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

The market for personal care products has grown fast. These products claim to help the environment and society. A recent study from Stanford shows a clear gap. Consumers say they prefer sustainable options. Yet their buying choices speak differently.

Study Overview

Researchers Yewon Kim (Stanford) and Kristina Brecko (University of Rochester) looked at six terabytes of sales data. They reviewed 30,000 health and beauty products sold by U.S. retailers from 2012 to 2019. They checked each product for claims on sustainability. These claims include protecting the environment, avoiding animal testing, and using eco-friendly packaging.

Key Findings

• Prevalence of Sustainability Claims:

  • 33% of products show one or more environmental or social claims.
  • 29% of products carry the “cruelty-free” label.
  • 14% mention eco-friendly packaging, like recyclable materials.
  • Fewer than 3% list broad claims, such as lower greenhouse gas emissions or fair-trade certifications.

• Consumer Purchases vs. Stated Values:
  In 2022, 78% of survey respondents said they wanted to live sustainably. Yet, buyers chose products mostly for package size, ingredients, and brand names instead of sustainability. Many sustainable products even cost less than their non-sustainable rivals. This shows that price and traditional factors guide purchase decisions more than eco-labels.

• Role of Brand Size:
  Big brands often offer fewer sustainable options. They do not change their main products because reformulation is expensive and risky. Instead, they start or buy small, sustainable brands. For example, Unilever owns Schmidt’s Deodorant and Colgate-Palmolive owns Tom’s of Maine.

• Market Share Growth:
  Sales of sustainable personal care items from small brands climbed from under 5% of the market in 2012 to 20% in 2019. Consumers show more trust in small brands with fully sustainable lines. They even pay more for these mission-driven products.

Implications for Industry and Regulation

• Limited Incentive for Large Brands:
  Consumer demand alone does not push large brands to add more sustainable choices to their lines.

• Regulatory Influence:
  Government rules may help drive true sustainable practices. The European Union’s eco-labeling rules set a strong example. In the U.S., steps include:

  • The Modernization of Cosmetics Regulation Act (2022), which gives the FDA more power.
  • The FTC’s action against fake “green” claims.
  • State measures, such as California’s ban on animal-tested cosmetics, soon adopted by 11 states.

• Anticipated Impact of Legal Mandates:
  New research will study how these rules change brand behavior. Large companies may have to update whole product lines to meet state rules in key markets like California.

Conclusion

This study paints a clear picture. Ethical values and eco-friendly messages win in surveys, but buying choices lean on price, brand, and product details. A true shift toward sustainability needs three things: smart buyers, genuine small brands, and firm rules from regulators.

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