Many shoppers expect brands and retailers to “walk the walk” when it comes to sustainability commitments. Products with environmental, social, and governance-related claims gain 1.7 percentage points of sales growth compared with products that don’t, senior partner Dymfke Kuijpers and coauthors explain. Millennials and Gen Z especially indicate a willingness to pay more for products that are environmentally friendly.
Image description:
A set of 5 squares, each totaling 100%, represent respondents’ attitudes toward premiumization and sustainability with respect to consumer goods. The squares, from left to right, represent the following 5 respondent groups: overall respondents, baby boomers, Generation X, millennials, and Generation Z. The exhibit shows the share of respondents who are willing to pay more for environmentally friendly products. The respondent ratings are as follows: overall, 28%; baby boomers, 16%; Gen X, 23%; millennials, 48%, and Gen Z, 49%.
Footnote: Question asked of survey respondents: Think about the following types of food/services. Which statement best describes your attitude?
Source: McKinsey State of Grocery Consumer Survey, July 7–15, 2023 (n = 2,011, sampled and weighted to match the US general population aged 18+).
End of image description.
To read the article, see “The state of grocery in North America 2023,” September 25, 2023.