When making purchasing decisions, more and more consumers are considering ethics.
According to a recent survey, nearly half of American consumers identify as ethical buyers. So what does that mean for businesses?
In this post, we’ll take a closer look at the ethical consumers statistics to understand better how ethical consumers impact the market or business. Stay tuned!
Editor Choice on: Ethical Consumption Statistics
- Global Ethical Food market size reach $727.86 . (Research and Market)
- 90 percent of survey respondents in the United States reported that they would be prompted to boycott a brand for irresponsible business actions.
- 56 percent of US consumers stop buying from companies they believe are unethical.
- 60% were reporting making more environmentally friendly, sustainable, or ethical purchases since the start of the pandemic.
- 68 percent of Americans are confused about what certain ethical icons mean, with nearly half (46 percent) confused about the meaning of certain ethical terms.
- 62% Australian consumers have become more aware of the impacts of their purchasing decisions.
- In 2020, renewable energy sources accounted for about 12% of total U.S. energy consumption and about 20% of electricity generation.
Ethical Consumption Statistics
- Global Ethical Food market size reach $727.86 . (Research and Market)
- 87% consumer will buy a product with social environments benefits. (CSR Study)
- 87% will purchase a product because a company advocated for an issue they cared about.
- 76% will refuse to purchase a company’s products or services upon learning it supported an issue contrary to their beliefs.
- Ethical Consumer market size reach £122bn in UK. (Ethical Consumer Market Report 2020)
- 87% Australian want to change their clothing and fashion consumption habits to consume more ethically in the future. (The Australian Ethical Consumer Reports)
- 39% Australian don’t know which brands are ethical (Barriers to Shop ethically)
1. 90 percent of survey respondents in the United States reported that they would be prompted to boycott a brand for irresponsible business actions.
Customers who return to your goods are the lifeblood of your company, and today’s customers are the ones that place a high value on social responsibility and security issues. Consumers who responded to a Statista poll indicated they would do everything to boycott a brand if they discovered that the company was irresponsible about any activities involving the goods they purchased. In the United States, 90 percent of poll respondents said that they would be motivated to boycott a brand if the company engaged in reckless business practices.
(Statista)
2. 56 percent of US consumers stop buying from companies they believe are unethical.
Consumers don’t give a second thought to whether or not they can discover alternatives; instead, they just cease purchasing any product that they believe is immoral. According to the source, 56 percent of US customers no longer do business with businesses that they feel are immoral in their practices.
(Mintel)
3. 60% were reporting making more environmentally friendly, sustainable, or ethical purchases since the start of the pandemic.
The pandemic has heightened people’s awareness of the need of good health. Following the epidemic, many individuals have been more concerned about their health. People are also considering how they can make the world a better and more sustainable environment for their children and grandchildren, as well as for themselves. Drinking immunity beverages and eating more nutritious foods has risen to the top of the list of popular trends in the wake of the covid-19 epidemic. According to the BBC, 60 percent of those polled said they had made more environmentally friendly, sustainable, or ethical purchases since the beginning of the pandemic began.
(BBC)
4. 68 percent of Americans are confused about what certain ethical icons mean, with nearly half (46 percent) confused about the meaning of certain ethical terms.
Even though they are a rising segment of the consumer population, ethical consumers are still a minority when compared to other kinds of customers. Many individuals may not even be aware of the aim and motivation of ethical consumers, much alone why they are advocating for a certain problem across the globe. It is said that over half of Americans (46 percent) are puzzled about the meaning of some ethical symbols, and nearly two-thirds (68 percent) are confused about the meaning of certain ethical phrases, according to a recent survey.
(Mintel)
5. In 2020, renewable energy sources accounted for about 12% of total U.S. energy consumption and about 20% of electricity generation.
The growing number of ethical consumers is not only concentrating on ethical dining, but they are also demonstrating their ethical behavior in other areas such as clothes and energy usage. As the need for environmentally acceptable energy sources grows, ethical consumers are doing their part to help by using renewable energy sources. According to the United States Energy Information Administration, renewable energy sources will account for about 12 percent of total energy consumption in the United States and approximately 20 percent of power production in 2020.
(Energy Information Administration)
6. 15% of consumer-used clothing is recycled, whereas more than 75% of pre-use clothing is recycled by the manufacturers.
The promotion, or should we say the altering of fashion trends, is being carried out by ethical customers, and manufacturers are doing all they can to assist the cause carried out by ethical consumers by effectively recycling clothing. in accordance with the source
(The Balance SMB)
7. Female consumers are more likely to purchase ethical goods than male consumers.
When it comes to being ethical shoppers, ladies have the upper hand over males. In accordance with the source, female customers are more likely than male consumers to buy ethically sourced products.
(Econ Berkeley )
8. 74 percent Americans say they prioritize locally produced food, 69 percent sustainable packaging, 69 percent animal welfare, 67 percent non-GMO.
