Indians finally buying ecofriendly products? Yes, but only if it’s pocket-friendly
This gradual, yet visible, shift in buying behaviour follows several futile attempts by companies to push sales of such products that either cost more or failed to spell out a clear value proposition for the consumer.
Data by market researcher GfK India showed the contribution by volume, or number of units sold, for energy saving ACs with four and five stars has moved from 14% in 2019 to 27% in 2023. But for a category like refrigerators, which wouldn’t inflate power bills as much as an air-conditioner would, the volume contribution of such models remains flat at 10%.
Similarly, GfK data showed volume contribution of energyefficient inverter AC models climbed to 84% in 2023, from 61% in 2019, after manufacturers priced the new models on a par with the older, fixed-speed compressor variants.
“When all things are equal, especially with regard to price and value, only then do consumers tend to prefer sustainable products and brands,” said Sameer Satpathy, chief executive, personal care products, ITC.
He said sustainability is not a primary driver for consumption to date, at least not for fast moving consumer goods (FMCG). “And it’s not about the income of consumers but a mindset that cuts across income classes,” said Satpathy.
In FMCG, sustainable items such as handwash powders now account for almost half of all handwash sales, said Sudhir Sitapati, managing director at Godrej Consumer Products.
33% Prioritise Health Gains: Gfk
This is especially true of neighbourhood stores, Sitapati said.
Godrej Consumer
