Consumer Interest in Green Products not Affected by Economic Fluctuation, Says Shopify Report
The report says that people are becoming more aware of how their purchases affect the environment and are willing to spend more on products that are good for the environment. Even when the economy is constantly changing, this trend is likely to keep going as people become more aware of the long-term benefits of sustainable products.
The report from Shopify indicates that despite economic challenges, consumers are still willing to spend on sustainable products and services. This shows that sustainability is becoming more and more important to consumers when they decide what to buy.
Additionally, the majority of businesses surveyed believe that implementing sustainability measures is positively impacting their performance, which could lead to more businesses prioritising sustainability in the future.
A majority of consumers globally are prioritising green goods, with 54% claiming to shop sustainably by choosing retailers that offer carbon-neutral shipping. Consumers are also proactively changing their behaviours to seek planet-positive options, such as products that are recyclable, feature eco-friendly packaging, or are locally sourced.
Younger consumers, specifically Gen Z and millennials, are driving the conscious commerce trend, with 59% and 61%, respectively, claiming to shop sustainably, and almost one in three planning to step up their green shopping this year.
Interest in green products is on the rise despite the cost-of-living crisis, with more than a third of consumers globally and 42% in the UK revealing they are curtailing spending.
Shoppers are willing to pay extra for sustainability initiatives, with almost half willing to pay extra to cut carbon and 26% claiming retailers that stand by their values have a better chance of retail loyalty. However, businesses are facing obstacles in funding green schemes, with 40% of businesses with between one and 50 employees and 48% of larger firms—those with between 501 and 1,000 staff—feeling that funding is a "real obstacle" to progress.
Even though there are problems, bigger businesses are more likely to see the current economic situation as a chance to speed up sustainability programmes. 46 per cent of larger businesses plan to increase their green efforts.
"This report shows climate consciousness is driving purchasing decisions, even in challenging economic times," said Stacy Kauk, head of sustainability at Shopify. "For both business and the climate, it's in everyone's interest to implement practices like carbon-neutral shipping and support for emerging sustainability solutions. This needs to be a collaboration between merchants, buyers, and the broader commerce community."
James Trippett, founder and managing director of the eCommerce agency By Association Only, said that with conscious shopping on the rise, it is more important than ever for businesses to show their brand values at every point where customers interact with them.
"Taking action on climate must come first," he said. "Crafting compelling stories, alongside bespoke experiences that encourage consumers to engage in sustainable activity, will be essential in a climate-conscious world."