Consumers want businesses to help them be more environmentally-friendly, research finds

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Businesses that fail to bring greener products and services to market could see sales decline over the next five years, new research reveals.

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The research, conducted by The Institute of Customer Service, finds environmental sustainability is now the most important factor in the purchasing decisions of 18% of UK consumers. The study predicts this could grow to 55% of consumers in the next five years.

The data shows the increasing desire for greener products and services could already be impacting sales, with one in 10 consumers say they’ve stopped buying a product or service due to its adverse environmental impact. Food, drink, beauty, cosmetics, and cleaning products were found to be most likely to fall out of favour for not meeting environmental criteria.

In addition, the study reveals that 75% of consumers expect businesses to help them be greener and 83% of consumers say businesses should be doing more to be environmentally sustainable.

The research also finds that 11% of consumers have wanted to buy an environmentally sustainable product or service but were not able to, with the main reasons being price, reliability, and quality. However, 34% of consumers are prepared to pay an average premium of 5.5% for environmentally sustainable goods.

Jo Causon, chief executive of The Institute of Customer Service, said: “Just like with the consumers themselves, there are some organisations who are early adopters and others who lag behind in their action. But I believe that now is the time for all businesses to take action.

“Those who serve their customers not only with quality and value but with sustainability built in will flourish; while those who ignore the issue are likely to lose customers and market share. The green agenda has moved from a nice-to-have to a core strategic issue.”