A new report Bain & Company revealed that over 60 per cent of businesses are not on track to meet their sustainability goals. The report also highlighted that consumers are willing to pay a premium for sustainable products, with a large number of people in India expressing high levels of concern about environmental sustainability, possibly influenced increasing pollution and extreme weather incidents.
Consumers in fast-growing markets, particularly in India, are willing to pay a 15-20 per cent premium for sustainable products, compared to markets like the US and UK. However, the report also noted that Indian consumers are still at an early stage of understanding sustainability, and their behaviors are influenced cultural norms and financial realities.
The survey, which included 23,000 consumers, showed that almost 64 per cent of people reported high levels of concern about sustainability, with their worries intensifying over the past two years, largely due to extreme weather events. Karan Singh, Partner and head of the Asia Pacific Sustainability practice at Bain & Company, emphasized the gap between intent and action among Indian consumers, and identified a business opportunity to educate and innovate to offer sustainable products at attractive prices.
The report also highlighted that consumers in the US are willing to pay an average premium of 11 per cent for environmentally friendly products, while those in fast-growing markets such as India, Indonesia, Brazil, and China are willing to pay between 15 and 20 per cent extra. On the other hand, consumers in the UK, Italy, Germany, and France are only willing to pay between 8 and 10 per cent extra for sustainable products.