April 12th, 2024, Lesley Simeon
There are plenty of ways consumers can be more sustainably minded. This can range from recycling, upcycling, repairing, and avoiding over-consumption. Putting their dollars behind sustainable brands and practices is another consumers can show their support for the environment.
According to a recent YouGov survey that polled more than 19,000 consumers across 17 international markets, 36% of consumers say they would not be willing to pay more for sustainable versions of regular packaged food and drinks. When it comes to sustainable versions of meat and fresh produce, the number drops to three in ten(30%).
So, who are the shoppers who would consider spending more to honor sustainable production practices? There are some takers, data reveals.
Packaged foods and drinks
More than half of all consumers who would be willing to pay more for sustainable versions of products, would be willing to pay up to 10% more on sustainable versions of regular packaged foods and drinks (53%), while a little over two in ten of them (21%) would pay up to 25% more.
Think a markup of up to 50% markup would be too much and find almost no takers? 13% of consumers say they’d be willing to pay up to a 50% markup, with figures for those who would pay more than 50% are all under one in ten consumers across all markets. Finally, 3% of those surveyed say they’d pay more than 100% for sustainable versions of packaged food and drink products.
Meat and fresh produce
Nearly half of all consumers (48%) would pay up to 10% more for sustainable versions of regular meat and fresh produce. Roughly a quarter of all consumers (24%) would pay up to 25% more, while 14% of them would push spending up by up to 50% more.
Just 5% of all consumers would consider doubling it and paying up to 100% more and 3% of those surveyed say they’d pay more than 100% for sustainable versions of meat and fresh produce.
By country
Packaged food and drinks
First up - consumers who wouldn’t pay extra for sustainable versions of packaged food and drinks. Consumers in France (48%), the US (47%) and Germany (47%) are the most likely across markets to say they wouldn't pay more.
Now looking at consumers who would be open to paying more, Hong Kongers and Britons are the most likely to say (64%) they’re okay with paying up to 10% more on sustainable packaged food and drinks. Danes (62%) and Singaporeans (60%) follow.
In the US, more than half of those polled (53%) say they’d pay up to 10% more as well. At 55%, Mexico is at a two-percentage point lead over US.
Nearly three in ten Indians (28%) are willing to pay up to 25% more, and nearly a one in five consumers in Indonesia (19%) and the UAE (19%) are fine going a bit further and spending up to 50% more on sustainable versions of packaged food and drinks.
Consumers in the UAE and Indonesia also lead in saying they are okay paying up to 75% more (10% each) or even up to 100% more (9% each). In fact, 7% of respondents in the UAE are okay spending more than 100% on sustainable packaged food and drinks.
Meats and fresh produce
Americans (42%) and French (40%) account for the largest proportion of consumers across markets who say they wouldn’t pay more for sustainable versions of meats and fresh produce.
Among those who would pay a sustainability premium - Hong Kongers lead (62%) in saying they’d be okay paying up to 10% more, closely followed by Singaporeans (60%). Consumers in Spain (59%), Great Britain (57%) and France (56%) follow. Nearly half of all Americans (49%) are willing to spend up to 10% more on sustainable meats and fresh produce as well.
As for those who would be willing to pay a premium of up to 25% more for sustainable versions of meats and fresh produce, Indians (28%), Danes (28%) and Germans (28%) lead, followed by Brits (26%) and Americans (26%).
India, Indonesia and UAE are markets where consumers would be willing to pay an extra amount up to the 50% mark and beyond as well.
UAE accounts for the largest proportion of consumers who’d be okay paying up to 50% more (24%), 75% more (12%) or even up to 100% more (10%) for sustainable versions of meats and fresh produce. Further, 6% of consumers in this market would be willing to go beyond and cross the 100% mark as well.
Explore our living data - for free
Discover more FMCG content here
Want to run your own research? Run a survey now
Make smarter business decisions with better intelligence. Understand exactly what your audience is thinking by leveraging our panel of 26 million+ members. Speak with us today.
Methodology: YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. The data is based on surveys of adults aged 18+ years in 17 markets with sample sizes varying between 2023/983/1154 and 501/406/491 for each market. All surveys were conducted online in December 2023. Data from each market uses a nationally representative sample apart from Mexico and India, which use urban representative samples, and Indonesia and Hong Kong, which use online representative samples. Learn more about YouGov Surveys: Serviced.
Photo by PhotoMIX Company on Pexels