Shoppers Look Beyond Ecolabels When Buying Sustainable Products

Consumer Behavior vs. Sustainability Claims

Despite a surge in environmentally and socially responsible personal care products over the past decade, shoppers often prioritize factors other than sustainability when making purchases. A study led by Stanford Graduate School of Business assistant professor Yewon Kim and University of Rochester’s Kristina Brecko analyzed six terabytes of sales data for 30,000 products sold in U.S. retailers from 2012 to 2019, revealing important insights:

• One-third of personal care products carried at least one environmental or social claim.
• Nearly 29% were labeled “cruelty-free.”
• About 14% highlighted eco-friendly packaging.
• Fewer than 3% referenced broader environmental sustainability or social responsibility issues like greenhouse gas reductions or fair-trade certification.

However, while 78% of surveyed consumers in 2022 said sustainable lifestyles mattered to them, actual purchasing behavior showed that package size, ingredients, and brand name were stronger purchase drivers than sustainability.

Pricing and Brand Dynamics

Interestingly, sustainable products tended to be less expensive than comparable conventional products, indicating that eco-friendly claims are not the key selling point.

Large manufacturers generally offer fewer sustainable options under their flagship brands. Instead, they introduce such products through smaller, niche “fringe” brands, which carry stronger authenticity and align better with consumer expectations. Examples include:

• Unilever’s ownership of Schmidt’s Deodorant Company.
• Colgate-Palmolive’s Tom’s of Maine.
• Clorox’s Burt’s Bees.

Smaller “fringe” brands have rapidly gained market share, capturing 20% of the personal care market by 2019, up from less than 5% in 2012. ## Challenges for Large Brands

Two major challenges deter large brands from fully integrating sustainability into their core lines:

1. Cost of reformulating products to meet sustainability standards.
2. Consumer skepticism and suspicion of greenwashing when large companies promote sustainability.

Consumers also show a preference for buying sustainable products from mission-driven smaller brands and are sometimes willing to pay a premium for perceived authenticity.

Regulatory Influence and Future Prospects

The study underscores that consumer demand alone is insufficient to push established brands toward sustainability. Instead, regulation is key:

• The European Union enforces strict evidence requirements for sustainability claims.
• The U.S. FDA gained enhanced oversight of cosmetic products with the 2022 Modernization of Cosmetics Regulation Act.
• The Federal Trade Commission actively prosecutes deceptive green claims.
• Eleven states, starting with California in 2020, have banned the sale of cosmetics tested on animals.

Kim and Brecko’s forthcoming research will evaluate how these legislative changes are reshaping industry practices, noting that regulations originating in large states like California could drive nationwide reform.

Conclusion: While consumers express strong intentions to support sustainable products, real-world buying choices prioritize traditional product features. Smaller brands, including those owned by large corporations, lead in providing genuinely sustainable options. Greater regulatory scrutiny and consumer education may be necessary to align market offerings with sustainability objectives.

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

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