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Sustainability awareness is high in Asia-Pacific, where the majority of consumers are open to spending more on eco-friendly products. How can brands and retailers capitalize on the green opportunity—while also doing good for the environment?
As sustainability awareness rises in Asia-Pacific, brands are walking the tightrope between profitability and being "green." Embracing sustainability invites complexity; it affects every business decision, from pricing to procurement. What’s more, consumers are savvy at spotting greenwashing, so brands have to be 100% authentic about their sustainability efforts.
However, with extreme climate events happening more frequently and more governments committing to efforts to reduce their carbon footprint, brands need to take sustainability seriously. Brands and retailers are rightfully concerned about their bottom lines. But pound for pound, consumers in Asia-Pacific are some of the most eager worldwide to spend more on greener alternatives.
Consumers in Asia-Pacific are willing to pay more for sustainable products
The majority of consumers in Asia-Pacific are willing to shell out more money for products that are considered sustainable, according to a 2023 Rakuten Insight Global survey. This sentiment is particularly strong in the region’s emerging economies, where environmental concerns are increasingly influencing purchasing decisions. These areas often experience the most severe impacts of environmental degradation, making the need for sustainable practices more urgent. And with a growing middle class driving these emerging markets, governments are increasingly implementing policies that promote sustainability for long-term growth.
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