Why Customers Prefer Sustainable Businesses

A while ago, the concept of Sustainability and climate change seemed far-fetched and unrealistic, but today, many consumers are more informed and want to feel good about the companies they buy from.

An authoritative new study from the Nielsen Report, finds that regardless of product category, brands with legitimate sustainability claims do better. According to the report, products with sustainability claims generally outperformed the growth rate of total products in their respective categories. For instance, based on sales for the 52-week period ending 3/24/2018, the weighted average of all three categories showed 3 percent more growth for sustainable products. Sustainable coffee 11 percent more, sustainable chocolate 2 percent more and sustainable bath products 13 percent more than the total of their respective categories.

The report further emphasizes that brands that are able to strategically connect sustainability to actual behavior are in a good place to capitalize on increased consumer expectation and demand. Packaging must also reflect how a company operates both internally and externally for it to be considered “sustainable”.

In other words, customers have become smarter and want sustainable products from sustainable companies which includes everything from labor practices to the environmental impact of their production. Business are encouraged to adopt Sustainability as strategy and clearly define their sustainability targets to meet with market demands and increase value across board.


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