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 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

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 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 Influence of values on buying decisions: Environmental values Strongly agree that current prod. & cons. models are a threat for the environment; Social values Consumers agree to buy bio-based products on peer ´ s suggestions; Economic values Economic values reflected the importance of price and comparison with fossil-based; Knowledge values Consumers would appreciate more information on the production of bio-based products and on their impact

Awareness vs. Willingness to buy Professional Procurers Consumers Personal care products Personal care Children's products products Surface coverings including toys Surface coverings Cleaning products Electronic equipment Cleaning products Electronic equipment Paints and varnishes Construction and Paints and varnishes building material Construction and Furniture building material Textiles and footwear Furniture Textiles and footwear Gardening products Paper products Gardening products Lubricants Paper products Lubricants Willingness to buy bio-based products Awareness of bio-based products Willingness to buy bio-based products Awareness of bio-based products

Relevance of sustainability pillars Consumers Professionals Total Professional Procurers environmental environmental environmental issues: 90% issues: 89% aspects 86% social social issues; economic economic economic issues: issues; 66% social 62% issues: 64% issues 54% 69% issues; 64% N Consumers: 465, N Professionals Total: 235, N Professional Procurers: 74

Preferences regarding environmental aspects Percentage of bio-based content Compostability Percentage of recycled content Biodegradability Type and origin of raw material Recyclability GHG emissions Lower GHG emissions than Environmental life-cycle impacts fossil-based alternatives No pollution of water, soil and Appropriate waste management air beyond thresholds Lower toxicity than fossil-based No deforestation or use of alternatives peatland Toxicity No impact to bio-diversity Use of chemicals No use of GMOs Use of water Resource efficiency Professional procurers Professionals Total Consumers N Consumers: 445, N Professionals Total: 235, N Professional Procurers: 74

% bio-based content & % reduction GHG over fossil-based Consumers All professionals GHG Misleading Misleading GHG MINIMUM % Bio-based reduction bio-based 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% N Consumers: 423, N Professionals:235, Procurers: 74

Preferences regarding social aspects Influence of the product on people’s health Following social aspects are Contribution to the economic Respect of human rights in the perceived as most wellbeing of local communities production of the material and important: by the producer the product No child labour No forced labour Implementation of an occupational health and safety No child labour Health and plan for the production of the product safety of workers and users The working conditions and the Food security payment of the employees Not tested on animals meet at least minimum standards Professional Procurers Professionals Total Consumers

Preferences regarding economic and circularity aspects Important to promote: 78% 76% Use of renewable 74% materials and prevent 72% 70% resource depletion; 68% 66% Responsible waste 64% management; 62% 60% Efficient use of material 58% Fair business practices of the company Fair land use rights practices in the production of feedstock resources. Professional Procurers Professionals Total Consumers N Consumers: 411, N Professionals Total: 235, N Professional Procurers: 74

Other characteristics influencing a decision to purchase a bio-based product Functionality/perfor Functionality/perf mance of the product ormance of the product 100% Better performance 80% 100% Better Life cycle cost than alternative 80% 60% performance than fossil-based products Life cycle cost alternative fossil- 60% 40% based products 40% 20% 20% 0% 0% Energy consumption Price Energy Price consumption Specific brand name Specific brand for bio-based Brand name name for bio- Brand name products based products Consumers Professional Procurers Professionals Total 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

Field Experiment among consumers 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

Experiment Implementation Holt and Laury WTP elicitation mechanism: ✓ 360 consumers participated in the experiment ✓ 120 observations collected for each product ✓ For a total of 1080 observations

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). 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.

Lessons learned 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.

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.

Acknowledgements Contact Luana Ladu Thank you for your attention! luana.ladu@tu-berlin.de Enrica Imbert enrica.imbert@unitelmasapienz a.it www.star-probio.eu