Brands need to respond to Asia’s environmentally conscious consumers | WARC | The Feed
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Brands need to respond to Asia’s environmentally conscious consumers
Most Asia-Pacific consumers (90%) are willing to spend a premium on sustainable products, but they don’t buy these goods due to a lack of information and availability or because they don’t trust claims of sustainability, according to a study by global management consulting firm Bain & Company.
Why it matters
Asia-Pacific markets care about the environment just as much as Western markets – and they care even more about health-related ESG matters. Two of the five consumer segments identified by the research are as large or larger in Asia-Pacific than in Europe or the US, so there’s a significant opportunity for those brands that can address the concerns highlighted in the report: 40% of consumers plan to increase their spending on sustainable products in the next three years.
Two significant consumer segments
- Environmentally and socially conscious: These consumers want to purchase healthy products that are good for the planet from companies that show concern for their employees and suppliers. They represent 14% of Asia-Pacific consumers, consistent with Europe and the US (both 14% as well).
- Health conscious: These consumers are primarily concerned with making healthier choices for themselves and their families, often considering sustainable products as a route to better health. They also rank ‘good for planet’ as one of their top three key purchasing criterion making them both health and environmentally focused. This cohort represents 51% of all consumers in Asia-Pacific, far more than Europe (27%) and the US (31%).
Two market facts
- Consumers in the region's fast-growing markets (China, India, Indonesia, Thailand, Malaysia, the Philippines, and Vietnam) are more conscious of environmental and social factors than those in the more mature markets of Australia, Singapore, Japan and South Korea.
- Sustainability is equally important across age and income groups.
Sourced from Bain & Company [Image: Getty images]
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