A new report from Bain & Company has revealed that more than 60% of businesses are falling behind on their sustainability goals, despite growing consumer willingness to pay a premium for sustainable products. The report, based on a survey of 23,000 consumers, shows that Indian consumers are particularly concerned about environmental sustainability, likely driven by increased pollution and flash floods. In fact, consumers in fast-growing markets like India are willing to pay a 15-20% premium for sustainable products, compared to 8-10% in markets like the US and the UK. However, the report also highlights that Indian consumers are still at an early stage of understanding sustainability, with cultural norms and financial realities influencing their behaviors.
Karan Singh, Partner and head of the Asia Pacific Sustainability practice at Bain & Company, notes that while Indian consumers are showing a growing interest in sustainability, there is a noticeable gap between intent and action due to factors such as high prices and limited product information and availability. This presents a significant opportunity for businesses to educate consumers and offer sustainable products at attractive prices.
The report also found that consumers in the US are willing to pay an average premium of 11% for products with a minimized environmental impact, despite products marketed as sustainable commanding a 28% premium. Meanwhile, consumers in fast-growing markets like India, Brazil, and China are willing to pay an even greater premium, between 15-20%.
In conclusion, the report emphasizes the increasing urgency of sustainability topics and the need for a combination of technology, policy, and behavior change to make progress. With consumer and employee awareness on the rise, businesses have the opportunity to take the lead in promoting sustainability and offering environmentally sound choices.
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