Design Delight Studio

Shoppers Look Beyond Ecolabels When Buying Sustainable Products

A recent comprehensive study reveals a notable gap between consumers’ stated desire for sustainability and their actual purchasing behaviors in the personal care market. While many shoppers claim to prioritize eco-friendly and ethical products, factors like packaging size, ingredients, and brand reputation influence buying decisions more strongly than sustainability claims.

Key Findings from the Study

• Scope and Data: Researchers Yewon Kim (Stanford Graduate School of Business) and Kristina Brecko (University of Rochester) analyzed 30,000 health and beauty products sold in U.S. stores from 2012 to 2019, compiling over six terabytes of sales data.

• Claims on Packaging: One-third of products carried at least one environmental or social claim.

  • 29% labeled as “cruelty-free”
  • 14% used eco-friendly packaging claims
  • Fewer than 3% mentioned broader environmental or social responsibility certifications such as reduced greenhouse emissions or fair-trade

• Consumer Behavior: Despite 78% of survey respondents in 2022 saying sustainability was important, actual purchases prioritized traditional attributes over sustainability.

• Pricing Trends: Sustainable products often cost less than their non-sustainable counterparts, indicating low price premiums for eco-features.

Big Brands vs. Smaller Sustainable Brands

• Large manufacturers tend to offer fewer sustainable options under their flagship brands but acquire or launch smaller “fringe” brands with clearer sustainable positioning.
• Examples include Unilever’s acquisition of Schmidt’s Deodorant and Colgate-Palmolive’s ownership of Tom’s of Maine.
• These smaller brands grew market share from under 5% in 2012 to 20% by 2019 in personal care.
• Consumers show willingness to pay more for sustainable products from mission-driven fringe brands than from larger, established companies.

Challenges and Regulatory Landscape

• Why Big Brands Hesitate: Overhauling existing product lines for sustainability is costly, and consumers often distrust large companies’ green claims, suspecting greenwashing.
• Legal Oversight Growing: The EU enforces strict proof requirements for sustainability claims; the U.S. is increasing regulation through laws like the 2022 Modernization of Cosmetics Regulation Act, and multiple states have banned animal-tested cosmetics.
• Researchers anticipate such regulations will pressure national brands to reformulate or rethink sustainability strategies, especially given mandates from influential states like California.

Conclusion

The study underscores that consumer demand alone does not sufficiently incentivize established personal care brands to adopt sustainability widely. Sustainable product success often depends on authenticity perceived in smaller brands and increasing regulatory rigor. For brands aiming to thrive in sustainability, transparency, credible claims, and alignment with consumer values remain crucial.

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