Shoppers Look Beyond Ecolabels When Buying Sustainable Products

Overview

Consumers value nature but do not always buy products for their ecolabels. Many claim they care about sustainability, yet their choices depend on clear features. Shoppers focus on package size, ingredients, and brand trust. In other words, they support green ideas with practical buying needs.

Key Findings from the Study

A study led by Stanford’s Yewon Kim and University of Rochester’s Kristina Brecko used 6 terabytes of sales data. They examined 30,000 personal care products sold in the U.S. from 2012 to 2019. The findings show:

• One-third of products carry at least one environmental or social claim.
• About 29% are labeled “cruelty-free.”
• Nearly 14% highlight eco-friendly packaging.
• Fewer than 3% mention broader social or environmental efforts.

Even though 78% of surveyed consumers say sustainability matters, their buying habits rarely favor these eco claims.

Consumer Behavior Insights

• Price matters: Shoppers often choose sustainable products because they can cost less.
• Purchase drivers: Consumers value tangible qualities, like package size and ingredients, more than green labels.
• Brand trust: Buyers lean toward smaller, mission-driven brands that focus on sustainable lines instead of large, established names.

Large Brands vs. Fringe Brands

Big brands tend to offer only a few sustainable options under their main labels. They then acquire or launch smaller niche brands to meet market demand. For instance:

• Unilever now owns Schmidt’s Deodorant Company.
• Colgate-Palmolive backs Tom’s of Maine.
• Clorox acquired Burt’s Bees.

These fringe brands show fewer product types and simpler claims. This approach helped them rise from under 5% of the market in 2012 to 20% in 2019. ## Market and Regulatory Implications
Big brands feel little pressure to go fully green unless buyers push for it or strict rules come in. The European Union now demands hard proof for “green” claims, while U.S. rules are still growing. In 2022, the Modernization of Cosmetics Regulation Act expanded the FDA’s role. States like California now ban cosmetics tested on animals, and these steps guide companies toward change.

Conclusion

Consumers say they care about sustainability. Yet their purchases show a mix of priorities where ecolabels play a small role. Fringe brands gain ground and force big companies to innovate. New regulations might soon drive true sustainability across the industry.

Source: Stanford Business Insights, Stanford Graduate School of Business, November 10, 2025
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