Hard times mean no sustainability premium in North America

North American consumers are cutting back spend across most categories and finding it harder to justify paying a premium for eco-friendly brands, although younger consumers remain more willing to do so.

That’s according to analysis by WARC and GWI that identifies the pivotal factors shaping consumer purchase decisions across various brands and categories. 

Context 

Inflation and the cost of living are issues affecting consumers everywhere, while Gen Z, faced with a world of worries, is also experiencing a mental health crisis. WARC’s 2023 Consumer Trends report identifies those aspects of emerging consumer behavior that are more pronounced in different regions.

Takeaways 

• The sustainability-price gap is particularly wide in North America, with price being three times more important than sustainability in consumers’ purchase decisions. 
• Approximately a quarter of North Americans have made a second-hand purchase – either in person (28%) or online (24%), with value being the main driver.
• Almost half (49%) think personalized recommendations are extremely helpful, but a similar proportion (47%) find ads targeted towards them to be intrusive.