Consumers turning focus on environmentally friendly products
Consumers are paying attention to environmentally friendly products and services, as environmental issues were affecting their lives, Kasikorn Research Centre (KResearch) said on Thursday.
KResearch said all consumers were affected by environmental issues in some way, such as rising cost of living due to natural disasters and medical expenses due to air pollution and waste.
It said environmental issues had forced consumers to improve their behaviour in a bid to mitigate the impact on the environment, such as by using biodegradable packages and energy-saving devices.
However, it said consumers weren't interested in using public transportation to reduce energy consumption, making it necessary to develop a transportation system that meets consumers' demands.
Consumers also want manufacturers to launch more environmentally friendly products and services, as well as boost confidence in product and service quality and safety, KResearch said.
It said 66.3 per cent of consumers are willing to purchase environmentally friendly products and services at a price not more than 20 per cent higher than normal ones.
It added that only 3.4 per cent of consumers are willing to purchase environmentally friendly products and services at a price similar to normal ones.
"This reflects consumers' readiness to purchase products and services at a higher price to mitigate impact on the environment," KResearch said.
It added that 71.4 per cent of consumers are interested in purchasing foods and beverages which are environmentally friendly, followed by consumer goods, such as soap, shampoo and detergent (49.3 per cent).
"The business sector may take advantage of this issue to expand business and boost sales," KResearch said.
It added that 95.8 per cent of investors suggest the business sector should implement ESG -- environmental, social, governance -- strategy in business operations to gain confidence among consumers.
It added that 85.7 per cent said they are taking ESG strategy in their investment consideration.
"In addition, 75.4 per cent of respondents are likely to sell companies' assets that are facing ESG issues," KResearch said.
It added that 72.8 per cent of investors were interested to invest in businesses related to renewable energy, followed by biotechnology (50.1 per cent) and food and beverages (46.7 per cent).
KResearch also suggested that cooperation among sectors, especially the government sector, is necessary to tackle environmental issues and enable consumers to purchase environmentally friendly products and services at a reasonable price.