Sustainability is no longer a choice - it is an increasingly integral factor in a consumer’s purchase decision, especially in the durable goods sector. What was once viewed as a luxury, or a nice-to-have feature, has now become an essential baseline, which consumers are willing to pay a premium.
Prashant Dhar, Director - Marketing, A. O. Smith India (Source: prhandout)
Today’s consumers actively seek out products that reflect a commitment to environmental integrity, ethical sourcing, and social responsibility. Increasingly aware of the long-term impact of their choices, they are not only scrutinising what they buy but also how it will impact our environment.
A 2024 PwC India survey highlights this shift: 60% of Indian consumers now prefer sustainable products and are willing to pay a premium. This willingness to invest more in sustainable products signals a profound change in consumer psychology. It’s no longer just about performance or price; it’s about purpose.
This change has been accelerated by the rise of digital platforms. Social media and search engines have become powerful tools, empowering consumers with information about environmental issues, product origins, and corporate sustainability commitments. In fact, about 82% of consumers in India today, say that they have started shopping more sustainably within the last five years.
Widespread consciousness about a healthy environment
Consumers today are increasingly conscious of the environmental and ethical implications of their purchases. They understand the importance of reducing waste, recycling products, and lowering carbon footprints, while also favouring ethically sourced goods in their daily lives. This growing awareness has been shaped by strong consumer movements and advocacy for healthier, environmentally sustainable lifestyles. As a result, buyers are not only choosing products based on performance but are also actively seeking transparency around production processes to ensure ethical and fair practices. While sustainable products may carry a higher initial cost, consumers recognize the long-term value they offer - be it through energy efficiency, lower maintenance, or reduced operational expenses.
Millennial and Gen Z influence
Younger consumers, especially Millennials and Gen Z, are at the forefront of this transformation. They are more eco-conscious than previous generations and expect brands to take responsibility for ecological safety. This demographic is also willing to pay more if they find a product that is both aesthetic and healthy. For instance, organic products, energy saving water heaters and high recovery water purifiers, and electric vehicles (EVs) often come at a higher price point than their conventional counterparts, but consumers see these as worthwhile investments, considering long-term environmental benefits.
Brands and businesses have made sustainability a value
Leading companies have made sustainability a core component of the business strategy, while communicating these efforts to consumers. This visible commitment has helped build trust and brand loyalty, particularly among eco-conscious buyers. In India, this momentum is further reinforced by regulatory frameworks set by bodies like Bureau of Indian Standards (BIS) and Bureau of Energy Efficiency (BEE). The BEE star-rating system has emerged as a key factor influencing purchase decisions with consumers actively seeking higher-rated products for their long-term energy savings. At the same time, BIS certifications ensure adherence to critical safety, quality, and environmental standards. Together, these regulatory measures are making sustainability not just a strategic choice for businesses but a compliance necessity, driving the industry toward greener, more responsible product development.
Policy has also sped up adoption of sustainable products
Policies such as carbon taxes, emissions regulations, and incentives for sustainable business practices also encourage businesses and consumers to shift toward more sustainable behaviors. Many companies have even adopted sustainability targets. There is a growing trend towards achieving net-zero emissions, reducing waste, and engaging in responsible sourcing practices. Norms are becoming more stringent in this regard.
In conclusion, it can be said that the rapid increase of sustainability-conscious consumers who are willing to pay a premium represents the inevitable demand for ethical, eco-friendly, and socially responsible products. Products such as water purifiers, water heaters and heat pumps that embrace sustainability not only garner customer loyalty but also drive positive change in other industries.
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