Consumers prepared to pay more for ethical products

Globally, people are willing to pay more for products and services from companies that are committed to positive social and environmental impact, a recent Nielsen survey has found. On average, 55% of consumers said they were prepared to pay more. This is a 5% rise on a year ago and an increase of 10% since 2011.

“This survey reflects the experience of Fairtrade, the world’s most recognised ethical label”, said Molly Harriss Olson, CEO of Fairtrade Australia & New Zealand. “Globally, the Fairtrade market grew by 15% in 2013, with consumer sales hitting €5.5 billion.” This growth has enabled Fairtrade to provide more support and services to farmers and workers in 74 countries.

The Nielsen study found that 64% of consumers in Asia Pacific compared to 40% in Europe are willing to pay more for products from companies with a positive social and environmental impact. This finding augurs well for Fairtrade, who after spending 5 years focusing on developing Fairtrade in Africa, is now turning its attention to the Asia Pacific region.

In 2013, retail sales of Fairtrade Certified products such as coffee, tea and chocolate grew by 11% in Australia and New Zealand, totalling over AU$259.3 million. “Australia has a key role to play in scaling up the market in Asia Pacific,” Ms Harriss Olson said.

The Nielsen survey found that the greatest response to sustainability actions came from Millennials, people currently aged 21-34, who represent51% of those who will pay extra for sustainable products. Only 25% of Generation X and 12% of Baby Boomers claimed to do the same. “This is very positive news,” Ms Harriss Olson said, “as over the next 30 years, these young people will become their nation’s decision makers.”

These findings support the experience of young Australians active in the Fair Trade movement. Laura Sykes, Coordinator of the Melbourne Fair Trade Network, said “I think it is important as young people that we think about the impact of our purchasing choices on the world’s poor and how we can create change by buying ethically.”

Adelaide based Bec Taylor, National Coordinator of Fairly Educated, said “If the Fair Trade movement became the norm, for individuals and businesses, it would improve the lives of millions of people around the globe, reducing the hidden social and environmental costs in many global supply chains”. Fairly Educated is a not for profit initiative that aims to unite university Fair Trade Movements across the globe.

ABOUT THE NIELSEN GLOBAL SURVEY

The Nielsen Global Survey on Corporate Social Responsibility was conducted between Feb. 17 and March 7, 2014, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users, and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6 percent. This Nielsen survey is based only on the behaviour of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
Alexandra de Blas de Blas Communications http://www.deblas.com.au