Methods 3-round Delphi survey (lime survey) Focus group and - - PowerPoint PPT Presentation
Methods 3-round Delphi survey (lime survey) Focus group and - - PowerPoint PPT Presentation
A CCEPTANCE FACTORS FOR CONSUMERS AND FOR BUSINESSES STAR-ProBio Final Meeting Luana Ladu (TUB) WP 5 Market Assessment Goals WP5 in STAR-ProBio Identify sustainability preferences of different consumer groups regarding environmental, social
WP 5 Market Assessment Goals
Identify sustainability preferences of different consumer groups regarding environmental, social and economic sustainability aspects Assess the propensity to buy bio-based products and the importance of product characteristics (e.g. performance and quality) in influencing buying decisions
Methods
3-round Delphi survey (lime survey) Focus group and workshops for validating intermediate results Field Experiment for consumers
WP5 in STAR-ProBio
Delphi Survey: generalities
Target groups: professionals (special emphasis to procurers) and consumers (early adopters) Five countries + additional experts EU level Five languages (English, German, Italian, Spanish, French) Duration: of each round 11 weeks (1st round): 1,088 responses: 744 consumers and 344 professionals (85 procurers); (2nd round): 180 responses: 80 consumers; 100 professionals (25 procurers); (3rd round): 78 responses (only professionals).
Propensity to buy bio-based products and influence of values
Influence of values on buying decisions: Environmental values Social values Economic values Knowledge values
Strongly agree that current prod. & cons. models are a threat for the environment; Consumers agree to buy bio-based products on peer´s suggestions; Economic values reflected the importance of price and comparison with fossil-based; Consumers would appreciate more information on the production of bio-based products and on their impact
75% of consumers are inclined or even very inclined to buy bio-based products 62% will normally prefer the bio-based over the fossil-based version
Awareness vs. Willingness to buy Consumers Professional Procurers
Personal care products Cleaning products Paints and varnishes Furniture Gardening products Lubricants Paper products Textiles and footwear Construction and building material Electronic equipment Surface coverings
Willingness to buy bio-based products Awareness of bio-based products
Personal care products Children's products including toys Cleaning products Paints and varnishes Furniture Gardening products Lubricants Paper products Textiles and footwear Construction and building material Electronic equipment Surface coverings
Willingness to buy bio-based products Awareness of bio-based products
N Consumers: 465, N Professionals Total: 235, N Professional Procurers: 74 environmental aspects 86% social issues; 64% economic issues 54% environmental issues: 90% social issues; 66% economic issues: 64% environmental issues: 89% social issues; 62% economic issues: 69%
Consumers Professionals Total Professional Procurers
Relevance of sustainability pillars
N Consumers: 445, N Professionals Total: 235, N Professional Procurers: 74
Preferences regarding environmental aspects
Percentage of bio-based content Percentage of recycled content Type and origin of raw material GHG emissions Lower GHG emissions than fossil-based alternatives No pollution of water, soil and air beyond thresholds No deforestation or use of peatland No impact to bio-diversity No use of GMOs Resource efficiency Use of water Use of chemicals Toxicity Lower toxicity than fossil-based alternatives Appropriate waste management Environmental life-cycle impacts Recyclability Biodegradability Compostability Professional procurers Professionals Total Consumers
N Consumers: 423, N Professionals:235, Procurers: 74
Consumers All professionals
MINIMUM % Bio-based GHG reduction Misleading bio-based Misleading GHG reduction 0 to 10% 0% 6% 16% 11% 10 to 20% 4% 12% 5% 0% 20 to 30% 2% 8% 16% 33% 30 to 40% 6% 11% 6% 11% 40 to 50% 6% 37% 31% 28% 50 to 60% 13% 6% 10% 11% 60 to 70% 12% 6% 0% 0% 70% or more 57% 14% 16% 6%
% bio-based content & % reduction GHG over fossil-based
Influence of the product on people’s health Respect of human rights in the production of the material and the product No child labour Not tested on animals The working conditions and the payment of the employees meet at least minimum standards Implementation of an
- ccupational health and safety
plan for the production of the product Contribution to the economic wellbeing of local communities by the producer Professional Procurers Professionals Total Consumers
Following social aspects are perceived as most important: No child labour No forced labour Health and safety of workers and users Food security
Preferences regarding social aspects
N Consumers: 411, N Professionals Total: 235, N Professional Procurers: 74 58% 60% 62% 64% 66% 68% 70% 72% 74% 76% 78% Fair business practices of the company Fair land use rights practices in the production of feedstock Professional Procurers Professionals Total Consumers
Preferences regarding economic and circularity aspects
Important to promote: Use of renewable materials and prevent resource depletion; Responsible waste management; Efficient use of material resources.
