Written by: Jordan Sprogis
Edited by: Lillian Castro
Reviewed by: Christina Lewis
In late 2020, the Reshoring Institute conducted a survey that revealed nearly 70% of respondents preferred American-made products, with more than 83% willing to pay up to 20% more for domestic products. This underscores the strong preference among American consumers for the “Made in the USA” label. But what about products made in their own state?
HostingAdvice sought to answer this question, specifically looking into how much of a premium people would pay for products produced and sold online by businesses in their state. The survey of 3,000 consumers found that, on average, people are willing to pay a 23% premium for products with a “Made In…” label from their state.
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Hawaii Residents Are Willing to Pay 35% More for Local Products
Hawaii residents value locally sourced products the most and are willing to spend up to 35% more on items made in the islands, perhaps due to the high cost of imported goods. On the other hand, New Yorkers are the least willing to pay a premium, with an average willingness to spend only 8% more on local products.
HostingAdvice has created an infographic showing the premiums people are willing to spend on products made in their state:
The survey also revealed that 32% of online shoppers specifically look for locally made products, while 40% do so occasionally. Meanwhile, 28% of those surveyed said they do not consider the origin and opt for the best available option regardless of where it was made.
90% Trust the Quality of American Made Products Over Imported Ones
When it comes to American-made products, there is a strong loyalty: 90% of respondents trust the quality of American products over imported ones, and 72% would choose a more expensive American product over a similar international one.
Consumers are most willing to pay a premium for the following locally made products, in order of preference:
- Health and beauty products
- Clothing and apparel
- Cars and car parts
- Electronics
- Home appliances
- Furniture and home decor
- Food and beverages (e.g., specialty foods, craft beer)
- Sporting goods and outdoor equipment
- Children’s products (e.g., toys, clothing)
- Jewelry and accessories
- Construction materials (e.g., flooring, tools)
81% of Online Marketers Adjust Their Marketing Strategies By Region
Additionally, HostingAdvice surveyed producers of locally made products, especially those selling online. It was found that 81% of online marketers adjust their marketing strategies based on the region they are targeting. Furthermore, 70% have noticed a significant shift toward products marketed as made in their state over recent years.
Many eCommerce businesses also support local causes and organizations, finding it easier to raise funds with the convenience of online transactions. An impressive 85% of online businesses reported that contributing to local causes has benefited their business.
Future Trends
Our findings highlight a growing trend among American consumers who not only value the ‘Made in the USA’ label but also strongly prefer products made within their own states. Local loyalty is driving significant premiums, with consumers recognizing the quality and supporting their local economies.
Methodology
Online panel survey of 3,000 Americans based on age, gender, and geography. Internal data sources are used to obtain population data sets. We used a two-step process to ensure representativeness through stratified sampling and post-stratification weighting. May 2024.
