Shoppers Look Beyond Ecolabels When Buying Sustainable Products

A new study by Stanford Graduate School of Business and University of Rochester shows a clear gap. Consumers say they want sustainability. Yet, they choose personal care products for different reasons.

Key Findings

• Consumer Intent vs. Behavior:
  In 2022, 78% of people said living sustainably matters. In stores, they pick items for package size, ingredients, and brand names. They give less weight to eco-friendliness.

• Prevalence of Sustainability Claims:
  Researchers checked 30,000 health and beauty products from 2012 to 2019.
  • 33% carried environmental or social claims.
  • 29% were marked “cruelty-free.”
  • 14% noted eco-friendly packaging.
  • Fewer than 3% mentioned overall sustainability or social steps.

• Price and Sustainability:
  Sustainable products usually cost less than similar non-sustainable ones. This shows that price often drives decisions.

• Large vs. Small Brands:
  Big companies offer sustainable lines under smaller brands. They do not change their main products. For example, Unilever acquired Schmidt’s Deodorant and Colgate-Palmolive owns Tom’s of Maine.

• Market Share Growth:
  Small sustainable brands grew quickly. Their share rose from under 5% in 2012 to 20% in 2019. Consumers are ready to pay more for brands that follow a mission.

Industry and Regulatory Insights

• Economic Incentives:
  Large, loyal brands see little profit in a full green change. They act only when there is clear need.

• Consumer Skepticism:
  Shoppers distrust green claims from big firms. This doubt pushes companies to launch smaller, trusted brands.

• Regulatory Environment:
  The European Union sets strict rules. Firms must prove any sustainable claim.
  In the United States, new FDA power under the 2022 Modernization of Cosmetics Regulation Act helps enforce these rules. The FTC also steps in against false claims.
  Bans on animal-tested cosmetics started in California in 2020 and now cover 12 states by 2024. – Potential Impact:
  New rules may push large brands to act green. Big states with strong mandates can drive wider change.

Conclusion

The study makes one thing clear. Consumers talk about sustainability, yet buy based on size, taste, and brand. Smaller, trusted brands lead the way in sustainability. Meanwhile, regulatory pressures may force large companies to change.

Source: Study by Yewon Kim (Stanford GSB) and Kristina Brecko (University of Rochester), Stanford Business Insights, Nov 2025

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