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 since
2020 (from 1.4 percent to currently 8.5 percent) — 66 percent of US consumers
and 80 percent of young US adults (ages 18-34) surveyed are willing to pay more
for sustainable products versus less sustainable competitors, according to the
second Business of Sustainability Index by GreenPrint, a PDI
company.
However, 78 percent of those surveyed say that, despite their desire to support
companies that align with their values, they don’t know how to identify
environmentally friendly companies. To confirm a company’s environmental claims,
50 percent asserted that clear language on products is important; and 46 percent
say third-party or independent source confirmation is important. Among those
that shop for more sustainable products, 72 percent use labels or third-party
certifications to confirm a company or product’s sustainability credentials — a
finding that echoes SB Brands for Good and
Ipsos’ most recent Socio-Cultural Trend Tracker
research.
“Americans are very clear — they want sustainable solutions and are willing to
pay more for them, if only they knew how to find them,” said Pete Davis, CEO
and co-founder of GreenPrint — a provider of turnkey and custom carbon-offset
solutions. “We are in the midst of a significant acceleration in public demand
for sustainability; and companies that do not meet that demand will quickly fall
behind their competitors, especially with young Americans.”
Growing trust gap between consumers and corporations
The study also revealed a growing trust gap between consumers and corporations
when it comes to sustainability: Only 38 percent of US consumers surveyed tend
to believe corporations when they claim authentic commitments to environmental
sustainability — a noticeable drop from 47 percent in GreenPrint’s 2021 study;
high-profile incidents of
greenwashing
from major
beverage,
fashion,
airline
and
automotive
brands in the past few months alone certainly haven’t helped preserve consumer
trust. Overall, 41 percent think US corporations are doing a poor job of
reducing their carbon footprint.
Consumers increasingly savvy about sustainability claims
Join us to hear insights from brands including Applegate on marketing lessons from consumer response to sustainability claims on CPG packaging, at SB'24 San Diego — October 14-17.
“Over the past year, public trust in the authenticity and effectiveness of
companies’ sustainability efforts has eroded significantly,” Davis said. “This
puts businesses making genuine progress in a bind because their actions are less
likely to be recognized. To win back trust, the data clearly shows Americans
want companies to validate their sustainability
claims
through independent sources, both on the corporate level and for their
products.”
Other key findings
-
75 percent of US consumers surveyed are concerned about the environmental
impact of the products they buy.
-
64 percent would be willing to pay more for gas if the carbon emissions from
their purchases were offset through sustainability efforts; for younger
adults, ages 18-34, this jumps to 75 percent.
-
69 percent say a product’s environmental impact is important to their
purchasing 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. Of
this group, 38 percent were not buying those types of products before; but
recent 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 loyalty
program if it helped reduce the environmental impact of their purchases.
-
64 percent would like to own a credit card that automatically offsets a
percentage of the environmental impact of their
purchases.
-
60 percent are more likely to buy stock in a company that is perceived as
sustainable, versus one that is not.
Going forward, Greenprint says the Business of Sustainability Index will
continue to track consumer sentiment around sustainability (or claims to that
effect) in the economy, how climate consciousness and
literacy
impacts consumer preference and perceptions of companies and their products, and
the overall effectiveness of sustainability communications across various
sectors and demographics.
Published Aug 29, 2022 8am EDT / 5am PDT / 1pm BST / 2pm CEST
Sustainable Brands Staff