Sustainability programs have grown substantially for several reasons. While meeting government regulations is often the first reason, businesses are seeing increasing pressure from their stakeholders, especially those of publicly traded companies. Today, building a brand that is both environmentally and socially responsible is crucial in ensuring strong business performance amongst a changing consumer environment. For many companies, being “green” is still simply consider something nice to have as oppose to a necessary business change. Others have jumped in head first, increasing investments in alternative materials and processes to better conform to sustainability goals.
Both the US and Europe based corporations were early to adopt green certifications, so the rate of growth in these areas has slowed. In developing countries though, such as China and India, sustainability programs are accelerating. While major improvements are being made in energy efficiency along with new technologies, funds are limiting the transition in these emerging economies.
This sustainability movement has both challenged and helped manufacturers and suppliers, especially those in packaging, construction, and transportation markets. Volatile organic compound (VOC) and hazardous materials regulations and standards have made these divisions heavily increase investments to ensure compliance. Companies have also taken this opportunity to achieve greater application performance.”
The millennials play a major role behind the “Green” demand. They are not hesitant to pay extra for the “green” sustainable products. In addition, they prefer to stick to the companies that are committed towards providing sustainable products for the consumers. The environmental and social impact created by these companies are strong. Since the millennial population is rising, it is possible to predict that the demand available for these companies and their services or products would increase in the future.
The above mentioned facts were proven from statistical researches that were conducted in the past as well. In one such study conducted with the participation of 1,000 consumers across United States and Europe, it was identified that around 70% to 80% of the population is willing to pay a premium of up to 5% to purchase the products or services offered by companies that adhere to the green revolution.
As you already know, there is a tight competition in between the companies that exist out there in the world as well. All the companies are looking forward to get the attention of more customers as much as possible. The green revolution has created an ideal opportunity to them. They take necessary measures to give life to “green” products and services, which have a higher possibility of capturing customer attention. As a result, they will be able to increase the sales volume and gain competitive advantage in the market as well.
Since all the major brands are trying to adhere to the green revolution, planning for the green demand has become more convenient. There will be a higher number of products available for the people to consider and buy. On the other hand, there will be an excellent variation in between available products as well. Therefore, people don’t need to keep any doubts in their minds when investing their money on the products or services that they need.
Bizzozero, J. (2019, January 16). Demand for sustainable products transforming the supply chain. Retrieved from https://www.naturalproductsinsider.com/sustainability/demand-sustainable-products-transforming-supply-chain
Customers Demand Green. (n.d.). Retrieved from https://www.sba.gov/content/customers-demand-green
