60% of consumers opting for sustainable products, willing to pay more for it: PwC Survey

According to the survey, 46 percent of Indian consumers view climate change as a significant threat, driving 60 percent of them to change their behaviour and move toward sustainable products. They are even willing to pay a premium of 13.1 percent (vs price base lines) for sustainably sourced goods.

In a significant shift towards sustainability, 60 percent of Indian consumers are actively choosing sustainable products, according to a survey on consumer sentiment by PwC India. This trend underlines a growing awareness of consumers consciousness towards climate, which is driving this sustainable choice.

“Consumers care about sustainability – and are willing to pay more for it. Consumers tell us they would be willing to pay 13.1 percent above the average price for sustainably produced or sourced goods (globally, this figure is 9.7%),” stated the survey.

The survey titled, ‘Voice of the Consumer Survey 2024’ interviewed 1,000 Indian consumers, reveals that climate change is a key driver influencing consumer behaviour, with 46 percent of respondents identifying it as a significant threat. This concern has led 60 percent of consumers to alter their purchasing habits, favouring products that promote water conservation, eco-friendly packaging, and waste reduction.

"Indian consumers are demonstrating a strong preference for sustainable products, reflecting a broader shift towards environmentally conscious consumption," said Ravi Kapoor, Partner and Leader – Retail and Consumer sector at PwC India.

However, affordability still plays a major role for consumers, as 35 percent are likely to consider better value for money as the single largest factor for brand switching. Technology is enabling in-store shopping with 41 percent of consumers feel they would be encouraged to shop in-store if there will be availability of mobile or contactless payment solutions.

For Indian consumers, as the survey highlights, the in-store retail experience trumps online shopping. "56 percent of consumers purchase from physical stores, while 47 percent shop online," noted the survey. More than 60 percent customers prefer engaging with salesperson and visiting physical stores, while 53 percent turn to online browsing.

According to the survey, concerns around privacy and data security, particularly on social media platforms is growing. Despite 58 percent of consumers purchasing products through social media channels, 76 percent expressed apprehensions about privacy and data sharing, making it the least trusted purchasing channel among respondents.

Moreover, the survey underscored the importance of personal data protection in fostering consumer trust. A striking 82 percent of respondents identified the safeguarding of personal data as crucial in their decision to trust a brand, signaling a critical area for businesses to prioritize.

In terms of shopping preferences, the survey revealed that 56 percent of Indian consumers frequently purchase non-grocery items from physical stores, a statistic higher than the global average. This preference for in-store shopping highlights the continuing appeal of physical retail environments in India.