Research from the NYU Stern Center for Sustainable Business and IRI has found that 93% consumers have maintained or increased their sustainable purchase habits during the past year. Additionally, 77% of consumers believe sustainability is important when selecting products to buy, up 8% from 2021 research.
Retailers should take note of the study because consumers are seeking companies who are committed to sustainability. The study found 27% of all shoppers and 32% of Millennials and Gen Z–sought retailers who carried sustainable products. IRI and NYU concluded that this is a trend that will only grow, not recede, as the years go on.
“Our new research finds that Gen Z and Millennials are noticing this increase and are more likely to try these new products than older generations,” said Joan Driggs, vice president, Content and Thought Leadership, IRI.
When it comes to products, while sustainable items represent only 17% of total CPG sales, they are one of the biggest drivers of products growth. In 2021, one-third of all CPG growth in the past year came from sustainable products. The IRI/NYU study reported sustainability-marketed products grew 2.7-times faster in their categories than conventionally marketed products.
There are also more sustainable products out there the report found. The IRI/NYU study found that in 2021 about 50% of all new products were sustainable, an increase from 20% of all new products in 2017. However sustainable products did come with a price. Sustainability-marketed products could command price premiums over conventional counterparts anywhere from 8% to 130%.