Consumers prefer sustainable products, but identifying them is challenging with over 450 ecolabels available. Studies relying on self-reported data overstate consumer purchase of sustainable products. A recent study analyzed actual purchases using product labels and found that only 7% consistently buy sustainable products, while 22% do so if personal benefits are offered. Increasing consumer education on eco-labels is crucial. Despite the majority not prioritizing product sustainability, government focus and cost-efficiency will likely drive the market towards more sustainable products.

Consumers increasingly prefer to purchase sustainable and healthy products. This trend is important if we are to meet the United Nations Sustainable Development Goals.

What is the most common way for purchasers to identify a product that is more sustainable? An ecolabel, of course. But, did you know that there are more than 450 ecolabels globally? 

So what types of sustainable products are consumers purchasing? It’s difficult to know because most studies about consumer preferences are based on self-reported purchases rather than consumers’ actual purchases. Moreover, when asked, consumers tend to overstate their sustainability and health-conscious purchases. 

The problem with this situation is that companies wishing to market their sustainable and health-conscious products are faced with incomplete information about their market opportunities. Managers are asking:

• How big is the market for sustainability and health-conscious products?
• How many consumers consistently purchase sustainable and health-conscious products?
• What differentiates consumers who purchase sustainable and health-conscious products from other consumers? 

In our recent study, we assess consumers’ actual purchases of sustainable and health-conscious products to address these questions. 

By relying on product labels, we investigate consumers’ actual purchases across more than 370,000 purchasing transactions and five categories of product labels promoting:

 (1) social equity and fair wages 

(2) ecological sustainability 

(3) personal health 

(4) organic production, and 

(5) vegan lifestyles. 

Additionally, we consider whether consumers are motivated more to purchase products that offer personal benefits or public benefits. 

By assessing consumers’ actual purchasing data, we show that only 7% of consumers are consistently purchasing sustainability-related labels, regardless of the benefits that they offer, personal or public. However, another 22% purchase sustainability-related labels if the product offers personal benefits, like saving money from energy or water conservation or improving health. Combined, this accounts for 29% of the total market. So, firms that can deliver products which appeal to these consumers may be rewarded with considerable market opportunity. That’s a sizable portion of the market for businesses to appeal to!

Additionally, with 71% of consumers not caring about a product’s sustainability attributes, if we are to meet the United Nations Sustainable Development Goals, our study identifies a significant need to increase consumer education and awareness about sustainability product labels. Such awareness can bolster the market for more sustainable products and meet our global sustainability goals.

Finally, as more governments increase their focus on sustainable purchasing, product markets are likely to shift towards producing and delivering more sustainable products to the consumer market. This is likely to happen whether or not consumers are demanding these products as it is often more expensive for a company to run multiple different product lines for its different clients.