In the food markets, the ethical group of customers is prioritizing or establishing objectives for themselves. According to the source, 74% of Americans say they value locally produced food, 69% say they prioritize sustainable packaging, 69% say they prioritize animal welfare, and 67% say they prioritize non-GMO.
Good news for local manufacturers is that ethical customers are willing to pay more money for goods that are grown or raised in their own communities.
(Sustainable Brand)
9. Single-family green residential construction has grown dramatically, from 2 percent in 2005 to 23 percent in 2013. Green home building or retrofitting is clearly booming.
Global warming must be stopped, and more plants and trees must be planted on the planet earth in order to provide adequate oxygen to the ecosystem. People are taking steps to combat global warming, beginning at home with the construction of green houses. In recent years, according to the United States Green Building Council, single-family green residential development has increased significantly, from 2% of total construction in 2005 to 23% in 2013. Green house construction and retrofitting are definitely on the rise.
(US Green Building Council)
10. Older generation is more engaged in ethical consumption.
The elder generations’ ethical conduct and consumption are motivated by their knowledge of a wide range of topics, their preference for quality and values, and their belief that they should play a part in the improvement of society.
(Econ Berkeley)
11. 69 percent U.S. travelers identified sustainable travel as important to them.
According to ethical consumer behavior, if we really want to preserve our world, we must reduce the amount of noxious gases generated by our cars by increasing the number of trees we plant. If we want to make positive changes in our lives, from our diet to our clothes, we must also make positive changes in our commute.
And it is being taken seriously by the general public. According to the source, 69 percent of tourists in the United States consider sustainable travel to be very essential.
(Travel Agent Central)
12. The concentration of ethical products is more in the beauty and personal care departments.
According to the Berkeley University study Observation of Modern Ethical Consumers, ethical goods are available in the food, clothing, and other industries, but the emphasis and concentration is on beauty and personal care products and services.
(Econ Berkeley)
13. 72% said they were buying goods and services from companies with beliefs similar to theirs.
Companies and brands that ethical customers trust are those that support and believe in the same social and economic causes as those in which ethical consumers are most engaged, such as environmental preservation and the abolition of child labor. According to a survey conducted by the source, 72 percent of respondents stated that they purchased goods and services from companies that shared their beliefs, and that they would not hesitate for a second to boycott brands that engage in unethical business practices in the areas of production, supply, and financial transactions.
(You Matter World)
14. 70 percent of U.S. consumers aged 18 to 29 stated that they preferred natural and organic skin care products.
There is nothing better than preserving the environment and utilizing only natural goods, according to ethical customers. When it comes to pampering and caring for the skin and body, there is nothing better than using natural plants and herbs. Natural skin care products are becoming more popular among not just the elderly, but also the younger generation, including adolescents and adults, who are becoming more aware of the benefits of natural skin care products. In addition to benefiting skin care product manufacturers, the organic cultivation of plants will also contribute to the reduction of global warming emissions. 70 percent of U.S. customers between the ages of 18 and 29 who responded to a Statista survey said that they favored natural and organic skin care products.
(Statista)
15. Ethical statistical practice does not include, promote, or tolerate any type of professional or scientific misconduct.
Science, research, and business are just a few of the professions in which ethical societies favor ethics above others. Scientists, researchers, and businesspeople are just a few examples. They carry out all of their work in an ethical manner and accept work that has been carried out in an ethical manner. American Statistical Association states that ethical statistical practice does not contain, encourage, or accept any form of professional or scientific misconduct. According to the ASA, This implies that their material does not cause anyone’s emotions to be harmed, that they do not harass, that they do not encourage gender inequity, and that they do not discriminate.
(American Statistical Association)
16. One out of every three dollars under professional management in the United States $17.1 trillion was managed according to sustainable investing strategies.
Investments are being made to ensure the long-term viability of the planet, the preservation of its natural resources, and the preservation of its natural beauty. The Sustainable Investment Foundation of the United States is working towards this goal, and according to a recent report on sustainable investing, one out of every three dollars under professional management in the United States ($17.1 trillion) is managed according to sustainable investing strategies.
(US Sustainable Investment Foundation)
17. 70 percent of US residents had made a charitable donation in the past 12 months in 2018.
People were asked about their actions for social betterment and ethical spending by Statista in 2018, and 70 percent of US residents stated that they had made a charitable donation, 55 percent stated that they had purchased a product with a social benefit, and 52 percent stated that they had purchased products that were standing up for a cause that they were passionate about in the previous 12 months.
(Statista)
18. 70 percent rarely or never talk about the environmental impact of their food choices with friends or family.
