Over 70% of consumers are willing to pay more for sustainable products

But, most shoppers have not done so in practice.

More than 70% of consumers said they are willing to pay higher for products that have a positive impact on the environment or health, Bain & Company reported. 

Shoppers in Asia-Pacific led with 90% of consumers who are willing to pay more, followed by European consumers (74%), and American consumers (71%).

Despite this, Bain & Company found that most consumers are not changing their shopping behaviors.

“Inflation is of course making consumers more sensitive to price – but at the same time it’s also encouraging them to revisit deeply engrained consumption habits,” Luciana Batista, a Partner in Bain’s Retail, Consumer Products and Sustainability practices, said. 

“This offers a rare opportunity for retailers to disrupt the status quo and encourage circular models that see consumers returning products or reusing packaging for a discount in the future. Combined with greater choice and clear communication at the point of sale, inflation can be a catalyst for more sustainable behaviour.”

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Moreover, the report found that the higher inflation is also worsening the funding gaps challenge retailers face in investing in sustainability. 

“A high-risk environment may reduce investment into sustainability in the short term but there is much retailers can do to decarbonise without making significant financial investments,” Luciana also said. 

“Energy and waste saving measures can help to reduce costs and exposure to risk in the short term, while more comprehensive commitments are developed.”