Experimental Evidence on Consumer Willingness to Pay in Sustainable Fashion

Published in Scientific Reports (November 2025), this study by Cascavilla et al. investigates consumer purchase intentions and willingness to pay (WTP) for sustainable fashion products, focusing particularly on circular economy strategies within the leather industry.

Context and Importance

The fashion industry significantly impacts the environment through high resource consumption and waste generation, marking it as a leading pollution contributor globally. Rising consumer awareness about environmental and social consequences is pushing demand for sustainable fashion. Despite intentions to support eco-friendly products, actual purchases often lag—a phenomenon known as the “attitude–behavior gap.”

Key insights from global research highlight that:

• Around 66% of consumers worldwide are willing to pay more for environmentally friendly products, with European consumers showing slightly stronger preferences (72%).
• Purchasing behavior hinges on pro-environmental and pro-social values but is also influenced by perceived product quality, production costs, availability, and brand image.

Understanding these factors is critical to promoting circular fashion and advancing sustainability.

Research Design & Methodology

The authors employed a combined survey and laboratory experiment to analyze consumer preferences and WTP for three leather bag variants featuring escalating circularity levels:

1. Bag A: Conventional leather bag (CP) from a mainstream brand following a linear "take-make-dispose" model.
2. Bag B: Recycled leather bag (RP) produced by a social enterprise utilizing leather scraps, enhancing supply chain sustainability.
3. Bag C: Re-recycled bag (RRP) made from a new composite material chiefly comprising shredded leather scraps, fully closing the leather loop.

The RP and RRP bags were provided by Cartiera, an Italian social enterprise specializing in upcycling leather scraps through circular, labor-inclusive production that supports asylum seekers.

The study measured:

• Purchase intention (PI) based on pro-environmental and pro-social attitudes.
• Willingness to pay for sustainably produced bags, tested through a multiple-price list auction format.
• The influence of product attributes such as perceived quality and production costs on WTP.

Major Findings

• Pro-social and pro-environmental values significantly drive purchase intentions and are linked to increased willingness to pay.
• Consumers show higher WTP for the most circular products, particularly when these emphasize enhanced material and visual quality.
• Perceptions of higher production costs tied to sustainable methods actually reinforce consumer WTP for circular items, countering conventional price sensitivity.
• Providing information about other consumers’ green behaviors positively affects purchasing decisions.
• Closing the leather production loop (Bag C) is viewed favorably when consumers perceive both environmental benefits and superior product quality.

Theoretical and Practical Contributions

• The study integrates Lancaster’s product attribute theory with the Theory of Planned Behavior (TPB), considering both social norms and individual moral motivations in sustainable consumption.
• It highlights the critical role of behavioral factors and product attributes in overcoming the attitude–behavior gap in sustainable fashion choices.
• The findings suggest that transparent communication about production processes and social benefits can enhance market acceptance.
• For policymakers and industry practitioners, supporting social enterprises like Cartiera can simultaneously promote circular economy goals and social inclusion.

Policy Implications and Future Outlook

To advance sustainable fashion adoption:

• Encourage investments in circular production technologies with visible quality advantages.
• Promote consumer education on the environmental and social benefits of circular products.
• Support social enterprises that empower marginalized groups, leveraging consumer pro-social tendencies.
• Address situational barriers such as pricing and availability through strategic incentives and supply chain improvements.

Such integrative strategies may bridge the attitude–behavior gap and transition the fashion sector towards true sustainability.

References

• [1-20] Cited scientific studies on environmental impact, consumer psychology, and sustainable behavior.
• Cartiera Social Enterprise: A pioneering circular leather producer enhancing sustainability and social inclusion in Italy.

This research underscores the nuanced relationships between values, perceptions, and purchasing behavior in sustainable fashion, providing actionable insights to foster circular economy practices in the industry.

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