The Great Green shift: The world moves towards a sustainable future

Sustainability trends have gained impressive momentum ever since the environment slowly became one of the key factors for both brands and consumers around the world. 

Consumers are not only scrutinising product composition but actively supporting eco-conscious companies or transitioning to zero-waste lifestyles.

But just how widespread is the sustainability trend, and will it continue? 

Using the latest available data released by The Round Up, this report will answer all your questions about environmentally conscious consumers in 2023.

Key Statistics

• Sustainable Products have an overall 17% market share and a 32% share of growth.
• Products marketed as sustainable grew 2.7x faster than those that were not.
• 75% of sustainable goods sell better online than in-store.
• 78% of consumers feel that sustainability is important.
• 62% of people say they "always or often" seek products to purchase because they are sustainable
• 55% of consumers are willing to pay more for eco-friendly brands.
• 84% of customers say that poor environmental practices will alienate them from a brand or company.

Market Share for Sustainable Products is Increasing

Statistics show that sustainably made products avail an increased share of the market and a higher growth rate than those that are not made with sustainability in mind.

Sustainable products have a 32% share of market growth. Products that are marked as sustainable now enjoy a 17% share of the overall market value, reports The Round Up. 

They grew 2.7x faster than conventional products (7.34% CAGR compared to 2.76%)

Sustainable products are more popular online than in stores

Brands that sell eco-friendly goods, such as zero-waste stores, are more likely to have success when selling online than in a physical store. Approximately, 75% of product categories saw sustainable products perform better in terms of market share when sold via online e-commerce than in-store.

This may be influenced by the demographic that shops online, as well as the increased real estate available to showcase a product's eco-credentials on a website as opposed to a store shelf, according to The Round Up. 

Is sustainability actually important?

Consumers as a whole are warm to the idea of living and shopping greener. A survey of 10,281 global consumers showed that:

• 78% agree that environmental sustainability is important, that the concept of sustainability appeals to them, and that they want to lead more sustainable lives.
• 63% have actually taken either moderate or significant steps to modify their lifestyle, including adopting greener buying habits, in an attempt to become more sustainable.

Meanwhile, a separate 2023 survey of 2,414 US adults revealed a similar change in purchasing habits.  62% of people say they "always or often" seek products to purchase because they are sustainable for the environment, which is up from just 27% in 2021.

Millennials are more likely to adopt sustainable buying habits

There is a generation gap when it comes to those consumers who have modified their lifestyles. Baby Boomers (59%) are least likely to have made modest, significant, or total changes toward living sustainably, with Gen X (62%) and Millennials (67%) showing a greater uptake.

Consumers appear to be getting less selfish and more willing to buy and consume less in order to reduce their environmental impact. 

68% of global consumers say they would be willing to reduce their consumption by half to avoid environmental damage and/or climate change. When broken down by region, the willingness is higher (78%) in Africa and the Middle East, and lowest (58%) in North America.

Consumers are behaving more sustainably

Global attitudes towards sustainability are changing slowly but surely. The following sustainable behaviors have all seen an increase since 2021.

• 68% of people now use their own shopping bag
• 59% of people recycle regularly
• 51% avoid products that they know are bad for the environment
• 47% avoid single-use plastic where possible
• 40% buy organic or natural products

Social factors more important to consumers than environmental factors

The environment is important to consumers, but they appear to put equal or even greater importance on legislative, human rights, and fair trade policies.

A sample of US consumers was asked "To what extent would a company's environmental, social and governance actions influence your behavior to purchase a product or service from the company?"

The percentage that said that they would "often or always" be influenced by these factors was as follows:

Environmental factors – commitment to reducing carbon emissions, using recycled materials or reducing plastic waste in its products 29%

Social factors – supporting human rights, supporting diversity and inclusion of workers and staff, or supporting local communities 39%

Governance factors – being transparent and ethical, complying with regulations or managing customer data and privacy appropriately 35%

In this changing landscape, companies are not just adding sustainable practices to their business plans—they're also making them a focal point in their marketing.

Green marketing, promoting environmentally friendly products, isn't a passing trend; it mirrors a broader societal move toward sustainability and a cleaner world. Currently, the global green marketing market is predicted to grow from about $49.25 billion in 2021 to around $60.81 billion by 2027, with an annual growth rate of approximately 3.58% from 2021 to 2027.

At its core, green marketing acknowledges the lasting advantages of contributing to sustainable development. 

It's a practical approach urging companies to satisfy customer demands while simultaneously reducing their environmental impact. 

So, if it's a win-win solution, can we expect to see more progress in 2024?