Published On: Thu, Apr 25th, 2019

How Consumer Demand is Driving the Eco-Friendly Product Market

Consumer demand for eco-friendly, sustainable products is transforming the supply chain. In 2017, 25% more companies were promoting the environmental benefits of their products and 40% said they were taking action to improve the eco-friendliness of their products.

Consumer Demand Shifts Corporate Policies

The shift toward eco-friendly, sustainable products has been in motion for quite some time, and consumer demand for these types of products has transformed corporate policies.

Ultimately, it’s consumer dollars that dictate company policies and values. Consumers will simply avoid doing business with companies that don’t meet their standards.

In 2015, a study from the University of Bonn found that consumers were willing to pay 30% more, on average, for ethically produced goods compared to their conventionally produced counterparts.

A 2018 study from IRI found that three-quarters of European shoppers prefer to purchase products that have environmentally-friendly packaging.

As demand for environmentally-conscious products has grown, green companies, like ECOBAGS, have emerged. These companies have built their foundations on the green philosophy.

In fact, consumer demand for environmentally-friendly practices pushed Walmart to launch Project Gigaton, which aims to take 1 billion tons of greenhouse gases out of it supply chain by 2030.

The Sustainability consortium (TSC) now assists corporations in making their transition toward greener policies. When companies become members of TSC, they gain access to data and tools that help them increase profits while reducing their carbon footprints.

A Need for Sustainability

Initially, the drive to gain a competitive advantage and meet consumer demands drove companies to focus on sustainability.

Now, sustainability has become a necessity, according to findings from TSC’s 2017 Impact Report. That’s because we live in a world of ever-shrinking natural resources.

“There are many ways for companies to “go green”, and adopting sustainable practices such as Solar Panels Chelmsford can significantly contribute to both environmental conservation and cost savings. Large factories may install solar panel systems. This solar panel installation can be installed with the help of a professional solar installer to lower their energy costs. Restaurants may start using bicycles or electric vehicles for deliveries to reduce emissions. Warehouses may retrofit their lighting systems to lower energy consumption. Home builders may use materials made from recycled materials.

With consumers becoming increasingly focused on issues like food insecurity, climate change, responsible farming practices and the protection of natural resources, businesses must jump on the sustainability bandwagon or risk being left behind.

In fact, research from the National Marketing Institute found that 20% of Americans (and an even higher percentage of Millennials) will boycott companies if they aren’t participating in social responsibility. That research also showed that 48% of the population is more likely to try a service or product if the company is mindful of its societal and environmental impact.

About 31% of the population is less concerned about price if the company is mindful of its environmental and societal impact. About 64% of Millennials and 51% of Gen Xers said they would purchase more environmentally-friendly products and services if they were available.

That gives even more incentive for companies to implement green practices and focus on developing sustainable, eco-friendly products. Millennials and Gen Xers hold a lot of purchasing power. Their demand for more socially responsible companies and products will continue to drive the sustainability trend forward.

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