Consumer research indicates that people are not only becoming more conscious of what they buy, and from whom, but also that they are willing to pay a premium for sustainability.
Our findings (some of which are summarised below) indicate that this premium is between 5-10% for most consumers, but substantially higher for some.
- A report by Nielsen (2015) found that 66% of global consumers, and 73% of millennials, say they're willing to pay more for sustainable brands.
- A study by Accenture (2019) found that over 50% of respondents were willing to pay more for sustainable products intended to be reused and recycled.
- A McKinsey (2012) study found that 70% of respondents were willing to pay a 5% premium on green goods in a variety of categories.
- The CGS 2019 survey found that 35% of consumers were willing to pay 25% more sustainable products, 7% of consumers were willing to pay 50% more, and 5% of consumers were willing to pay 100% more.
The impact tiers in our Shopify app are structured so that they normally account for between 4-8% of the current product price. It is our belief that many companies would be able to recoup the cost of the impact by increasing the price of the product, assuming they communicate clearly about the merits of both the product and the impact.