Consumers are willing to pay more for sustainable products in some categories, but not others, a new study by Blue Yonder has found.
The digital supply chain transformation firm’s fourth annual Consumer Sustainability Survey, found that close to four fifths (78%) of consumers consider sustainability to be an important factor in their purchasing decisions, with this sentiment highest among Gen Z (88%) and Millennials (86%), compared to Gen X (77%) and Baby Boomers (66%).
On a country-by-country basis, French consumers (86%) consider sustainability an important purchase factor, followed by Germany (79%), the U.K. (78%), Australia and New Zealand (75%) and the U.S. (74%).
However, despite consumers’ best intentions, ‘they may be unwilling or unable to live these values in practice’, the study notes, given the high cost associated with sustainable choices in some categories.
The cost of sustainability
Some 54% cite that price is an issue when aligning their purchasing behaviours with sustainability, with shoppers willing to pay more for sustainable products in categories such as food and beverage (48%), cleaning products (37%), personal care and beauty (30%) and clothing and footwear (26%).
However, costlier product categories see much lower engagement – with just 20% of respondents saying they would be willing to pay more for sustainable appliances, followed by consumer electronics (19%) and automotive (19%).
‘Credibility, affordability and convenience’
“Our respondents are sending a message that ethical sourcing and clean ingredients matter when it comes to food, cleaning products, beauty, and clothing,” commented Lesley Simmonds, vice president, Industry Strategy – Retail, Blue Yonder. “Retailers in these categories can gain a clear competitive advantage and grow their business if they execute with credibility, affordability and convenience in mind.”
When asked how much more they would be willing to spend on sustainable products, close to half (47%) said they would pay between 5% and 9.9% more, with 14% open to paying between 10% and 19.9% more. Just 4% would consider spending over 20% more, while 36% are unwilling to pay any premium for sustainability, according to the study.
In addition, there is a low level of trust in brands’ sustainability claims, according to the study, with just one in five respondents (20%) believing brands accurately communicate their sustainability efforts.
One quarter (25%) feel that they ‘cannot trust’ brands’ sustainability claims, while 55% feel they can sometimes trust brands’ sustainability claims, depending on the message, brand, or history.
“Our survey findings indicate that sustainability can be a competitive advantage and drive growth for brands,” van Gendt added. “Sustainability can increase operational efficiency, reduce costs, increase customer satisfaction, meet regulatory requirements, and improve brand perception. To support claims validation, brands and retailers can turn to technology and a multi-tier, multi-enterprise network to improve visibility and authenticate responsible practices across their end-to-end supply chains.”
Blue Yonder’ 2025 Sustainability Survey was conducted in February 2025, polling over 5,000 consumers across Australia and New Zealand, France, Germany, the U.K., and the U.S. Read more here.
