Consumers who value affordability over sustainability worldwide 2022, by generation

According to a consumer demand survey conducted by Capgemini Research Institute in late 2022, opinions regarding affordability versus sustainability were rather mixed. Overall, about 54 percent of consumers worldwide said they valued the affordability of a product above whether the product is sustainable. For more Capgemini insights, click here.

The cost of being sustainable

Producing more sustainable products tends to be a more difficult and expensive undertaking, which is why eco-friendly goods tend to come with a higher price tag. Considering how expensive life already is for many, it comes to no surprise that not all consumers are willing to pay a large sustainability premium. In 2022, the average premium deemed acceptable for sustainable consumer goods stood at approximately 24 percent. As anticipated, individuals with a higher annual income were willing to pay a higher average premium than those with a lower income.

Impact of inflation

Rising prices have had an impact on consumer attitudes and behavior in 2022 and 2023. When it becomes a struggle to afford day-to-day expenses, shoppers are less likely to worry about the sustainability or ethics of the goods they buy. During a global survey conducted in 2023, the number one worry among consumers was by far the issue of inflation. Far fewer survey respondents selected “climate change” as an important issue facing the world.