Shoppers are willing to choose and pay more for FSC products when benefits for the environment are detailed in the labelling, a new study has indicated.
The independent market study in Japan found that shoppers for Indonesian-sourced wooden desks were willing to pay around 5-20 per cent more for products that claimed carbon and biodiversity benefits alongside the FSC label, and that these claims were deciding factors in choosing a certified product over an uncertified one.
Since 2018, certified product labels have been able to detail verified impact claims via FSC’s Ecosystem Services Procedure (FSC-ES). Known as Verified Impact, the voluntary procedure enables forest managers to report their positive impacts on ecosystem services related to biodiversity, carbon, water, soil, recreation, air quality and cultural values. Once verified by an FSC-accredited body, these claims can be included on product labels in addition to the FSC logo.
The Japanese market is crowded with eco-labels, and awareness of their significance for real-world impact is low. When FSC-ES was introduced in 2018, only 18 per cent of Japanese consumers recognised the FSC label; this has now risen to 33 per cent. Over 70 per cent of consumers are still unfamiliar with the concept of ‘forest certification’, and only 10 per cent of Japan’s forests are certified, supplying over a third of local wood consumption. The other two-thirds is imported, including from Indonesia, which counts Japan as a top plywood export destination and a major market for wooden furniture.
The recent market study fills a critical gap in demonstrating the impact of label claims on shoppers’ willingness to pay a premium for certified timber products, in a discrete choice experiment (DCE). It also used a best-worst scaling (BWS) method to determine which sustainability attributes swayed purchasing decisions for Japanese consumers when choosing a wooden desk from Indonesia.
Results showed that the most relevant considerations for all shoppers were comfort, price and design, with sustainability appealing to a niche segment who were willing to pay 4.9 per cent to 21.3 per cent more for products with impact claims – mainly older, higher-income women and people working in timber-related industries. Carbon sequestration and biodiversity conservation were the sustainability attributes with the strongest sway for all shoppers.
The researchers concluded that making tangible and credible claims about the environmental benefits of products on labels, beyond just labelling them as “certified”, helped shoppers cut through the noise of a crowded market and understand the impact of their purchase. It also swayed buyers’ decisions from uncertified to certified products and significantly increased how much they were willing to pay.
The findings suggest that clear communication about the positive environmental impacts of certified products can help them succeed in the market, supporting producers engaged in sustainable forest management. Ultimately, the researchers note, by supporting sustainable production, better labelling can help reduce deforestation and conserve vital ecosystem services for all.
