On sustainability, consumers have made up their mind

Consumers are increasingly putting their money where their values are, according to PwC’s June 2023 Global Consumer Insights Pulse Survey. Even in the face of economic headwinds—96% of the survey’s respondents intend to adopt cost-saving measures in the next six months—a solid majority (80%) of consumers say they’re willing to pay up to 5% extra for locally sourced or made products. Comparable shares of respondents say they’d do the same for a range of goods produced in similarly sustainable ways. An impressive four in ten consumers will pay up to 10% extra for such products, and 7% will pay even more than that, with gen Z and millennials showing the most willingness to accept a sustainability premium. The findings build on those of the previous edition of the survey, conducted in February 2023, in which 70% of respondents said they’re willing to pay more for sustainably produced goods ‘to some or to a great extent.’

This should be good news for companies seeking to boost their pricing power without sacrificing their commitment to sustainable practices. Those companies should build on the momentum by conducting product life cycle cost analysis to optimise a pricing strategy for sustainable goods. They should also effectively communicate the sustainability benefits of products through credible reporting that emphasises the long-term benefits and value proposition of sustainable choices. That kind of transparency can be key to building trust with the ever-growing segment of consumers who are seeking to buy from companies that share their values.