Customer preference shifting due to climate change: Bain & Co

Extreme weather conditions and concerns about climate change are influencing the preferences of Indian consumers towards sustainable products, according to a survey conducted by the global consultancy firm Bain and Company, which involved nearly 19,000 consumers across 10 countries.

In India, 40% consumers said personal experience with extreme weather as the top reason they decided to buy sustainable products, followed by 37% attributing it to social media campaigns and advertisements, and 32% to peer influences, the survey says.

Globally, 76% of global consumers believe a sustainable lifestyle is important “because their actions have an impact,” while in India, 64% of people surveyed said their level of concern about climate change have increased. The survey suggests that when living sustainably, consumers in India tend to adopt habits that focus on reducing consumption, enhancing reusability, and avoiding waste—shaped largely by cultural norms and financial considerations. Indian consumers are also more inclined to adopt a vegetarian or vegan diet and much less likely to recycle compared to developed markets like the US or other environmentally conscious developing markets such as Indonesia, the survey revealed.

"Indian consumers prioritise health, price, and quality while shopping. When choosing sustainable options, they predominantly seek products with 'natural' attributes across various categories. For consumers in India, packaging choices are very important; 83% believe the environmental impact of packaging is very important compared to a global average of 61%. This presents a significant opportunity for businesses to lead by innovating to offer sustainable products that align with their health and quality expectations at competitive prices,” said Ravi Swarup, partner and India lead for consumer products practise at Bain & Company.

When it comes to sustainable shopping, globally consumers say that brands and retailers play a big role in their decision-making process. While personal experience with extreme weather is the top reason consumers say they decided to buy sustainable products, 35% say they made the choice due to media articles and documentaries, 33% attribute it to availability, and 28% credit awareness campaigns by brands and retailers, the survey said.

"Our research in India highlights the need for consumer companies to tailor their strategies to local preferences by emphasising natural and vegetarian product options, prioritising packaging that minimises waste, and promoting mindful consumption. Building partnerships across the value chain to increase accessibility and affordability of sustainable products will also be key to meeting the evolving expectations of Indian consumers,” said India-based Karthik Ganesan, partner and a leading member of Bain & Company’s consumer products practice.