Sustainability is no longer a niche concern but a driving force behind many consumers’ purchasing decisions, reshaping markets and creating new opportunities for brands. Today’s shoppers are not just looking for products, they are seeking commitments by brands to the environment and meaningful, transparent actions from the companies they support.
As consumers increasingly prioritize sustainability, brands that wish to capitalize on this trend must go beyond superficial claims and invest in genuine environmental, social, and governance (ESG) initiatives. Embracing transparency and authentic change can help brands earn the trust and loyalty of a growing demographic that values ethical and eco-friendly practices.
Our recent survey of US consumers explores their perceptions of sustainability and offers insights on how businesses can meet consumers expectations for sustainable products and brands.
What Sustainable Behaviors Are Important to Consumers?
Over half of consumers say that choosing non-toxic products is important to them when making purchasing decisions. The clean beauty industry is a notable example of a sector of the non-toxic product market that been growing rapidly over the last few years. These products are appealing to consumers because, unlike traditional beauty products, they are intended to be better for consumers’ health and the environment. The industry has grown exponentially largely due to social media and influencers showcasing and endorsing clean beauty brands. There are myriad definitions of “clean beauty,” though, and disagreement about what a “clean” product actually is, causing confusion for consumers. Brands looking to tap into this growing market should ensure full transparency in the origin and efficacy of their ingredients to gain trust and loyalty from their customers.
Are Consumers Likely to Purchase Sustainable Products?
We found that over half (56%) of consumers are willing to switch from purchasing products from a non-sustainable company to a sustainable company. Two in five (42%) are even willing to pay more for products that are environmentally friendly and sustainable, with younger consumers more likely than older consumers to be willing to pay more (18-34: 51%, 35-54: 46%, 55+: 29%).
Indeed, a recent study from McKinsey and NielsenIQ found that products with ESG claims have drawn the attention – and dollar – of consumers and have experienced significant growth compared to those that do not have similar ESG-related claims. Brands with ESG claims have also witnessed outsized growth compared to similarly sized companies without these assertions. Clearly, there is a market opportunity for brands willing to invest in meaningful ESG initiatives at the brand- and product-level.
Consumers are most interested in purchasing household products (57%) and food products (53%) from sustainable companies. More specifically, about half are interested in non-toxic cleaning and household products (49%) and clean skincare (45%). Except for non-toxic cleaning and household products, younger consumers are more likely than older consumers to have an interest in purchasing sustainable and environmentally friendly products over the next 12 months.
What Increases Consumer Interest in Sustainable Products?
What might encourage more consumers to purchase non-toxic products or products from companies that prioritize sustainability? Lower prices (63%), positive online reviews (44%), and word-of-mouth recommendations (41%) seem to be the key.
Additionally, GWI found that US consumers prioritize price, recyclability, and sustainable packaging when making purchasing decisions. In the same study, GWI explored what US consumers are seeking from brands in terms of sustainability. Consumers note that the most important items they want to see industries improve are:
- Reducing emissions/impact (61%)
- Offering sustainable products/services (60%)
- Making changes to be more sustainable (60%)
Wrap Up
The movement toward sustainable behavior is not just a passing trend but a significant shift in market dynamics. With over half of consumers willing to switch to sustainable brands and a notable percentage prepared to pay more for eco-friendly products, the message is clear: sustainability sells.
Brands that invest in transparent, meaningful ESG initiatives are likely to reap the rewards of increased consumer interest and loyalty. As the data shows, younger consumers, in particular, are leading this charge, indicating that the demand for sustainable products will only grow stronger. By prioritizing transparency in ingredients, recyclability, and sustainable packaging, companies can align with consumer values and secure a competitive edge in a market increasingly driven by sustainability.
Methodology
This Research Roundup feature is brought to you by our market research division within TEAM LEWIS.
TEAM LEWIS surveyed 1,005 individuals aged 18 and older across the United States. The sample was census-balanced across age, race, gender, and region. Responses were collected in an online survey platform from September 26 to 29, 2023. The respondents were independently sourced from Op4G.
For more information on upcoming trends, insights in the industry, and how we can help, contact us today by emailing [email protected].
