It should come as no surprise that consumers now consider sustainability to be a major factor when making purchases. According to studies, a significant percentage of buyers are willing to pay more for goods that are more environmentally friendly. For example, despite economic concerns, customers are prepared to spend an average of 9.7% more on products that are created or supplied sustainably, according to PwC’s 2024 Voice of the Consumer Survey.
Why is this the case? Growing consumer knowledge of environmental issues and a desire to help bring about good change are some of the reasons behind their willingness to pay more for eco-friendly products. Consumer awareness has grown as a result of various factors, including greater media coverage of climate change, international campaigns for sustainability, and laws encouraging greener behaviours. Furthermore, Gen Z and millennials, who place a higher priority on values-driven consumption, are taking over the market and shaping expectations and trends. Buying eco-friendly products is becoming increasingly popular as a means for consumers to support businesses that promote sustainability and match their spending with their moral principles. This move is indicative of a larger societal trend in which people are trying to make more significant, well-informed decisions, even if doing so comes at a higher cost.
A study by Bain & Company found that consumers are willing to pay a premium of 12% on average for sustainable products, though actual market premiums can be higher, potentially limiting widespread adoption.
At GMG, we recognise this growing consumer inclination towards sustainability and have integrated eco-friendly practices across our operations, check out our sustainability report last year here. Our commitment is evident through various initiatives aimed at reducing environmental impact. Between 2022 and 2023, we transitioned to 89% green energy usage in our logistics operations, significantly decreasing our carbon footprint.3
Additionally, we’ve implemented measures to minimise plastic usage, such as replacing 35,000 square meters of plastic tape with paper alternatives and eliminating nearly 295,000 plastic bottles through water station installations.4
For us, the work doesn’t stop there. Our outdoor furniture brand, Suncoast, has demonstrated a strong commitment to sustainability by integrating eco-friendly products and practices across its operations. Founded in 2003, Suncoast started its journey as a single warehouse, being a niche supplier in the B2B segment. Suncoast, which is well-known for its outstanding quality, long-lasting furniture, and customer-focused principles, doesn’t exclusively look at style above the concern of the environment. Setting the standard for environmentally conscious outdoor furniture, every stage of the production process is planned to have the least possible negative impact on the environment.
Our Suncoast brand is also driven by meeting the requirements of our regional customers, and we take pride in the local production of our products. Our brand’s usage of recyclable aluminium and FSC (Forest Stewardship Council) certified teak which demonstrates its dedication to sustainable resources, as being FSC certified indicates that it is attained from responsibly managed forests.Through ethical teak sourcing, Suncoast uplifts communities that rely on these resources promotes sustainable forestry and safeguards ecosystems. Furthermore, using recyclable aluminium not only cuts waste but also appeals to customers who are concerned about the environment and are searching for durable, eco-friendly products.
For Suncoast, incorporating materials into design involves using recycled plastics and ocean-cycle plastics to combat plastic waste and promote a circular economy. Suncoat’s outdoor furniture is entirely free from PFCs (Perfluorinated Compounds), which are harmful to the environment. By eliminating these chemicals, we minimise our ecological impact and prioritise consumer safety.
Energy-efficient lighting options like solar-powered lights and energy efficient LED bulbs are also included in Suncoast’s creative designs. By utilising renewable energy sources and decreasing dependence on conventional power sources, these features provide consumers with an economical and environmentally friendly way to light up outdoor areas. This combined emphasis on sustainability and functionality improves any space’s atmosphere while drastically reducing carbon emissions and energy use.
Suncoast provides clients with peace of mind by offering a two-year warranty on all of its items, further demonstrating its dedication to producing long-lasting, environmentally friendly furniture. Suncoast is a leader in sustainable outdoor living solutions because of its approach, which reflects its conviction that elegant, practical designs can coexist with environmental responsibility.
Our sustainability efforts are not only about internal operations but also about offering products that align with our customers’ environmental values. By providing eco-friendly options, we cater to the increasing demand for sustainable products, ensuring that our offerings meet the expectations of environmentally conscious consumers.
In conclusion, the willingness of consumers to pay a premium for eco-friendly products is a clear indicator of the shifting market dynamics towards sustainability. At GMG, we are dedicated to leading this change by adopting sustainable practices and offering products that contribute to a healthier planet.
References
- PwC’s 2024 Voice of the Consumer Survey
https://www.pwc.com/gx/en/issues/c-suite-insights/voice-of-the-consumer-survey.html
- Bain & Company Study on Consumer Willingness to Pay for Sustainability
- GMG Sustainability Milestones
- Communicate Online: GMG Sustainability Highlights