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Customers all over the world are placing a high value on sustainability when making their purchasing decisions. The demand for sustainable and ecologically friendly products is on the rise, with more than 70% more people searching for “sustainable products” on Google now compared to just five years ago in 2016. This growing trend towards sustainability is evident in the fact that 85 percent of the world’s customers have made purchases with a focus on sustainability, according to a survey conducted by Simon-Kucher & Partners. Furthermore, almost 80% of buyers say they would prioritize eco-friendly items in the next five years.
Consumers have shown that they are willing to pay a premium price for sustainable products. Sustainable items reportedly have a two-thirds price point increase, and Millennials (22%) and members of Generation Z (25%) are the most likely to spend an additional 20% or more on these products. The ethical and sustainable goods industry in the UK has seen significant growth over the past two decades, reaching a staggering $43 billion in revenue.
In addition to the products themselves, customers are also placing importance on the packaging of these items. According to McKinsey, 55 percent of American customers are highly or somewhat worried about the environmental impact of product packaging. A vast majority of buyers (77%) rank plastic as the worst packaging material, while paper and cardboard are the preferred ecological packaging options. In fact, paper and cardboard are considered the most eco-friendly materials according to a recent poll.
Retailers are taking note of this shift towards sustainability and are adapting their practices accordingly. One such company leading the charge is Allbirds, a clothing company that is known for its dedication to environmental responsibility. Allbirds’ footwear is crafted from all-natural materials such as eucalyptus, wool, and sugarcane. In 2019, they achieved carbon neutrality, and in 2020, they began including a carbon footprint on the label of every product they sold.
The growing demand for sustainable products is not just a passing trend, but a long-term shift in consumer behavior. As more and more customers prioritize sustainability in their purchasing decisions, companies will need to adapt to meet these changing expectations. By offering sustainable and eco-friendly products, as well as environmentally conscious packaging options, businesses can attract a larger customer base and differentiate themselves in the market. Embracing sustainability is not only good for the planet but can also be a profitable business strategy in the long run.
