The greatest barriers for consumers for sustainable purchasing today include affordability, accessibility, and communication. Affordability is at the top of that list - 33% of consumers said sustainable alternatives were still too expensive to purchase. Current market dynamics will only exacerbate this trend. Recent inflationary pressures around the world will have a dampening effect on the purchases of sustainable goods and services. Inflation will lower Inflation as a barrier Companies can drive volume by addressing consumer barriers
Recent inflationary pressures have had a dampening effect on purchasing sustainably
consumers’ overall purchasing power, with most households deprioritizing sustainable goods due to their higher prices and households’ need to be more selective in which categories to be sustainable in. According to the 2022 Global Sustainability Study 33%, of consumers said they were less likely to buy sustainable goods and services due to inflation. And since then, inflation has climbed still higher in many markets. Inflation won’t stop the adoption of sustainable products. But it may slow down the shift of sustainability going from the exception to the expectation, and it also has a dampening effect on capturing willingness to pay.
Very few consumers view inflation as a negligible factor to buying decisions for sustainable goods
Higher inflation has negatively affected the buying power of sustainable goods/services
33%
33%
28%
17%
13%
Less likely to buy due to inflation
Other goods are more expensive, affecting my ability to purchase sustainable goods/services
Sustainable goods/services do not have the same problem with inflation as other options
Inflation does not impact my decision
More selective in which categories I buy
Seeing it through
Consumers consider these to be the biggest blockades in buying more sustainably
Affordability Sustainable alternatives are too expensive Lack of Access Insufficient access to sustainable alternative Lack of Clarity Uncertainty on when a product is sustainable
33%
While there are still headwinds and current macroeconomic barriers to address in order to turbocharge growth and volume for sustainable goods and services, the business imperative has never been stronger if companies want to survive for the long-run. A combination of consumers, companies and regulatory bodies must work in harmony to drive towards positive change, especially as sustainability continues the move towards expectation rather than exception.
25%
21%
Lack of Trust Sustainable alternatives are not sustainable (green washing)
14%
Inconvenience Sustainable alternatives are inconvenient
3%
21 Environmental sustainability in business
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