The perceived “sustainability premium” is a barrier to 54% of consumers aligning their purchasing behaviours with sustainability, according to new research.
The study from supply chain tech provider Blue Yonder which took place in February 2025 and surveyed 5,000+ consumers across Australia and New Zealand, France, Germany, the UK and the US, found consumers are willing to face the cost of sustainable shopping for some purchases but not others.
When asked which product categories they had focused their sustainability efforts in, consumers cited food and beverage (48%), cleaning products (37%), personal care and beauty (30%) and clothing and footwear (26%). More expensive categories such as appliances (20%), consumer electronics (19%), and automotive (19%) proved less popular in terms of consumers thinking sustainably when making a purchase.
In summary, the findings suggest that while consumers are willing to pay a sustainability premium for routinely purchased products, they are not as willing to do so for higher-cost occasional purchases. The study attributes this to perceived high costs associated with sustainable product options and consumer wariness of brand sustainability claims and messaging.
According to the Blue Yonder survey, 78% of consumers said sustainability considerations are somewhat or very important when choosing to buy a product or shop at a retailer. These considerations are especially important in younger generations like Gen Z (88%) and millennials (86%), while the figures at 77% and 66% for Gen X and baby boomers respectively.
France at 86% topped the country rankings for strong consumer sustainability sentiment.
Lesley Simmonds, vice president for retail industry strategy at Blue Yonder, commented: “Our respondents are sending a message that ethical sourcing and clean ingredients matter when it comes to food, cleaning products, beauty, and clothing.
“Retailers in these categories can gain a clear competitive advantage and grow their business if they execute with credibility, affordability, and convenience in mind.”
Some 47% of consumers reported a willingness to spend an additional 5–9.9% more on sustainable products. An additional 14% of consumers indicated they were willing to spend 10–19.9% more, while 4% were willing to spend more than 20% on more sustainable items.
On the flip side, 36% said they were not willing to spend a sustainability premium on products.
With the Digital Markets, Competition, and Consumers Act coming into force in the UK on 6 April, the survey findings on greenwashing make for interesting reading. Only 20% of consumers believe brands are accurately communicating their sustainability initiatives in their ads and marketing, with just 17% of UK respondents believing so.
One-quarter of global consumers feel they cannot trust brands’ sustainability claims, with 17% saying they feel the need to do additional research and 9% saying they feel brands capitalise on sustainability as a trend whether their actions are authentic or not.
From this month in the UK, any businesses selling online must substantiate green claims, and provide a holistic picture of their environmental commitments. Under the terms of the new act, the Competition and Markets Authority will be empowered to impose fines of up to 10% of global revenue on companies in breach of the rules.
[image credit: Green Retail World]
