With constant concern about the environment, it may seem quaint to fret over the qualities of a giveaway product. But amid that anxiety is an essential truth: the demand for truly sustainable consumer products has never been stronger. Call it the victory of hope over despair.

“Consumer interest in ethically sourced and environmentally responsible products has continued to increase,” says Sarah White, cofounder of Fairware Promotional Products (asi/191452), which specializes in ethical sourcing and sustainable products. “Most dramatically in the last five years.”

Over a decade ago, a new wave of environmentalism swept the globe and captured media attention. The same interests rose in the promotional product industry. Mark Trotzuk, CEO of supplier Boardroom Eco Apparel (asi/40705), defines the peak of eco-friendly as roughly 2005-2010, when there was somewhat of a novelty to the idea.

But the eco category began to receive added scrutiny both inside the industry and out in the greater consumer landscape. Countless brands eager to get in on the action made exaggerated and misleading claims about the environmental impact of their products. “To talk knowledgeably about it,” says Trotzuk, “you have to get metrics and proof. That’s why promotional product sales went down for a while. It’s too complicated.”

But even as the interest in eco promo products ebbed and flowed, a funny thing happened: consumer interest in sustainable products continued to grow. In 2015, Nielsen found that two-thirds of global consumers said they were willing to pay more for sustainable brands – up from 55% the previous year. Another study that year reported that 84% of consumers globally seek out responsible products whenever possible.

The same desire is on display in the promotional product industry. Nearly 65% of end-buyers surveyed by ASI say they prefer to purchase promos that are environmentally friendly. A mere 4.5% express no preference for products marketed as eco-friendly or similarly.

End-buyers aren’t purchasing sustainable products just to assuage their conscience. They’re tying those products into an overarching message of corporate social responsibility (CSR) that is winning the affection and trust of consumers. In a 2015 study by Cone Communications and Ebiquity, 88% of consumers said they would be more loyal to companies who support social or environmental issues, and 90% would switch brands if they’re associated with a good cause (and price and quality were similar.)

“The research has revealed an increasingly sophisticated consumer,” said Jennifer Ciuffo Clark, research director at Ebiquity, when the study was released. “Global consumers have high demands for companies to address social and environmental issues, but they now also understand they have an obligation to make change as well. It’s critical for companies to understand the nuanced drivers, barriers and opportunities that resonate among discerning global audiences.”

Boiled down to a simple truth: doing good never gets old. And eco products embody good.

Consumers Care
White says the market has plenty of room to grow, but it demands participants be authoritative in its language and practices. “The trend is fueled by increasing numbers of consumers who care, and can readily access information about brands,” she says. White finds her clients are asking more (and better informed) questions, and are wise to anyone peddling duplicitous claims. “It’s still a challenge for consumers and buyers to sift through the greenwash,” White says, referring to the misrepresenting of a product’s environmental attributes. But many customers who may have been burned by the greenwash controversy have turned any residual skepticism into informed curiosity.

Matt Hollis thinks so too. The president of Elytus, a Columbus, OH-based firm that helps companies manage their waste stream, sees telling signs of a greater embrace of sustainable practices. “I do believe consumers care,” he says, “and what confirms it is the growing number of businesses who are doing front-of-house recycling, which is all customer and consumer driven.”

Consumers care about sustainable products, but to paraphrase George Orwell’s Animal Farm, there is one group of consumers more equal than others: millennials. In Nielsen’s study, three-quarters of millennials express a willingness to spend more for sustainable products (compared to 66% overall). ASI’s annual Ad Impressions survey found that 58% of end-users ages 18-35 have a more favorable opinion of an advertiser that uses eco promotional products – more than any other age bracket. (Half of women think more highly of a company as well, compared to 40% of men.)

“We have a new generation of buyers,” says Kryia Stevens, brand manager for apparel supplier econscious (asi/51656). “These buyers are tuned into a multitude of information and identify with brands that embody socially and environmentally conscious values.”

Trotzuk traces much of the millennials’ pro-environment conviction to former Vice-President Al Gore’s 2006 documentary An Inconvenient Truth, which he calls a “wake up call for young people.” He sees the release of that film’s sequel as having the potential to convince a new generation of the merits of sustainability.

For millennials, says Michelle Sheldon, president of distributor Eco Promotional Products (asi/185797), “issues such as human rights and eco-friendly are part of their culture. There is more demand for not only what the product is made of, but also how it was made.” And with added buying power as they enter into the upper echelons of the workforce, millennials are poised to stoke the growth of the eco category.

That will expand what is already a widely varied market footprint. Eco products aren’t just for farmers markets and crunchy communes. Distributors are finding success with health and beauty companies, nonprofits, government agencies, even Fortune 500 companies who pride themselves on their corporate social responsibility. “Strong CSR is a powerful differentiator in the marketplace,” says Stevens. “And a vital ingredient of any robust CSR policy is environmental stewardship. Whether it’s offering your clients organic cotton options or switching to LEDs in your shop, it all makes a difference.”

Of course, that doesn’t mean you should ignore the obvious. Take the organic market, which reached $43.3 billion in 2015 (compared $3.6 billion in 1997) and grew 10.8% compared to the previous year. And yes, there were 8,268 farmers markets in 2014, up 180% since 2006.

Beyond Price
Just because anyone can be a potential buyer of eco products doesn’t mean that everyone will be. Price-driven clients who simply want the most product for their dollar won’t be receptive to the message. “When it’s only about lowest cost for highest volume,” Hollis says, “it’s hard to squeeze any other criteria into that.”

Price has historically been an issue with eco products. The divide is still there, but it has lessened. Trotzuk says the price difference now is no more than 5% or 10%, and “in many cases there’s no difference in price, depending on the type of product,” he adds.