We must educate ourselves on the consequences of our acts and the consequences of our inaction. We have a larger duty towards the environment in which we live, as well as towards all other things on the planet. Unfortunately, we do not make an effort to gather sufficient knowledge about our everyday behaviors in order to make a difference. After conducting a study, the source found that 70 percent of Americans seldom or never discuss the environmental effect of their food choices with friends or family. People said that they had never been urged to consume plant-based foods or to support ethical manufacturing practices. These individuals accounted for two-thirds of all responses. Knowledge regarding good and bad goods should be communicated to the general public, since most people are unaware that their purchases are contributing to the world’s unsustainable development.
In this case, the good news is that people are ready to eat healthfully and reduce their use of animal products, and they are also growing more concerned about their own health and the environment.
(Eco Watch)
19. When we choose to buy Fair Trade Coffee, we are casting a vote for the ethical treatments of the laborers around the world who are responsible for our daily coffee fix.
Coffee serves as a wake-up call for almost all of the people in the United States, as well as a source of energy throughout the day. Coffee is consumed in large quantities by residents of the United States. Because of the massive production and consumption of coffee, there is a significant number of youngsters working as labor on various cocoa fields all over the globe, particularly in developing countries. Fair trade, on the other hand, is an organization that produces coffee without the use of child labor and pays a fair wage to its workers in exchange for their efforts. When you purchase coffee from a fair trade source, you are joining the ranks of ethical consumers who refuse to purchase coffee from producers that do not adhere to ethical business standards.
(The Good Trade)
20. According to Wine Intelligence’s report looking at opportunities for sustainable, organic and lower alcohol wines (SOLA).
The manufacture of alcoholic beverages has a negative effect on the environment as well as on the workers who work in alcohol manufacturing facilities. The alcohol manufacturing process may result in increased carbon dioxide emissions, nitrogen and phosphate runoff, and excessive water consumption. Additionally, the workers employed in the process may face difficult working conditions. In terms of overall damage, alcohol is the most detrimental since it negatively impacts your health the most.
As a result, younger generations are searching for non-alcoholic alternatives to alcoholic beverages. According to the source, younger customers are the key to the success of “alternative” wines because of their ethical views, as well as their time, education, and willingness to spend money in their own well-being. When compared to older wine consumers, young people were more inclined to purchase alternative wines such as organic, Fairtrade, or other sustainable wines. However, young people were also more ready to pay a higher price for organic wine in both the off- and on-trade.
As the popularity of organic wine has grown, so has the number of customers searching for Fair Trade wines, which has risen by 10% in recent years. Organic and environmentally friendly ine and other alcoholic beverages are becoming more popular.
(The Drink Business)
Final Thoughts
Being an ethical consumer is a state of mind that finds goodness in all aspects of life and tries their level best to have good for themselves and as well as for other human beings, animals, laborers and for their planet earth.
An ethical consumer applies certain additional criteria when making a purchase. They look for a fair-trade product or one produced ethically. They consider their individual intake to be either beneficial or detrimental to the globe and its inhabitants. An ethical consumer would not purchase a product made with child labor.
Ethical consumers not only focus on food but also they find ethical correctness in clothing, insurance, energy, soft drink, tea and finance. The companies are claiming to be ethical to get their products sold to these consumers but it’s a bit hard. Companies that act responsibly towards society and set goals to meet the needs and desires of various groups of consumers are those that ethical consumers are drawn to.
Those who practice ethical consumption think that the time and money we invest now will contribute to a better future for both ourselves and the world. By our purchasing habits, we are endorsing certain ideas that are either detrimental to other living beings or damaging to the environment in general.
When we buy from firms that promote social and environmental concerns, however, we are helping to make a difference in the world.
For example, an ethical consumer might refrain from purchasing goods that do not include palm oil because they believe that by doing so, they are not contributing to the conservation of orangutans and the Indonesian rainforest, where these creatures reside, as they should.
Similarly, you are termed an ethical consumer if you behave and act in the same manner toward the environment and other living things. According to source ethical food and drink – which includes Fairtrade, organic, vegetarian and plant-based alternatives, as well as free-range eggs – continues to be the market’s biggest sector by a significant margin.
FAQs
Q1: Why ethical consumers not use products prepared by child labor?
Ethical consumers are opposed to child labor; they believe that children should be encouraged to pursue their education and aspirations rather than being forced to work. The provision of education to children is a fundamental right that the government is responsible for fulfilling. Although some businesses still promote child labor, ethical consumers are opposed to this practice and boycott businesses that they believe are engaged in the promotion of child labor on a systematic basis.
Q2: Are ethical consumers more proud of themselves?
Customers who adhere to ethical standards are more satisfied with their choices because they have a vision of the world being a better place. As a result, they are happier and more confident in themselves because they know that they are at least contributing to the betterment of the world.
Source
The Australian Ethical Consumer Reports
Ethical Consumer Market Report 2020
Energy Information Administration
Statista
American Statistical Association
US Sustainable Investment Foundation
