Consumers have been concerned with sustainability for many decades, but while many claim they take sustainability into account when purchasing, data says otherwise.
The Business of Sustainability Index finds that 80% of 18 to 34 year olds say they would pay more for sustainable products, close to the 78% who answered that way in 1989. However, consumer behavior has not matched this sentiment.
The green premium is the perceived additional cost of paying for sustainable goods. With the economy going through various recessions in the last few decades, this has placed the cost of goods at the forefront of consumer minds.
Recessions and inflationary costs serve to highlight the cost differences between sustainable and traditional goods, pushing consumers to make the more cost-effective purchase.
Costs are not the only barrier to sustainable purchasing. The Business of Sustainability Index also found that 78% of consumer want to purchase more sustainably, but they do not know how to identify environmentally-friendly companies.
Consumers mainly rely on third-parties and product labels to denote sustainability, but most lack the ability to understand the information presented them.
Moreover, greenwashing has made it harder to determine a brands true sustainability status. The practice involves using green packaging and nature imagery to trick consumers into thinking they are buying environmentally-friendly products.
The paradox between the desire to purchase sustainably and the ability to do so raises the question of how brands can entice consumers purchase to purchase sustainably.
Most are doing this by pushing for industry-wide change of manufacturing practices, utilizing incentives and discounts or educating consumers through marketing.
Levi Strauss produces 100% recyclable jeans, and they partner with the Blue Jeans Go Green initiative, which upcycles old jeans into new products. They also provide education on how to prolong the life of their products.
Companies have an opportunity to change consumer behavior, so that price-conscious does not destroy the sustainably-conscious.