And ultimately, if you find the right clients and are prepared to offer thorough education and proof, the price barrier should crumble. Buyers are more aware of the demands of creating a truly sustainable product, especially the onerous task of ensuring the environmental soundness of the long supply chain behind every garment. Consequently, Trotzuk says, they’ll pay the difference because they recognize the effort and feel more secure in the quality: “It proves to their customers that they care and have a supply chain set up to mitigate environmental damage as much as possible.”

So how to find these buyers? There’s at least one simple way: look for companies that are visible supporters of sound environmental practices. Companies readily post their CSR missions on their websites and charitable actions on their social media accounts; the biggest corporations will even publish their own reports detailing their actions to be good stewards. Companies who publicize those aims, says Hollis, have to keep those promises. “If you made that move, there’s a good chance you made some sort of announcement,” says Hollis. “You can’t just undo that. The consumer would criminalize you!”

However, Trotzuk warns that if “green” is your primary sales pitch, you’re doing it wrong. “You don’t sell the eco part of the product,” he says. “That should be inherent within the product and the practices you follow.”

It means that the product – in particular the quality and the fit – has to be prized far above any environmental association. Hamilton Perkins, creator of the Hamilton Perkins Collection line of designer recycled plastic and vinyl travel bags, warns against over-reliance on anything but the fundamentals. “If you don’t hit the first two pillars of style and quality, you won’t have to worry about having an impact,” he says, “because you won’t.”

Sheldon says her company’s top-selling categories mirror that of standard promotional products: drinkware, bags and apparel. The results are not surprising. With quality significantly elevated, sustainable products stand on even footing with their non-sustainable counterparts, which means buyers don’t have to compromise on their favorite categories and styles.

Econscious has seen a huge increase in its accessory categories, particularly headwear. Stevens adds that organic cotton continues to be popular, but end-buyers are increasingly opting for recycled content products. “Our customers love the idea of finding innovative ways to harness the vast waste stream and give it another life in the form of new products,” she says. Whether it’s post-industrial recycled cotton used to make bags or recycled polyester for bottles, she says “there’s a growing enthusiasm for the idea of resource reclamation and the associated benefits.”

It’s easy to find a high-quality item that will get the customer excited. The benefit of reduced environmental impact will close the deal. Says Trotzuk: “When someone compares a product that doesn’t show any concern over the environment with one that does, if the quality is comparable, they’ll go with the feel-good aspect of a more sustainable product every time.”

Sound Choices
Customers have wised up on eco-claim tomfoolery. “You can’t just say your stuff is eco-friendly because it’s a mug and not a one-time use paper cup,” Trotzuk warns. “People are smarter than that.”

Anyone adopting the eco-conscious label has to confront the challenges of ensuring its veracity. Companies like Boardroom Eco Apparel have a true sense where the environmental impacts are; for the supplier, it’s deep in the supply chain. “When I look at the impact of making a polyester T-shirt,” Trotzuk says, “it’s way down in the extraction of the oil, the production of the yarn, the chemicals used in the dying process and the energy to make that input product.” Distributors can lean on suppliers and keep information for topics like energy usage, waste consolidation, even fair labor. The best eco buyers will welcome that transparency.

“We believe the more you know about textile production, the more inspired you’ll be to make environmentally sound choices,” says Stevens. “From the beginning, we’ve tried to foster a sense of curiosity in our customers.”

By covering those bases, you can instill a sense of confidence and excitement in your customers for eco products. That will continue with new materials and fabrics that are improving on the promises of the category. Stevens cites the growing interest for one fiber in particular. “Hemp is being recognized for its incredible strength, unique linen-like appearance and rapid growth at the plant stage,” says Stevens, whose company sells totes and hats made with hemp/cotton blends. “It’s a truly amazing fiber both from a performance and ecological standpoint.”

White takes inspiration from the developments in retail and the “incredibly innovative consumer products” she sees being created, such as running shoes from Adidas made from 95% recycled ocean plastic, or a shirt from Nikolas Bentel Studio that reacts to changes in pollution. “We hope that innovation seeps into our industry,” she says. “We’d love to see functional promotional products that are less likely to end up in the landfill.”

Chuck Zak is a contributing writer for Advantages.

Walking the Talk

Yes, anyone can source an eco product for a customer. But if you’re determined to succeed in this growing niche, a commitment to the values of sustainability is most prudent. Distributors and suppliers who thrive in this space reflect these values in their personal lives. “We are environmentalists and social activists first,” says Sarah White of Fairware Promotional Products (asi/191452), “and we use business as a force for good. I wouldn’t say we’re hippies, but we’re outdoor enthusiasts, bike riders, with a couple vegetarians for good measure.”

The trick is to intertwine a deeper mission into the core identity of your company. “The companies that I loved all had a soul,” says eco-handbag designer Hamilton Perkins. “They connected, they engaged. Their core values were integrated into the brand identity.” Perkins says it’s up to the owners and management to have the conviction of those core values and set an example for everyone involved; only then will the brand become synonymous with personal values of conscientious environmental stewardship. “Any kind of company can have a soul,” says Perkins.

Living these values also tends to attract clients who share the same ideals. “Our clients are predominantly organizations with a strong commitment to social and environmental responsibility,” White says. “They think about their purchasing, right down to the copy paper they buy.”

And the values shared between customer and company, driven by environmental concerns that require long-term thinking, are what makes for a symbiotic relationship that pays dividends. “I couldn’t be in this type of business without my personal passion,” adds Michelle Sheldon of distributor Eco Promotional Products (asi/185797). “Alternatively, we wouldn’t have a successful company if what we do didn’t have a place in the market.” –CZ

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