Indian consumers favour sustainable brands, but only with affordable and credible choices: Great Lakes study
The study found that 46% of respondents often choose eco-friendly and socially responsible brands, indicating rising awareness and selective engagement.
Gurgaon, December 15: Indian consumers are increasingly conscious of sustainability but remain price-sensitive, with nearly 58% willing to pay only up to 10% more for environmentally friendly products, according to a new study by Great Lakes Institute of Management, Gurgaon.
The findings were unveiled at the Winter Conference on Sustainable Business 2025 and are based on responses from over 100 participants. The study describes the emergence of a “conscious-but-cautious” Indian consumer—aware of sustainability issues, inclined towards responsible brands, yet unwilling to bear a high green premium.
The study found that 46% of respondents often choose eco-friendly and socially responsible brands, indicating rising awareness and selective engagement. However, affordability, accessibility and authenticity remain critical factors influencing purchase decisions.
FMCG emerged as the category where sustainability matters the most, with nearly 39% of respondents actively considering environmental impact while buying food, personal care and household products. Researchers noted that sustainability resonates strongest in categories involving frequent purchases and everyday use.
Trust emerged as a decisive factor, with nearly half of consumers validating sustainability claims through brand disclosures and reports rather than advertisements. The study suggests that transparency and verifiable data are becoming more influential than marketing narratives, amid growing concerns over greenwashing.
Environmental responsibility is a strong personal value, with over 90% of respondents saying it is important to care for the environment and conserve natural resources. Most respondents associated sustainability primarily with environmental protection and minimising harm to natural ecosystems.
While sustainable habits such as using reusable bags are becoming common, the study highlighted behavioural gaps in practices like composting and waste segregation, pointing to the need for simpler and more convenient pathways for sustainable living.
“This report helps us understand the evolving mindset of the Indian consumer—from awareness to expectation to action,” said Sanghamitra Bhattacharya, director, Centre for Sustainable Development. She said the findings reinforce the relevance of the SCORE Index, an indigenous sustainability content index developed by the institute in partnership with India Data Hub, which aims to strengthen the role of business media in sustainability awareness.
Jones Mathew, principal and head of the institute, said the study offers a practical roadmap for companies. “Transparency, cost sensitivity and everyday relevance must guide sustainable innovation,” he said.
The findings come at a time when sustainability is gaining sharper policy and business focus in India, particularly among urban and digital-first consumers. The study concludes that brands offering credible, affordable and easy-to-adopt sustainable solutions are more likely to build long-term trust and differentiation.
