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Consumers willing to shell out more for eco-friendly items; brands board green bandwagon

An overwhelming 65% of global consumers are ready to shell out more for brands which use sustainable products and nine in every ten customers are also ready to switch to eco-friendly brands.

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Image: Bloomberg

An overwhelming 65% of global consumers are ready to shell out more for brands which use sustainable products and nine in every ten customers are also ready to switch to eco-friendly brands if price and quality were equal. “Consumers want companies to take sustainability and greater purpose as seriously as they do,” Bain & Company said in a recent report. In fact, those companies who are keeping up with the trend and “getting ahead of consumer sentiment are reaping the rewards,” the report added.

In fact, companies are also on board with the sustainable trend and have launched products that are in tune with rising customers’ expectations of eco-friendly products. Hindustan Unilever, the Indian arm of British-Dutch FMCG major, recently brought Unilever’s ‘Love Beauty and Planet’ range of skincare products to India. Speaking about the same, Piyush Jain, Global Vice President, Unilever said: “The only way to serve our consumers is by creating brands that deliver great beauty results and also show respect for our planet by being accountable for, and working to reduce our carbon footprint,” he said. The brand uses recycled plastic for its bottles. Unilever’s move towards sustainability has paid off with its 28 sustainable living brands growing 69% faster than its regular brands. 75% of the company’s growth is driven by sustainable brands, the Bain & Company report said. 

Another leading FMCG firm P&G’s India arm is investing in startups who are focusing on sustainability. “Environmental sustainability is a key pillar of our citizenship efforts, and embedded in our business strategy,” Madhusudan Gopalan, managing director and chief executive officer, P&G Indian Subcontinent, said in November. Swiss FMCG brand and maker of Maggi noodles also recently announced that its popular brands like Maggi and KitKat will be plastic neutral by 2019’s end. 

In fact, FMCG startups have also acknowledged that sustainability is the way to go forward. Several brands have emerged who have based their business model towards being green. Buzz words in FMCG space hence remain natural, green, organic, eco-friendly, sustainable, ethical sourcing etc. 

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