A Study on Consumer Demand for Eco-Friendly Products in India: Trends, Drivers, and Barriers to Adoption with Reference to Five Major Cities in Andhra Pradesh

Abstract

Introduction: India's trajectory as a rapidly developing economy is accompanied by significant environmental concerns, including alarming levels of air and water pollution, deforestation, and the growing challenge of effective waste management. Addressing these issues demands a shift towards more sustainable consumption patterns, and eco-friendly products are increasingly recognized as a key element in facilitating this transition. This study investigates the demand for eco-friendly products among Indian consumers, aiming to identify key drivers and barriers that shape their purchasing decisions.

Methodology: A mixed-methods research design was adopted, combining a quantitative survey with qualitative in-depth interviews. A structured survey questionnaire was administered to 400 Indian consumers residing in urban areas across five major cities: Visakhapatnam, Vijayawada, Guntur, Tirupati and Kakinada. A stratified random sampling technique divided the sample by age group, household income level and educational attainment using census data. The questionnaire included Likert-scale items measuring environmental awareness using a scale adapted from Dunlap and Van Liere's New Ecological Paradigm, attitudes towards eco-friendly products adapted from Chan and Lau, perceived benefits, perceived costs and purchasing behaviour. Data were analysed using descriptive statistics, correlation analysis and multiple regression in SPSS version 25. Semi-structured interviews were conducted with 15 participants comprising 10 consumers and 5 industry experts, analysed thematically following Braun and Clarke.

Results & Discussion: Of 400 respondents, the mean age was 42.69 years with a standard deviation of 13.02; 50.75% were male, 45.00% female and 4.25% other; 41.00% were low income, 39.00% middle and 20.00% high; and 39.50% held a bachelor's degree. City representation was Tirupati 23.00%, Vijayawada 21.25%, Visakhapatnam 19.50% and Guntur 18.25%. While 75% self-reported being somewhat or very aware of the term eco-friendly products, only 40% provided accurate definitions, revealing an awareness-understanding gap of 35%. A significant positive correlation was found between environmental awareness and willingness to pay a premium (r = 0.45, p < 0.01). Multiple regression showed health consciousness (β = 0.28, p < 0.01) and environmental concern (β = 0.22, p < 0.05) as significant positive predictors and price sensitivity (β = −0.35, p < 0.001) as a significant negative predictor. Four qualitative themes emerged: health as a primary motivator, price as a major barrier, skepticism regarding greenwashing, and lack of availability and convenience.

Conclusion: Consumer demand for eco-friendly products in India is demonstrably increasing, driven by a growing awareness of environmental challenges and a rising concern for personal health. However, price sensitivity, skepticism towards greenwashing, and limited product availability continue to present significant barriers to widespread adoption. Addressing these multifaceted challenges through a combination of policy initiatives, business strategies, and consumer education programs is essential for fostering a more sustainable consumption pattern in India. The findings provide actionable insights for policymakers, businesses, and non-governmental organizations seeking to promote sustainable consumption practices.