A new report has estimated that consumers will spend up to $150 billion on sustainable products by 2021.
The consumers are not likely to value all attributes considered ‘sustainable’ equally, as different attributes resonate best within different product categories, the report added
The top attributes that more than one-third of consumers are willing to pay more for include cruelty free (31%), farm raised (32%), organic farming (33%) and environmentally friendly (33.5%).
The report published by Nielson recently, however advised brands to carefully focus on products with sustainability footprint to build credibility and trust or risk alienating their customers.
“Given the many overlapping sustainable attributes that shoppers encounter today, we examined which sustainability related product attributes, claims and ingredient profiles could translate to price premiums for brands, with consumers willing to pay more for specific sustainability related attributes”.
The report found that products that are environmentally friendly and use recycled packaging resonate most strongly with consumers overall.
“Consumers find both of these qualities to be the most important to their decision making, as well as top attributes they would pay more across all categories.”
The report noted that with sustainability, as with any other aspect, an awareness of an attribute’s value can increase consumers’ willingness to pay more.
“Across categories, consumers’ familiarity with an attribute strongly correlated with their willingness to pay more for it.
It added: “Consumers could note if they were willing to pay a little or a lot for each sustainability benefit”.
The post Consumers To Spend $150bn On Sustainable Products – Report appeared first on Independent Newspapers Nigeria.
Source: Independent
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