Introduction
Environmental concerns are increasingly shaping how consumers shop, and businesses are responding in turn. This article will look into this “green consumer” trend, how businesses are adapting, and where challenges remain.
Is growing environmental awareness influencing customer preferences?
Growing concerns about climate change, pollution, biodiversity loss, and resource depletion are changing the way people consume and shop [1, 2, 3]. Consumers are paying more attention to the environmental impact, recyclability, energy efficiency, and ethical sourcing of the products they buy, from food and clothing to household goods and electronics [4, 5]. According to a 2024 survey of more than 20,000 consumers from across 31 countries, more than 80% of surveyed consumers said that they were willing to pay more for sustainable produced or sourced goods. In the EU this number is roughly 60% [15, 16]. This trend can be described as “green consumerism.” A green consumer is someone who considers the environmental consequences of a product before making a purchase decision [1, 6]. Nevertheless, a study by Bain & Company has revealed that because of concern about the cost of living, geopolitics, and the many global crises, concern for sustainability has lowered in the past few years, dropping from 90% in 2023 to 86% in 2024 and 79% in 2025 [20].
It is also important to note that the behaviour of green consumers can be shaped by different factors beyond environmental concerns alone. Purchase decisions can also be influenced by personal values, prices, product quality, eco-labels, social influence, trust in sustainability claims or the belief that individual choices can make a difference. Demographic factors can also play a role: younger consumers (e.g., millennials and Gen Z) have been identified as more sustainability-driven for categories like fashion and packaged goods in some studies, while evidence on gender and education is more mixed across studies [1, 3, 7]. However, over the past three years, baby boomers have added more new sustainable habits than Gen Z, the group often associated with these issues, because of their relative wealth, life stage, and flexibility to make meaningful changes, such as installing solar panels at home [20].
Consumers are also increasingly exposed to information about the environmental impact of products through (social) media, advertising, and digital platforms [6, 7]. This greater visibility can influence consumers to incorporate sustainability considerations in their decisions [6].
How is this shift changing business practices, product design, and management?
This shift in consumer attitudes is creating new pressure on businesses. Businesses are judged on their environmental performance and not only on price and quality [5, 8]. Environmental awareness is influencing practices, product design, marketing, and long-term strategies [5].
Concretely, one response from businesses has been the (re)design of products and packaging. Businesses start using recycled materials, reduce packaging, and design products to be recyclable or reusable [5, 8]. They also made changes in their supply chains and production processes, for example, by sourcing raw materials more responsibly, improving resource efficiency, and investing in cleaner production methods [3, 7]. At a strategic level, businesses started to integrate sustainability into broader business objectives [5].
Governments and legislation have also introduced policies or incentives to encourage sustainable production and consumption, creating an additional pressure for businesses to act [5, 9]. In 2024, the EU adopted the “EU Empowering Consumers for the Green Transition Directive,” which strengthens consumer protection against greenwashing, misleading sustainability claims and early obsolescence, while improving information on products’ durability, reparability and legal guarantees. This directive must be transposed by Member States by 27 March 2026 and will apply from 27 September 2026 [18]. Moreover, the EU Right to Repair Directive promotes the repair and reuse of consumer goods by requiring manufacturers to repair certain products at a reasonable price and within a reasonable timeframe, while extending the legal guarantee by one year when consumers choose repair over replacement [19]. The directive, adopted in February 2024, will enter into application in September 2026.
What are the positive impacts of public pressure for greener business?
As mentioned above, businesses have been transitioning towards more resource-efficient and circular business models. They are exploring how to reduce environmental impact, extend product lifespans, and recover materials through recycling, reuse, or remanufacturing. For example, Patagonia Inc. is an apparel company that aims to limit the ecological impacts of its products by making them durable or using recycling materials. Canussa produces bags and accessories, and aims to reduce waste and source ethical and sustainable materials for its designs. Better Packaging Co. creates packaging for shipping, apparel, and furniture from certified ocean-bound plastic pollution [3,14].
Additionally, transparency and accountability increased since businesses are using certifications, eco-labels, or other sustainability disclosure schemes to communicate on their environmental performance. Among the many existing labels, there is:
- The EU Ecolabel, a voluntary scheme designed to encourage businesses to market products that respect the environment and that helps European consumers identify such products;
- The Forest Stewardship Council, a certification that proves that forest products come from sustainably-managed forests;
- The B Corp, a voluntary third-party certification awarded by B Lab for for-profit businesses that meet high sustainability criteria; and
- The Oeko-Tex Standard 100, a testing and certification system for textiles [5, 10, 13].
What are the challenges involved in this process?
Despite the positive developments, a transition to fully green consumption is not straightforward.
There remains a gap between intent and behaviour. Consumers express support for sustainable products but do not always purchase them due to higher prices, inconvenience, lack of information, and doubts about environmental claims [1]. Price remains particularly important. While some consumers are willing to pay more for sustainable products, many continue to prioritise affordability, especially when sustainable alternatives are perceived as expensive [1, 5]. According to PwC’s Voice of the Consumer Survey, while 80% of respondents are concerned about climate change, only 44% are willing to pay more for food that supports the environment, such as by improving soil quality and enhancing biodiversity [17]. However, 43% say they could be persuaded to change their minds [17].
Additionally, growing consumer demand for sustainable products can create incentives for some businesses to greenwash (i.e., portray products or companies as environmentally-friendly without meaningful environmental action behind the claims). Certain companies have been fined or condemned for having made greenwashing claims. For example, the Italian Competition Authority fined the ultra-fast fashion company Shein €1 million for misleading environmental messaging, and a German regional court prohibited Apple from calling its Apple Watch “carbon neutral” [8, 9, 11, 12].
While some businesses are greenwashing by exaggerating their environmental performance, others engage in greenhushing by deliberately undercommunicating their sustainability efforts, which may lead green consumers to overlook genuinely sustainable brands.
Conclusion
Environmental awareness is reshaping consumer expectations, forcing businesses to adapt their practices. However, many customers remain sensitive to price and other factors beyond sustainability. Greenwashing and greenhushing show that consumer awareness alone will not deliver truly sustainable outcomes: credible information and stronger regulatory frameworks matter just as much.
