Sustainable Innovation


Consumers prepared to pay a premium for products supporting social or environmental causes

More and more companies take an active approach to produce products in a sustainable way. But do consumers really care? The recently published The Nielsen Global Survey results point out they do.

A majority of consumers is prepared to pay more for products and services from companies committed to positive social and environmental impacts. This proportion is higher in Asia-Pacific (64%),  Latin America (63%) and Middle East/Africa (63%) than in North America (42%) and Europe (40%) – and in all regions the proportion is increasing.

Proportions per region preferring products that support sustainable cause

Consumers care and willing to pay more from sustainable companies.
Source: Nielsen Global Survey of Corporate Social Responsibility, Q1 2014

What are the social or environmental causes that get the most support? Nielsen asked respondents to specify the causes they are most passionate about. 67% are willing to pay more for products associated with an increased access to clean water, 63% that help to improve access to sanitation and 63% products that ensure environmental sustainability. Amongst the Top 10 are also ‘eradicating exterme poverty and hunger’, ‘combating non-communicable diseases’, ‘reducing child mortality’, ‘improving maternal health’.

Percentage of respondents willing to pay more for sust causes

Social and environmental causes consumers care about.
Source: Nielsen Global Survey of Corporate Social Responsibility, Q1 2014

Notably the Millenials (age 21-34) and Generation X (35-49) are prepared to pay more for sustainably produced products. Checking the packaging to be assured about the social or environmental impact is most important in Asia-Pacific, Latin America and Middle East/Africa (63%, 63% and 62%) whereas in Europa and North America, this is only 36% and 32%. (Perhaps the jungle of eco-labels has made people lees receptive?)

And it is not just about buying products. Half of the Millenials prefer to work for a sustainable company, and a quarter of the Generation X likewise.

Proportions responsive to sustainability actions

Millenials most prominent in preference for sustainability actions
Source: Nielsen Global Survey of Corporate Social Responsibility, Q1 2014

So: embedding sustainability in product development can create additional business value. That is encouraging news. Off course, just having a social or environmental cause associated with your product won’t do the trick. Old-school product-performance, a reasonable price, splendid marketing and communication skills are also essential. But if you are determined to produce great products that also support Planet and People, and you have the right conditions in place, nothing should stand in your way to create a successful business. As a bonus, you’ll be preferred employer of choice as well.

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1 Comment so far
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