Shoppers Look Beyond Ecolabels When Buying Sustainable Products

Key Insights from Recent Study on Sustainable Personal Care Products

A comprehensive study by Stanford Graduate School of Business and University of Rochester marketing professors reveals a gap between consumers’ stated preferences for sustainability and their actual purchasing behavior in the personal care sector. Despite the booming market for environmentally and socially responsible products, eco-friendliness and ethical considerations are not the top priorities driving shoppers’ in-store choices.

Study Overview

• Data Analyzed: Six terabytes of sales data covering 30,000 products, including cosmetics, deodorants, shampoo, and toothpaste, sold across U.S. retailers from 2012 to 2019.
• Focus: Products with sustainability-related claims such as cruelty-free status, eco-friendly packaging, and social responsibility.

Findings on Product Labeling:

• About one-third of products had at least one environmental or social claim.
• 29% labeled “cruelty-free” (not tested on animals).
• 14% highlighted eco-friendly packaging, like recyclable materials.
• Fewer than 3% mentioned broader environmental sustainability or fair-trade certifications.

Consumer Behavior vs. Survey Responses

• Survey data (2022) shows 78% of consumers claim sustainable lifestyles are important.
• The purchasing data contradicts this: package size, ingredients, and brand name significantly outweigh sustainability claims in decision-making.
• Sustainable products are often less expensive than their conventional counterparts, indicating sustainability is not a price premium or primary attraction.

Brand Dynamics and Sustainability Strategy

• Large brands offer fewer sustainable options compared to smaller, “fringe” brands.
• Large manufacturers tend to introduce sustainable products via smaller brands they own or acquire (e.g., Unilever’s Schmidt’s, Colgate-Palmolive’s Tom’s of Maine, Clorox’s Burt’s Bees).
• Reasons include:
  • High costs associated with reformulating established product lines for sustainability.
  • Consumer skepticism about greenwashing by large companies.
• Smaller brands with wholly sustainable product lines captured under 5% market share in 2012 but grew to 20% by 2019, indicating increasing consumer preference for authentic sustainable brands.
• Consumers are often willing to pay a premium for products from mission-driven, smaller brands.

Regulatory Landscape and Its Impact

• Consumer demand alone is insufficient to compel large brands to integrate widespread sustainability features.
• Stronger government oversight and regulation could drive more genuine sustainable product offerings.
• Examples of regulatory advances:
  • The European Union requires proof for sustainability claims, banning vague “green” marketing.
  • In the U.S., the 2022 Modernization of Cosmetics Regulation Act expanded FDA oversight.
  • The Federal Trade Commission is actively targeting deceptive environmental marketing.
  • California led the U.S. with a ban on cosmetics tested on animals in 2020; 11 additional states followed by 2024.
• Such regulations, particularly in large markets like California, may compel national brands to update entire product lines.

Conclusion

This study underscores the complexity of consumer behavior regarding sustainability. While shoppers express a strong preference for sustainable lifestyles in surveys, their actual purchasing priorities often lie elsewhere. Meanwhile, smaller, authentic brands drive market growth in sustainability, while big corporations cautiously test the waters via acquisitions or new brand launches. Regulatory frameworks appear critical to encouraging broader adoption of sustainable practices by large manufacturers and ensuring truthful marketing.

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