How Customer Preferences Are Shifting Toward Green Businesses
Photo: Mark Dalton/Pexels
This article was written by Emily Chambliss.
Many consumers today are making it clear: they want to support businesses that care about the planet. Whether it's choosing sustainably sourced coffee, opting for electric vehicles, or favoring brands with eco-friendly packaging, people are increasingly prioritizing environmental responsibility in their purchasing decisions.
One of the biggest reasons for this shift is growing environmental awareness. Climate change, pollution, and resource depletion are no longer distant concerns, but issues affecting daily life. A 2020 study by IBM and the National Retail Federation found that nearly 70% of consumers in the U.S. and Canada prefer to buy from brands that are environmentally responsible.
Younger consumers are also using social media to hold companies accountable. Greenwashing—when companies falsely claim to be sustainable—gets called out quickly. First Insight reports that 62% of Gen Z consumers prioritize sustainability when making purchases, and 73% are willing to pay more for these products. Businesses that don’t back up their sustainability claims with real action risk losing customer trust.
How Businesses Are Responding
With consumer preferences shifting, many businesses are making sustainability a key part of their strategy. Some companies have been leaders in this space for years, while others are now realizing that they must adapt to stay competitive.
Here are a few major ways companies are going green:
1. Sustainable Packaging
Plastic waste is a major environmental issue, and many consumers try to avoid it. In response, brands are moving toward biodegradable, compostable, and reusable packaging. Unilever has committed to making 100% of its plastic packaging recyclable or compostable by 2025, and Nestlé is investing in paper-based alternatives to traditional plastic wrappers. Find certified packaging companies in the Green Business Network directory.
2. Carbon Neutrality and Renewable Energy
Consumers are paying more attention to corporate carbon footprints, pushing businesses to cut emissions. Some major corporations like Coca Cola Enterprises and Apple have set ambitious climate goals to meet this demand.
3. Circular Economy and Waste Reduction
More businesses are moving away from the traditional “take, make, waste” model in favor of circular economy strategies. This means designing products for longevity, repairability, and recyclability. GBN alumni member Patagonia has a resale program, “Worn Wear,” that encourages customers to trade in used gear instead of throwing it away.
Why This Shift Matters for Businesses
Going green isn’t just about responding to consumer demand. It’s also a smart business decision. Companies that invest in sustainability are seeing financial benefits like customer loyalty, competitive advantage, and cost saving.
A 2021 Harvard Business Review article noted that companies with strong environmental, social, and governance (ESG) strategies often outperform their competitors financially, attracting more investment and customer support.
This shift toward sustainability is not a passing trend, but a lasting transformation in how businesses and consumers interact. For many consumers, every purchase is a statement. As environmental issues become more urgent, companies that embrace green practices will be better positioned for long-term success. If that sounds like your company or a business you love, join the Green Business Network today!