Soaring Demand for Green Products and Services in Singapore provides Untapped Opportunities for Businesses
Singapore – Escalating consumer demand for Green products and services in Singapore, driven by concerns about climate change, has left local businesses with significant untapped opportunities, according to independent research from TÜV SÜD Asia Pacific, one of the world’s leading providers of testing, inspection and certification services.
The study, named the TÜV SÜD Green Gauge 2010, is the first to investigate, compare & contrast consumer and corporate attitudes to Green products, services, policies and certifications in Asia. It revealed that 94 percent of consumers in Singapore are interested in Green issues1; 72 percent are willing to pay a premium (11 percent on average) for Green certified items2, and 62 percent claim to purchase Green products and services.
In contrast, the study showed that businesses in the country expect 35 percent of consumers to be willing to pay more for Green credentials. Furthermore, just 37 percent of businesses in the surveyed industries (home electronics, food and beverage, and clothing and footwear) produce or trade Green products4 – 22 percent less than those in China. In addition, the vast majority (80 percent on average) either do not have a policy or guideline to minimize their impact on the environment in place or fail to communicate they have one to management-level staff
Mr Ishan Palit, CEO of TÜV SÜD Asia Pacific, said, “The TÜV SÜD Green Gauge 2010 shows that there is generally a high level of interest in Green issues by both businesses and consumers. However, businesses appear to not be aware of the intensity of interest among consumers and how this translates into demand for Green products and the willingness to pay premiums of over 10 percent for them. This shows a large and potentially lucrative opportunity in the market.”
In addition to assessing demand, awareness and interest levels in Green products, services and policies, the TÜV SÜD Green Gauge 2010 also investigated reasons behind rising consumer demand, how Green credentials affect purchasing behaviour and barriers to entry for businesses.
The research suggests that concerns about climate change are fuelling the rising demand for Green products and services in Singapore. On a global scale, nearly half (48 percent) believe climate change is the world’s most critical Green problem.
Climate change driving demand
The research suggests that concerns about climate change are fuelling the rising demand for Green products and services in Singapore. On a global scale, nearly half (48 percent) believe climate change is the world’s most critical Green problem.
Green Certifications important to consumers
The study demonstrates that, surprisingly, consumers are more aware of Green certifications than businesses and have a greater understanding of their importance. Half of consumers polled were aware of such standards and 42 percent said they are “very important”, compared to 43 percent and 15 percent of businesses respectively. Independent documentation was shown to be the main reason behind consumer insistence on Green certifications, as it adds credibility to the product.
Mr Palit added: “Consumers in China, India and Singapore have become increasingly sophisticated when it comes to Green issues. They understand the importance of action, and therefore look to purchase green products and services that are independently certified to green standards. Businesses, on the other hand, appear to be slow on the uptake. This is surprising; especially considering the demand is there.”
Businesses want Government to take the lead
When asked who should take the lead on solving Green issues, businesses in Singapore suggested the Government. The vast majority also claimed that Industry and Government regulations are the main reason why they would implement CSR and sustainability policies and guidelines.
Mr Chong Weng Hoe, CEO of TÜV SÜD PSB, Singapore, concluded: “Consumers in Singapore are showing increasing demand for Green products and services, especially when additional health, safety and financial benefits are clearly communicated to them. This offers a very real business opportunity to consumer brands, one that is only set to increase in the years to come. We hope the results of this research help organisations understand this. Green makes good business sense.”
The study, named the TÜV SÜD Green Gauge 2010, is the first to investigate, compare & contrast consumer and corporate attitudes to Green products, services, policies and certifications in Asia. It revealed that 94 percent of consumers in Singapore are interested in Green issues1; 72 percent are willing to pay a premium (11 percent on average) for Green certified items2, and 62 percent claim to purchase Green products and services. |