While 69 per cent of Australians aspire to purchase more sustainable products, 41 per cent view current pricing levels as prohibitive.
Research from global consultancy firm Simon-Kucher, revealed that while half of Australians are willing to pay a premium for sustainable products, many brands are pricing their products just over consumers’ purchase limits.
Amelie Spaniol, Senior Manager at Simon-Kucher Australia, said consumers recognise environmentally led products and services come with a cost.
“Brands that bridge the affordability gap and meet their price perceptions will realise a material commercial advantage in the market.”
The willingness to pay a premium for sustainable products differs among different generations, with boomers the least willing at 25 per cent, while Gen Z’s have the highest at 46 per cent. Gen Zs are also the most sustainably aware, with 75 per cent considering sustainability when purchasing.
Along with the rise in sustainability awareness, there has also been a rise in the awareness of companies greenwashing. Over half, 54 per cent, of customers perceive that brands are guilty of greenwashing, often due to the void of evidence aligned to the sustainability claims.
Instead of trusting a brand’s sustainability claims, roughly 80 per cent of consumers are initiating their own research of products and their environmental impact.
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