Shoppers Look Beyond Ecolabels When Buying Sustainable Products

Key Insights from Recent Research

A study from Stanford and Rochester shows consumer plans to buy green personal care do not become purchases. Consumers state they value sustainability but choose product size, ingredients, and a trusted brand first. This research reveals a clear gap between what people say and what they do.

Study Overview and Findings

• Data used: Six terabytes from 30,000 U.S. personal care products, recorded from 2012 to 2019.
• Sustainability claims: One out of three products makes green claims.
  • Almost 29% say “cruelty-free.”
  • About 14% stress eco-friendly packaging.
  • Under 3% note broader green benefits.
• Consumer surveys vs. behavior: A 2022 survey shows 78% of consumers value sustainability. Yet, in stores, size, key ingredients, and trusted brands affect buying more.

Brand Behavior and Market Dynamics

• Smaller brands lead: Small, niche brands offer more sustainable options. Their market share climbs from under 5% in 2012 to 20% in 2019.
• Larger brands’ strategy: Big companies often use takeovers or launch small brands (for example, Unilever’s Schmidt’s or Colgate-Palmolive’s Tom’s of Maine). They act this way because reformulating products is expensive and risky. Many consumers also view their green claims as greenwashing.
• Consumer preferences: Buyers usually pay extra for sustainable items from mission-driven small brands over products from well-known giants.

Regulatory Landscape and Future Outlook

• Need for oversight: Consumer demand alone does not push large companies to go fully green.
• EU regulations: In the EU, strict rules require proof of green claims. This rule set helps stop greenwashing.
• U.S. developments:
  • The 2022 Modernization of Cosmetics Regulation Act boosted FDA authority.
  • The FTC has stepped up actions against false eco-claims.
  • Eleven states, starting with California in 2020, have banned animal-tested cosmetics.
• Upcoming research: New studies will examine how these rules change market behavior and product makeup.

Conclusion

This research shows a clear gap between consumer words and actions for sustainable personal care. Big brands face hard choices when truly embracing green practices. Meanwhile, mission-driven small brands win loyal customers by offering real green options. New rules, like the EU’s, may drive a better and greener industry.

Source: Study by Yewon Kim, Stanford Graduate School of Business and Kristina Brecko, University of Rochester, Stanford Business Insights, November 10, 2025.

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