “We are in the midst of a significant acceleration in public demandfor sustainability; and companies that do not meet that demand will quickly fallbehind their competitors, especially with young Americans.”
Growing trust gap between consumers and corporations
The study also revealed a growing trust gap between consumers and corporationswhen it comes to sustainability: Only 38 percent of US consumers surveyed tendto believe corporations when they claim authentic commitments to environmentalsustainability — a noticeable drop from 47 percent in GreenPrint’s 2021 study;high-profile incidents ofgreenwashingfrom majorbeverage,fashion,airlineandautomotivebrands in the past few months alone certainly haven’t helped preserve consumertrust. Overall, 41 percent think US corporations are doing a poor job ofreducing their carbon footprint.
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“Over the past year, public trust in the authenticity and effectiveness ofcompanies’ sustainability efforts has eroded significantly,” Davis said. “Thisputs businesses making genuine progress in a bind because their actions are lesslikely to be recognized. To win back trust, the data clearly shows Americanswant companies to validate their sustainabilityclaimsthrough independent sources, both on the corporate level and for theirproducts.”
Other key findings
75 percent of US consumers surveyed are concerned about the environmentalimpact of the products they buy.
64 percent would be willing to pay more for gas if the carbon emissions fromtheir purchases were offset through sustainability efforts; for youngeradults, ages 18-34, this jumps to 75 percent.
69 percent say a product’s environmental impact is important to theirpurchasing decision.
70 percent agree climate events from the past year(wildfires,floods, air-quality dangers, extreme heat,drought,etc) have made them more likely to seek out more sustainable products. Ofthis group, 38 percent were not buying those types of products before; butrecent climate events have encouraged them to do so.
45 percent believe it’s hard to maintain sustainable purchasing habits.
73 percent would sign up for a company’s voluntary rewards or loyaltyprogram if it helped reduce the environmental impact of their purchases.
64 percent would like to own a credit card that automatically offsets apercentage of the environmental impact of theirpurchases.
60 percent are more likely to buy stock in a company that is perceived assustainable, versus one that is not.
Going forward, Greenprint says the Business of Sustainability Index willcontinue to track consumer sentiment around sustainability (or claims to thateffect) in the economy, how climate consciousness andliteracyimpacts consumer preference and perceptions of companies and their products, andthe overall effectiveness of sustainability communications across varioussectors and demographics.
Published Aug 29, 2022 8am EDT / 5am PDT / 1pm BST / 2pm CEST
Sustainable Brands Staff
FAQs
A recent survey of over 1,000 US adults revealed striking evidence that two-thirds (66%) are willing to pay more for sustainable products, despite a growing gap in consumer trust of corporations.
Will majority of US consumers pay more for sustainable products? ›
The annual survey again revealed that consumers are willing to pay more for sustainable products at an increased volume, the company said in a press release. According to the study, when comparing two similar products priced at $10 or less, 71% of consumers would select the one that follows sustainable practices.
Do customers pay more for sustainable brands? ›
In terms of a price premium, some consumers are willing to pay on average 9.7% more for goods that meet specific environmental criteria, including locally-sourced, made from recycled or eco-friendly materials, produced in a supply chain with a lower carbon footprint, and more.
Are consumers willing to pay more for sustainable food? ›
Sustainability premium: 53% of consumers willing to pay 10% extra for sustainable food and drink. There are plenty of ways consumers can be more sustainably minded. This can range from recycling, upcycling, repairing, and avoiding over-consumption.
Are consumers willing to pay more for sustainable packaging? ›
According to McKinsey and Company, 60–70 percent of consumers would be willing to pay more for sustainable packaging.
Are 66% of consumers willing to pay more for sustainable products? ›
A Nielsen study discovered that 66% of global consumers are willing to pay more for products from brands committed to positive social and environmental impact.
Are customers willing to pay more for sustainable fashion? ›
Sustainable fashion is the latest buzzword dominating the news cycle. 88% of millennials and Gen Z prefer to buy brands committed to sustainability. Nearly two-thirds of them are willing to pay a premium for sustainable goods over standard products.
Why are brands becoming more sustainable? ›
Brands committed to more sustainable working practices often take a more holistic view of their operations, and they can identify areas that can improve efficiency and reduce costs. By committing to sustainability, brands can often create new revenue streams by selling sustainable products or services.
Do people buy more sustainable products? ›
Sustainability premiums
As the fight against climate change becomes increasingly important, people around the world have become more willing to pay more for sustainability: in 2022, the. In other words, shoppers worldwide were willing to pay up to an average of 24 percent more for sustainably produced consumer goods.
How does sustainability affect customers? ›
Most consumers say the commitment of businesses to sustainability influences their trust in those businesses. A third (34%) of consumers stated that their trust in brands would be improved if they were recognised as an ethical/sustainable provider by an independent third party.
New Research
In 2021, we conducted consumer research to temperature check market behavior, and consumers ranked the quality/value of a product (51%) higher than the price (30%).
What consumers really think about sustainability? ›
Yet a frustrating paradox remains at the heart of green business: Few consumers who report positive attitudes toward eco-friendly products and services follow through with their wallets. In one recent survey 65% said they want to buy purpose-driven brands that advocate sustainability, yet only about 26% actually do so.
Are consumers willing to pay more for natural products? ›
gathered through its ATLAS database, which spans more than 33 global markets and over 100,000 consumer interviews. When asked what benefits they would pay more for, 78% of respondents in the 2023 data said natural/all natural, followed by health benefits such as digestive health and immunity in second place at 77%.
Why are people willing to pay more for sustainable products? ›
Consumers globally are willing to pay more for products with a lower environmental impact, as they express increasing concern over climate change and environmental sustainability, yet many still find sustainable consumption too expensive, and focus on different aspects of product sustainability than the companies ...
Will consumers pay for sustainability? ›
For example, consumers in the US are willing to pay an average premium of 11% for products with a minimized environmental impact. However, 28% is the average premium for products marketed as sustainable in the US.
Are 74% of consumers willing to pay more for sustainable packaging? ›
New Report Finds Overwhelming Majority of Global Consumers Are Willing to Pay More for Sustainable Packaging. According to new research by Trivium Packaging , nearly three-fourths (74 percent) of consumers are willing to pay more for sustainable packaging.
Are 66% of global consumers willing to pay more for sustainable goods? ›
In fact, a study by Nielsen found that 66% of consumers are willing to pay more for products and services from companies that are committed to making a positive social and environmental impact.
Will millennials pay more for sustainable products? ›
According to a survey carried out in September 2018 in the United States, Millennials and Generation Z consumers are the most likely generations to be willing to pay extra for sustainable products.
