A recent report by Magna and Sharethrough found that consumers value sustainability and are willing to pay more for it, but often have trouble recognizing sustainable products and want brands to educate them through advertising. For the study, the companies polled 1,200 people in Canada and the U.S. and tested more than 3,600 scenarios and 19 product characteristics.
“What was revealed in the report is that consumers are actively asking brands to use advertising to educate them about the sustainable features of their products – a rare and remarkable opportunity,” said Frank Maguire, SVP of product marketing and sustainability at ad tech platform Equativ (which owns Sharethrough). “It’s not often that we hear consumers inviting brands to advertise to them, but this is a clear call for transparency and engagement that brands should embrace.”
According to the report, most respondents have limited knowledge of sustainability labels and struggle to understand what these certifications signify. To learn about it, nearly 92% of them believe it is important for brands to communicate their sustainability efforts through packaging and advertising. This sentiment is consistently echoed across several categories like household cleaning, automotive, appliances, apparel, technology, food, personal care and furniture.
Specifically, 84% prefer learning about a brand’s sustainable features through in-store packaging, while 80% prefer the brand’s website. Around 73% favor advertising, while 58% prefer social media and 55% opt for newsletters. Some 42% would rather be informed by influencers. Younger generations are particularly receptive to advertising, with 80% favoring it as a way to learn about sustainability.
Overall, the survey finds that businesses that advertise sustainable products attract a broad age range, with Millennials (29%), Gen Z and Gen X (25% each ones) being the most willing to pay more for these brands. Approximately 19% of Boomers and 15% of the Silent Generation would pay extra.
The study also reveals that 63% of respondents would pay more money for sustainable products, and one in four shoppers could be classified as “eco-spenders,” who are people who are willing to pay more regardless of the product.
When it comes to groceries, consumers prioritize ethical animal welfare, with 46% willing to pay more for food with sustainable features. About 17% would pay a premium for products emphasizing animal welfare practices, like cage-free eggs. In personal care, green consumers are drawn to refillable packaging (24%), responsibly sourced materials (23%) and recyclable packaging (20%), with 44% willing to pay more for sustainable products in general. For clothing, 25% would pay more for responsibly sourced items and 22% for materials from certified regenerative organic farming practices.
Photo via Unsplash