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Customers around the world are becoming increasingly more conscious of sustainability when making purchasing decisions. The demand for sustainable and eco-friendly products is on the rise, with more than 70% more people searching for “sustainable products” on Google now compared to just a few years ago in 2016. This shift in consumer behavior is evident in a recent poll conducted by Simon-Kucher & Partners, which found that a staggering 85 percent of customers worldwide have made purchases with a focus on sustainability in the past five years.
Looking ahead, nearly 80% of buyers say that they would prioritize purchasing eco-friendly items over traditional options within the next five years. This growing trend is not only driven by a desire to do good for the planet but also by the fact that sustainable products can often command a premium price from consumers. In fact, sustainable items are said to have a two-thirds price premium compared to their non-sustainable counterparts. Millennials and members of Generation Z are particularly inclined to spend an additional 20% or more on eco-friendly products, with 22% and 25% respectively showing a willingness to do so.
The ethical and sustainable goods industry has seen significant growth over the past two decades, particularly in the UK where it has quadrupled in size, reaching an impressive $43 billion. Not only are the products themselves important, but the packaging they come in also plays a crucial role in the sustainability equation. According to research by McKinsey, 55% of American customers are highly or somewhat concerned about the environmental impact of product packaging. Plastic is overwhelmingly seen as the worst packaging material, with a whopping 77% of buyers ranking it as such.
In contrast, paper and cardboard are favored as more eco-friendly packaging options by consumers. In fact, a majority of consumers consider paper and cardboard to be the most environmentally friendly materials for packaging. This shift towards sustainability in packaging is not going unnoticed by retailers, with companies like Allbirds leading the way in promoting environmental responsibility.
Allbirds, a popular clothing company, is known for its commitment to sustainability and transparency. The company’s footwear is made from all-natural materials such as eucalyptus, wool, and sugarcane. In 2019, Allbirds achieved carbon neutrality, showing their dedication to reducing their environmental impact. In 2020, they took their commitment a step further by including a carbon footprint label on every product they sell, allowing customers to make informed decisions about their purchases.
Overall, it is clear that customers place a high value on sustainability when making purchasing decisions. This growing trend towards eco-friendly products and packaging is not only good for the planet but also presents a significant opportunity for businesses to differentiate themselves in the market and attract environmentally conscious consumers. As the demand for sustainable products continues to rise, companies that prioritize sustainability will be well-positioned to succeed in the increasingly discerning consumer landscape.
