Why Do Consumers Demand Sustainability While Refusing To Pay For It?

Reuters reports that consumer goods makers and retailers are investing in sustainable products in response to years of public outcry, but there’s one problem: Retailers are locked in “an uphill struggle convincing people to switch when those products cost more or look inferior.”

This ironic turn of events comes after “shareholders, consumers and regulators have pressured companies — from Kimberly-Clark (KMB.N) and Nestle (NESN.S) to Walmart (WMT.N) — into spending billions of dollars on more sustainable supply chains to produce less environmentally harmful products.”

The sustainability transformation leader at Kimberly-Clark explained that the company is seeing a gap between what people say they want and what they actually purchase. Customers once demanded sustainable products but now aren’t compromising on price and quality. This is the company’s observation after switching to mostly recycled fibers in its Kleenex tissues and Huggies diapers.

By the end of 2022, Kimberly-Clark globally reduced its Scope 1 and 2 greenhouse gas emissions by 42% and Scope 3 emissions by 10.8% compared to 2015, and it sourced about 90% of its tissue fiber from "environmentally preferred" sources.

TheRoundup, a company dedicated to promoting sustainability and environmental awareness, gathered data on consumer habits in relation to sustainability in 2021 and 2022 and shared findings in a recent article. According to TheRoundup's findings, 50% of global consumers said they'd become more eco-conscious in 2021, a trend more prevalent among home-based workers. For instance, 62% of remote workers purchased from green companies, compared to 50% of non-remote workers.

However, eco-friendly products are often perceived as premium, with 79% seeing green transport as pricier, and similar views for other categories like electronics and food. This perception coincides with a time when 74% of consumers are cutting costs due to rising living expenses. In fact, sustainable products carry a 28% price premium, down from 39% in 2018.

As 75% of consumers feel that eco-friendly goods have become more expensive recently, sustainable brands face the challenge of balancing environmental impact and affordability.

An article from 2019 proves that this lingering issue needs to be addressed sooner rather than later. According to Harvard Business Review, “Consumers often have negative associations with sustainable product options, viewing them as being of lower quality, less aesthetically pleasing, and more expensive.”

The article proposes solutions to overcome these challenges, such as to "highlight the product's positively viewed attributes — such as innovativeness, novelty, and safety." Tesla, for instance, "focuses on the innovative design and functional performance of its cars more than on their green credentials — a message that resonates with its target market."

Tapping into the potential of societal persuasion proves to be a powerful tool in promoting eco-friendly consumer habits. However, it's a double-edged sword. When only a handful of individuals adopt sustainable practices, it can create an impression of limited societal acceptance, deterring others from embracing such behaviors. 

Moreover, preexisting perceptions can hinder adoption. For instance, some men perceive sustainable choices as feminine, steering clear of them. Yet, when a brand is deeply rooted in masculine attributes, such biases can be countered effectively. One such brand that was able to achieve this is Jack Daniels, which has used catchy taglines like "Even Jack Daniel’s waste is too good to waste" to make it clear to consumers that sustainability is linked to great taste and quality.

It’s ironic that our culture is now working to sustain the very notion of promoting sustainability, but if the majority of consumers don’t adapt sooner than later, there might not be anything left to sustain.