Life cycle cost were not discussed in the consumer version due to the complexity of this item
N Consumers: 398, N Professionals Total: 235, N Professional Procurers: 74 0% 20% 40% 60% 80% 100%
Functionality/perfor mance of the product Better performance than alternative fossil-based products Price Brand name Specific brand name for bio-based products Energy consumption Life cycle cost
Consumers 0% 20% 40% 60% 80% 100%
Functionality/perf
- rmance of the
product Better performance than alternative fossil- based products Price Brand name Specific brand name for bio- based products Energy consumption Life cycle cost
Professional Procurers Professionals Total
Other characteristics influencing a decision to purchase a bio-based product
Location: multinational company (IKEA) Aim of the field experiment: eliciting consumers’ (WTP) to assess market potential (through Holt and Laury elicitation mechanism) Research questions:
▪ Are consumers willing to pay more for bio-based products than for fossil-based products? ▪ Do certifications/ labels on bio-based products affect the consumers' willingness to pay?
Experimental design:
Each consumer was presented with: ▪ A conventional (fossil-based) product ▪ A non-certified bio-based product ▪ A certified bio-based product
Field Experiment among consumers
✓ 360 consumers participated in the experiment ✓ 120 observations collected for each product ✓ For a total of 1080 observations Holt and Laury WTP elicitation mechanism:
Experiment Implementation
The importance of price The experiment revealed that the estimated aggregated demand curves for conventional products showed convexity, while the estimated aggregated demand curves for certified goods showed
- concavity. This means that it is
confirmed that the price of bio- based products significantly influences its market share.
Results
Presence of a green premium Results shows the presence of a “green premium” for both bio-based and certified bio-based
- products. In particular, the presence of a sustainability certification (label) favours a greater
consumers’ willingness to pay (WTP).
Being able to prove and communicate that sustainability criteria are met will be a key acceptance driver for bio-based products; Quality is a leading factor to make the transition to a bio-based economy; The presence of a sustainability certification (label) favours a greater consumers’ WTP; EOL is product specific and it should be clearly communicated to consumer how to dispose a product; The origin of raw materials and the manufacturing place, is highly relevant, and should be, if possible, specified on a packaging label; Policy makers could promote acceptance of bio-based products by: adopting legislations (e.g. bans, taxation and subsidies); by stimulating demand via public procurement; and properly communicating the benefits of bio-based products.
Lessons learned
Publications
- L. Ladu, S. Wurster, J. Clavell, S. van Iersel, S. Ugarte, M. Voogt, P. M. Falcone, E.
Imbert, V. E. Tartiu, P. Morone, M. Crêpy, D. Fedrigo, STAR-ProBio Deliverable D5.1, Acceptance factors among consumers and businesses for bio-based sustainability schemes, 2019. available at: http://www.star-probio.eu/wp- content/uploads/2017/04/STAR-ProBio_D5.1_final.pdf
- E. Imbert, P. M. Falcone, I. D´Adamo, P. Morone, L. Ladu, R. Quitzow, S.Wurster, S.
van Iersel, S. Ugarte, M. Voogt, M. Crepy, STAR-ProBio Deliverable 5.2, Results of the experiment / Case study, 2019. Available at: http://www.star-probio.eu/wp- content/uploads/2017/04/STAR-ProBio-Report-5.2_Final_1.0.pdf Ladu, L. and Wurster, S. Market Assessment, 2020, Chapter 5 in Green Chemistry Series No. 64 Transition Towards a Sustainable Biobased Economy Edited by Piergiuseppe Morone and James H. Clark. Published by the Royal Society of Chemistry, www.rsc.org.