Are Consumers Willing to Pay More for "Green" Products?

Consumers claim to want eco-friendly products, but do they proceed to actually buy them? Nowadays, it would appear that companies that advocate for sustainability are faced with a predicament. In official surveys, consumers respond positively that they would opt for eco-friendly products and services. However, they tend not to follow through with their wallets. With the topic of climate change showing no signs of slowing down, eco-progressive initiatives are being put in place at every level of society. Amongst the hype of sustainability, there has never been a better time for brands to launch campaigns that boast ethical practices. Consumers, especially the younger generations, claim they want brands that carry out ethical sourcing and labor laws. According to a poll conducted by GreenPrint, 75% of Millennials are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers. Consumers report positive attitudes towards eco-friendly products, yet only about 26% actually purchase them. Green Products Cost More Between the sourcing of raw materials to shipping the final product, almost every stage of the manufacturing and production processes of eco-friendly products do indeed cost more than traditional products. Sustainable materials take more time and cost more to grown and manufacture. For example, the natural growth of crops is often sped up with chemicals and fertilizers that damage the environment. Third-party certifications that approve of and authorize sustainable practices to add further costs, and using organic materials is more expensive than the harmful alternatives. In addition, economies of scale impact the price. While the demand for ecological products remains relatively low in the grand scheme of things, the price remains high. A higher consumer demand would lead to more production, and in turn lower unit price costs. What Does This Mean for Your Brand? It’s clear that consumers care about sustainability, but are they willing to put their money where their mouth is? According to research, they are. Another survey conducted by Trivium Packaging found that 74% of consumers are willing to pay more for sustainable products. Furthermore, up to a quarter of these consumers willing to pay more were willing to accept an increased price of 10%. In order for your brand to stay competitive, it’s necessary that you start making sustainable choices by limiting your environmental footprint, providing an eco-friendly packaging, and investing in environmental programs. Making changes such as these to your business aren’t only morally correct, they’re sure to become an imperative choice to make for the longevity as well as the positive image of the brand. Make sure that you also follow through with your sustainability claims. In the same study by Trivium Packaging, they found that 85% of consumers carry out their own research online before buying a product. So if you’re sustainability promises are empty, odds are your customers will know about it, and this will harm your brand’s reputation. It’s essential to ensure that your brand’s claims are both legitimate and realistic, to add to the global long-term pursuits of sustainability. In the Hands of the Consumer It would appear that from the standpoint of younger generations, the average consumer is willing to pay more for sustainable goods. Of course, the collective responsibility of consumers only plays one part of the wider climate change picture. However, with the increased financial investment of government regulation and the ongoing demand from everyday customers, the large industries and corporations will also have to get on board.