Shoppers Look Beyond Ecolabels When Buying Sustainable Products: Key Insights from Stanford Study

Growing Market Yet Limited Impact of Sustainability Claims

Demand for responsible personal care products has grown a lot over the past decade. Stanford Graduate School of Business and University of Rochester researched this growth. Their work shows that even though consumers want a sustainable life, they often choose items for reasons other than eco-friendliness.

Study Overview and Major Findings

Kim and Brecko used six terabytes of sales data from 30,000 U.S. products sold between 2012 and 2019. Their work ties each idea closely to the next. They found that:

• Each product carries clear links between its claims and features. One-third show an environmental or social claim. Nearly 29% say “cruelty-free,” and about 14% mention eco-friendly packaging. Fewer than 3% indicate wider environmental or social roles.
• Survey data ties stated values to purchase trends. Seventy-eight percent of 2022 survey respondents claim that a sustainable life matters. Yet, they buy based on package size, ingredients, and brand rather than sustainability.
• Price links tie sustainable products to affordability. In many cases, these products cost less than similar non-sustainable ones. This means that the eco claim is not the main buying force.

Big Brands vs. Smaller "Fringe" Brands

The study shows a clear divide. Large brands and small brands form different links to sustainability:

• Large manufacturers put few sustainable items in their main lines. Their overall link to sustainability is weak.
• Large companies boost sustainability by linking to smaller “fringe” brands. These brands feel more authentic to the buyer. They also steer clear of greenwashing doubts. For example, Unilever now links to Schmidt’s Deodorant, and Colgate-Palmolive connects to Tom’s of Maine.
• The market share link for small sustainable brands grows fast. In 2012, these brands had less than 5%; by 2019, they held a 20% share.

Consumer Preferences and Willingness to Pay

Consumers make quick word-to-word links. They like products from brands that are fully sustainable. They even pay more for goods from mission-driven, smaller brands compared to big names that mix sustainable with non-sustainable traits.

Regulatory Environment Influences Sustainable Product Development

Consumer choice alone does not close the gap. Rules that tie actions to clear proof change the game:

• In the European Union, rules force proof of environmental impact. This link makes sustainability claims clear.
• In the United States, new rules give the FDA more oversight through the 2022 Modernization of Cosmetics Regulation Act. The FTC also works hard against false eco claims.
• State actions show further links. California leads with bans on animal-tested cosmetics, and 11 more states followed by early 2024. Kim and Brecko continue linking research points. They now study how these legal rules tie back to company choices. Large markets, such as California, may shift national product lines.

Conclusion

Consumers like sustainable personal care products. Yet, their purchase links often tie to other concerns over pure sustainability. Large brands thus keep these products separate in smaller divisions to hold fast to authenticity and lower risk. Strong rules may be the link needed for industry-wide change.

This summary is based on research originally published by Stanford Business Insights in November 2025.

Design Delight Studio curates high-impact, authoritative insights into sustainable and organic product trends, helping conscious consumers and innovative brands stay ahead in a fast-evolving green economy.