Consumers Say Yes to Sustainability, but Not at Any Price
Willingness to Pay More for Sustainable Cosmetics Cannot Be Taken for Granted, a Study Reveals
A recent study by the international strategy consultancy Simon-Kucher & Partners found that sustainability in cosmetics and care products is important to 58 per cent of consumers in the DACH region and ranks third on the list of factors affecting purchasing decisions after product quality (72 per cent) and price (70 per cent).
Focus on Packaging
The consultants report that consumers primarily associate "sustainability" with environmentally friendly or recyclable packaging. The authors of the study therefore advise manufacturers in the beauty industry who are looking to improve their sustainability credentials to first invest in appropriate packaging.
However, the study also found that only just over a third of respondents (35 per cent) are willing to pay more for sustainable cosmetics. Within this group, 57 per cent of respondents would be willing to pay a premium of up to ten per cent, while another 31 per cent would be willing to pay up to 20 per cent more, the consultants said.
Product Quality is More Important
Simon-Kucher's conclusion is that for most consumers, "sustainability" is currently more a matter of lip service than of conviction. For this reason, it is important that manufacturers also consider other product characteristics and do not focus solely on sustainability as a trend.
Results of earlier studies show that from the consumer's point of view, factors such as the brand, how long the product lasts, an "animal-friendly" label and at least 95 per cent of the ingredients from natural origins can result in a willingness to spend more money on cosmetics and care products. The analysts nevertheless recommend cultivating a sustainable image, as this should have a positive effect on brand image and therefore potentially on willingness to pay.
Source: Simon-Kucher, photo: Adobe Stock / Yulia Furman