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Shoppers Look Beyond Ecolabels When Buying Sustainable Products

Overview

A study by Stanford Graduate School of Business marketing professor Yewon Kim and University of Rochester’s Kristina Brecko reveals that while the market for environmentally and socially responsible personal care products has grown significantly, shoppers often prioritize factors other than sustainability when making purchases. Despite public surveys showing strong interest in sustainable lifestyles, actual buying behavior tells a more complex story.

Key Findings

• Product Claims: One-third of personal care products analyzed (2012-2019, U.S. retailers) included at least one environmental or social claim. “Cruelty-free” labels appeared on nearly 29%, while 14% noted eco-friendly packaging. Less than 3% referenced direct environmental sustainability or social responsibility certifications.
• Consumer Purchase Drivers: Shoppers favored package size, brand name, and ingredients over sustainability claims. Sustainable products were often less expensive, indicating sustainability is not always the main selling point.
• Market Share Growth: Sustainable small “fringe” brands increased their personal care market share from under 5% in 2012 to 20% in 2019.
• Brand Strategy: Large manufacturers offer fewer sustainable options under flagship brands, instead launching or acquiring smaller sustainable brands (e.g., Unilever with Schmidt’s, Colgate-Palmolive with Tom’s of Maine). This approach helps avoid skepticism about greenwashing.

Consumer Attitudes vs. Behavior

While 78% of respondents in a 2022 survey emphasized the importance of sustainable lifestyles, Kim and Brecko’s research shows a disconnect between stated preferences and actual purchases. Consumers demonstrated willingness to pay a premium for sustainable products from mission-driven smaller brands but were less motivated by the sustainability features on established brands.

Regulation and Industry Impact

• Oversight Growth: Recent legislation, such as the U.S. Modernization of Cosmetics Regulation Act (2022), has increased FDA authority over personal care products. The Federal Trade Commission is cracking down on misleading eco-claims.
• State Initiatives: California’s 2020 ban on cosmetics tested on animals has been adopted by 11 other states as of early 2024.
• European Union’s Lead: The EU enforces strict proof requirements for sustainability claims, a model that may shape future U.S. regulation.
• Future Research: The authors are studying how new rules impact product lines, noting that regulations in large markets like California could drive national brand changes.

Implications for Brands and Consumers

• Large companies face economic incentives and consumer skepticism that limit sustainable reformulation of main product lines.
• Smaller brands more easily build authentic sustainable identities and capitalize on rising consumer demand.
• Regulation and enforcement may become key drivers for broader adoption of sustainability features in the personal care industry.

Source: Stanford Graduate School of Business, May 6, 2025
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