Blue Yonder: Shoppers Will Pay More for Sustainability

Sustainability is increasingly influencing consumer decisions, but there are limits to how much shoppers are willing to pay and which products they prioritise.

Blue Yonder, a global leader in digital supply chain transformation, has released findings from its fourth annual Consumer Sustainability Survey.

The study, which now includes consumers in the UK, Australia and New Zealand (ANZ), France, Germany and the US, explores attitudes toward sustainable shopping.

According to the survey, 78% of consumers say sustainability is at least somewhat important when choosing a product or retailer. This commitment is particularly strong among younger generations, with 88% of Gen Z and 86% of Millennials considering sustainability in their purchases. Gen X (77%) and Baby Boomers (66%) show lower levels of concern.

However, while many consumers express interest in shopping sustainably, their willingness to pay extra varies depending on the product category.

Everyday essentials vs big-ticket items

While many consumers are prepared to spend more on sustainability, cost remains a major hurdle.

The survey finds that 47% of respondents are willing to pay 5-9.9% more for sustainable products, but only 14% would go beyond that.

A significant 36% are not willing to pay extra at all, with this reluctance highest among Baby Boomers (52%) and shoppers in ANZ (42%), the UK (39%) and the US (38%).

Sustainability is most influential in routine purchases. Consumers are focusing their eco-friendly spending on food and beverages (48%), cleaning products (37%), personal care and beauty items (30%) and clothing and footwear (26%).

However, higher-cost categories like appliances (20%), consumer electronics (19%) and automobiles (19%) see much lower enthusiasm.

"Shoppers are sending a clear message that ethical sourcing and clean ingredients matter in food, cleaning products, beauty and clothing," says Lesley Simmonds, Vice President of Industry Strategy for Retail at Blue Yonder.

"Retailers in these categories can gain an edge by delivering sustainability with credibility, affordability and convenience."

Trust in sustainability claims remains low

Despite growing interest in sustainable shopping, many consumers remain doubtful about brand claims.

Only 20% of Blue Yonder's respondents believe companies are accurately communicating their sustainability efforts in advertising and marketing. Trust is highest in France (25%) and the US (23%) but significantly lower in the UK (17%) and ANZ (13%).

A quarter of respondents (25%) say they do not trust brands’ sustainability claims. Some feel the need to conduct their own research (17%), while 9% believe brands are simply capitalising on sustainability trends without genuine action.

Most consumers (55%) take a middle-ground approach, saying their trust depends on the specific brand, message or history.

The survey also highlights varying opinions on responsibility for sustainability. One-third (33%) say the primary responsibility lies with brands and corporations, 28% believe it should be government-led and 32% think sustainability is a shared responsibility. Only 8% believe environmental non-profits and advocacy groups should take the lead.

AI’s potential role in sustainability also divides opinion. One-third of respondents (33%) are optimistic that AI could lead to new sustainable innovations, while another third (33%) are unsure of its benefits.

Meanwhile, 12% do not expect AI to make much of a difference and 22% worry about its environmental impact, particularly the energy use of data centres.

"Our survey findings indicate that sustainability can be a competitive advantage and drive growth for brands," adds Saskia van Gendt, Blue Yonder’s Chief Sustainability Officer.

"Sustainability can increase operational efficiency, reduce costs, increase customer satisfaction, meet regulatory requirements and improve brand perception.

"To support claims validation, brands and retailers can turn to technology and a multi-tier, multi-enterprise network to improve visibility and authenticate responsible practices across their end-to-end supply chains."

The findings suggest that, while consumer interest in sustainability is growing, brands must do more to build trust and offer affordable, transparent solutions.

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