Sustainability-Marketed Products Continue to Thrive in 2023
Have you heard the good news? Sustainability-marketed products are taking more market share than ever before! According to a report from Circana and the NYU Stern Center for Sustainable Business, sustainability-marketed products now make up 17.3% of purchases, up 0.3% from the previous year.
And that's not all - the growth rate for sustainability-marketed products is almost double that of conventionally marketed goods! In fact, over the past five years, the compound annual growth rate for sustainability-marketed products is 9.48%, compared to 4.98% for conventionally marketed goods.
Now, I know what you might be thinking - sustainability-marketed products are still pricier than conventionally marketed goods, with a 27.6% price premium. But here's the thing - consumers are willing to pay more for products that align with their values. A survey by Shopify found that 40% of shoppers would pay more for eco-friendly items, and 43% were more likely to buy from brands with sustainability practices.
And it's not just consumers who are shifting their habits towards sustainability. A Unilever survey found that three-fourths of respondents said that social media content influenced them to adopt more sustainable behaviors. This means that loyalty to brands has shifted among younger consumers, who are looking for brands that share their values.
Looking to Slap a Green Label on your Product?
As more companies jump on the sustainability bandwagon, it's important to be aware of the dangers of greenwashing. Consumers today are more research-driven than ever before, and have a wealth of resources at their fingertips to fact-check companies' claims. Greenwashing can quickly erode any trust or loyalty your company has built with its customers, and damage your brand reputation irreparably. So, it's crucial to ensure that your sustainability marketing is accurate and transparent, and that your products and practices truly align with your values. By staying true to your sustainability mission and being transparent with your customers, you can build a loyal customer base and make a positive impact on the planet.
What does this mean for Climate Focused Companies?
It means that sustainability is no longer just a nice-to-have, it's a must-have. Consumers are actively seeking out sustainable products, and companies that don't prioritize sustainability risk being left behind. As a sustainability-focused company, you're already ahead of the game. By continuing to prioritize sustainability and marketing your products as eco-friendly, you can continue to tap into this growing market and attract new customers.
Ready to position your brand at the forefront of the sustainability revolution? Reach out to our expert team to craft strategies that resonate with the growing eco-conscious consumer base, leveraging transparency and genuine sustainability practices to build trust and foster loyalty.