Blue Yonder: Shoppers Cannot Avoid Paying a Green Premium

Sustainability is continually becoming a crucial factor in the shopping decisions of today's consumer, yet the amount they're willing to shell out varies significantly depending on the type of products they are buying.

Blue Yonder, a leader in digital supply chain transformations, has unveiled the results from its fourth annual Consumer Sustainability Survey.

This comprehensive study now encompasses perspectives from consumers located in the UK, Australia and New Zealand (ANZ), France, Germany and the US.

The survey dives deep into attitudes concerning sustainable shopping practices.

An impressive 78% of participants highlight sustainability as a key consideration when selecting products or retailers.

This trend is most pronounced among younger populations, with a notable 88% of Gen Z and 86% of Millennials minding the sustainability of their purchases.

Although Gen Xers and Baby Boomers demonstrate lower percentages, 77% and 66% respectively, they still show a sizeable interest.

Despite the rising interest in purchasing environmentally conscious products, the willingness to pay extra for sustainability sees significant variance depending on the nature of the product.

Essentials or luxuries?

The survey reveals a marked reluctance in splurging beyond a certain premium.

Nearly half of the respondents, 47%, are prepared to pay an additional 5% to 9.9% for eco-friendly products, but only 14% are willing to exceed that range.

It appears that sustainability weighs more heavily on day-to-day purchases rather than on high-cost items.

Consumers are mainly channelling their green investments towards everyday essentials such as food and beverages, 48%, cleaning products, 37%, personal care and beauty items, 30%, and clothing and footwear, 26%.

On the other hand, product categories like appliances, consumer electronics and automobiles attract less enthusiasm for additional green expenditure, each under 20% preference.

"Shoppers are sending a clear message that ethical sourcing and clean ingredients matter in food, cleaning products, beauty and clothing," says Lesley Simmonds, Vice President of Industry Strategy for Retail at Blue Yonder.

"Retailers in these categories can gain an edge by delivering sustainability with credibility, affordability and convenience."

A trust problem with marketing sustainability

As interest in sustainable shopping options grows, scepticism around the authenticity of brands’ sustainability claims remains high.

A mere 20% of Blue Yonder's survey participants believe that companies truthfully communicate their sustainability efforts through advertising and marketing.

This trust is somewhat higher in France at 25% and the US with 23%, but dips significantly in the UK and ANZ, which report 17% and 13% respectively.

With a quarter of consumers outright doubting brands’ sustainability claims, 17% feel compelled to conduct independent research, while 9% dismiss it as a marketing gimmick without real commitment.

Opinions on who should take the lead in sustainability matters are varied.

A third point to brands and corporations as the primary carriers of this responsibility, while 28% see it as a prerogative for government bodies.

Meanwhile, 32% advocate for a shared responsibility model.

Artificial Intelligence’s role in advancing sustainability also stirs mixed reactions.

While a third of the respondents remain optimistic about AI fostering new sustainable innovations, another third are undecided.

Conversely, 12% see little potential in AI impacting sustainability positively, where 22% express concerns over the technology’s environmental footprint, particularly regarding data centres’ energy consumption.

"Our survey findings indicate that sustainability can be a competitive advantage and drive growth for brands," adds Saskia van Gendt, Blue Yonder’s Chief Sustainability Officer.

"Sustainability can increase operational efficiency, reduce costs, increase customer satisfaction, meet regulatory requirements and improve brand perception.

"To support claims validation, brands and retailers can turn to technology and a multi-tier, multi-enterprise network to improve visibility and authenticate responsible practices across their end-to-end supply chains."

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