Shoppers Look Beyond Ecolabels When Buying Sustainable Products

Insights from Stanford Graduate School of Business Study — May 6, 2025

Despite widespread consumer interest in sustainability, actual purchasing behaviors around personal care products reveal a complex picture. A comprehensive study led by Stanford marketing professors Yewon Kim and Kristina Brecko analyzed six terabytes of sales data across 30,000 U.S. products from 2012 to 2019, revealing important trends in eco-conscious buying.

Key Findings: Consumer Behavior vs. Sustainability Claims

• Prevalence of Claims: About one-third of personal care products (cosmetics, deodorants, shampoos, toothpaste) make environmental or social claims. Nearly 29% were labeled “cruelty-free,” 14% cited eco-friendly packaging, but under 3% referenced broader environmental sustainability or social responsibility.

• Consumer Preferences: Although 78% of consumers in a 2022 survey valued a sustainable lifestyle, in-store purchases were primarily influenced by package size, ingredients, and brand reputation rather than sustainability features. Sustainable products often cost less, indicating eco-friendliness isn’t their main selling point.

• Market Share Shifts: Smaller “fringe” brands offer more sustainable options compared to large manufacturers, which tend to offer these options through their smaller or acquired brands. Between 2012 and 2019, sustainable product market share among small brands rose from under 5% to 20%.

Why Large Brands Hesitate on Sustainability

• Costly Adjustments: Reformulating existing products to meet sustainability standards is expensive, with limited consumer demand incentives for large brands.

• Greenwashing Skepticism: Consumers are wary of larger companies’ green claims, perceiving them as potentially misleading. Hence, large companies launch or acquire smaller mission-driven brands (e.g., Unilever’s Schmidt’s Deodorant) to reach sustainability-minded customers authentically.

Legal and Regulatory Environment

• Europe’s Lead: EU regulations require companies to substantiate sustainability claims with evidence, curbing vague “green” marketing.

• U.S. Progress: The 2022 Modernization of Cosmetics Regulation Act empowered the FDA to oversee personal care product safety more rigorously, while the FTC targets deceptive environmental advertising. Additionally, 12 states, starting with California in 2020, have banned animal testing for cosmetics.

• Future Outlook: Ongoing studies aim to track how evolving laws impact industry practices, especially as state mandates may force nationwide product line changes for large brands.

Conclusion

While consumer surveys indicate strong interest in sustainable lifestyles, actual purchase decisions in personal care prioritize product features beyond ecolabels. Smaller brands lead in offering authentic, fully sustainable products, whereas larger companies cautiously introduce eco-friendly options primarily through niche acquisitions. Regulatory frameworks, increasing in rigor globally, are critical for driving more substantial industry-wide adoption of sustainable practices.

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Source: Stanford Graduate School of Business

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