Eco-labels help businesses communicate the environmental credentials of their products. In an earlier article, we explored public awareness of such green marks in Singapore.
But to what extent do eco-labels influence the purchase decisions of consumers in Singapore? Are consumers willing to switch brands or pay more for eco-labelled products?
What eco-labelled products are consumers in Singapore most likely to currently purchase?
YouGov polled consumers in Singapore about eco-labelled products which they typically purchase (specifically, products for which 50% or more of their current purchases are eco-labelled).
As of April 2022, around half (49%) of consumers say they mainly purchase eco-labelled washing machines, while almost one-third (30%) mainly purchase eco-labelled televisions.
Additionally, 13% of consumers mainly purchase eco-labelled coffee/tea and bath soaps/oral care products, while one in ten mainly purchase eco-labelled rice (11%) and smartphones (10%).
Notably, only 9% say they mainly purchase eco-labelled cosmetics/makeup/skincare products and clothing items, two product categories where eco-labels are becoming increasingly prominent, while just 5% mainly purchase eco-badged cars.
Significantly, one-third (33%) of consumers say they do not buy eco-labelled versions of any of the above products 50% or more of the time.
How likely are consumers in Singapore to switch brands and pay more for various eco-labelled products?
YouGov also polled consumers in Singapore about products for which they would consider a brand switch in order to buy an eco-labelled version – and separately, whether they would be prepared to pay more to do so.
When asked about food related items, around one-fifth of consumers are open to switching the brands of coffee/tea (20%) and rice (18%) they currently buy for an eco-labelled one, while around 4-5% less are willing to pay more for eco-labelled coffee/tea (15%) and rice (14%).
About one-sixth of consumers would consider a switch of milk (16%) and flour (14%) brands to an eco-labelled one, with around one in ten willing to pay more for eco-labelled milk (11%) and flour (10%).
When asked about household appliances and furniture products, almost two-fifths of consumers (39%) are open to switching their current brand of washing machine for an eco-labelled one, as well as almost one-third for televisions (32%). Additionally, more than one-third are willing to pay more for eco-labelled washing machines (36%), and more than one-quarter for televisions (28%).
About one in six consumers would consider changing the brand of home furniture (16%) they buy, to purchase an eco-labelled one, while one in seven (15%) are willing to pay more.
When asked about personal electronics and automobile products, about one-fifth of consumers (20%) are open to switching brand of smartphone to buy an eco-labelled one, with one-sixth (17%) willing to pay more.
One in seven (14%) would consider changing their brand of cars for an eco-labelled one, while one in eight (13%) are willing to pay a higher price. Meanwhile, just 6% are open to switching their brand of gaming console for an eco-labelled one, while 5% would consider paying more.
When asked about fashion and personal care products, about one-fifth of consumers (20%) are open to changing their brand of bath soaps and oral care for an eco-labelled one, with one-sixth (16%) also willing to pay a higher price to go green.
About one-sixth of consumers would consider a brand switch for cosmetics, makeup and skincare (17%) and clothing items (16%) in order to purchase an eco-labelled versions, while around 4-5% less are willing to pay more. Only one in eight (12%) are open to switching footwear brands to buy an eco-labelled pair, with 9% willing to pay more for this.
Notably, as of April 2022, about one-third (32%) of consumers in Singapore would not switch brands to buy eco-labelled versions for any of the above products, while more than two-fifths (42%) would not consider paying a higher price.
How much more are consumers presently willing to pay for eco-labelled products?
YouGov also asked consumers in Singapore who say they would consider paying a higher price for various eco-labelled products to indicate how much more they are willing to pay, by sliding a scale from 1% to 100%.
In general, most consumers are willing to accept higher prices of 30% or less for eco-labelled versions of the above products, except for milk and flour (where 57% and 52% respectively would accept more than 30% higher prices). Washing machines had the largest proportion of consumers willing to accept higher prices of 80% or more for an eco-labelled version (10%), while coffee/tea had the largest proportion of consumers willing to accept higher prices of only 10% or less for an eco-labelled version (51%).
Eco-labels in Singapore: how aware are consumers of these green marks? Read our earlier article here.
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Methodology: YouGov RealTime Omnibus provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 4 April 2022, with a nationally representative sample of 1,125 adults in Singapore (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by age, gender and ethnicity to be representative of all adults residing in Singapore (18 years or older) and reflect the latest Singapore Department of Statistics (DOS) estimates. Learn more about YouGov RealTime Omnibus.