Do eco-labels influence the purchase decisions of consumers in Indonesia?

Eco-labels help businesses communicate the environmental credentials of their products. In an earlier article, we explored public awareness of such green marks in Indonesia.

But to what extent do eco-labels influence the purchase decisions of consumers in Indonesia? Are consumers willing to switch brands or pay more for eco-labelled products?

What eco-labelled products are consumers in Indonesia most likely to currently purchase?

YouGov polled consumers in Indonesia 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, over two in five consumers (43%) say they mainly purchase eco-labelled coffee/tea (43%) and rice (40%), while more than one-third mainly purchase eco-labelled bath soaps/oral care products (35%) and milk (34%).

Additionally, over one-quarter of consumers mainly purchase eco-labelled flour (28%) and cosmetics/makeup/skincare products (26%), while around one in five presently do for home furniture (22%) and clothing items (18%).

Notably, about one-fifth of (21%) 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 Indonesia to switch brands and pay more for various eco-labelled products?

YouGov also polled consumers in Indonesia 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-third of consumers are open to switching the brand of rice (34%), coffee/tea (33%) and milk (33%) they currently purchase in order to buy an eco-labelled one. While slightly more are willing to pay more for eco-labelled rice (35%), slightly less would for coffee/tea (30%) and milk (30%).

Meanwhile, over one-quarter would consider changing their current brand of flour (27%) to an eco-labelled one, while 22% are keen on paying a higher price for this (5% less).

When asked about household appliances and furniture products, more than one-quarter are open to switching their current brand of home furniture (29%) in order to buy an eco-labelled one, while just under a quarter (24%) are willing to pay more. But less than one in five consumers would consider switching brands and paying more for eco-labelled washing machines (18-19%) and televisions (17%).

When asked about personal electronics and automobile products, one-quarter of consumers (25%) are open to switching the brands of smartphones they currently purchase to buy an eco-labelled one, while slightly more (27%) are willing to pay a higher price for greener smartphones. But less than one in seven consumers would consider switching brands and paying more for eco-labelled cars (14%) and gaming consoles (5-6%).

When asked about fashion and personal care products, around one-third of consumers are open to changing their brand of bath soaps and oral care (36%) and cosmetics, makeup and skincare (33%) for eco-labelled versions, while around the same number are willing to pay a higher price to go green.

Meanwhile, about one-fifth would consider switching brands and paying more for eco-labelled clothing, but less than one in seven would for eco-labelled footwear.

Additionally, as of April 2022, 12% of consumers in Indonesia would not switch brands to buy eco-labelled versions for any of the above products, while 14% 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 Indonesia 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 more than 50% higher prices for eco-labelled versions of the above products, except for gaming consoles (where only 48% would). Additionally, a larger proportion of consumers are willing to accept more than 80% higher prices for eco-labelled food items (milk, rice, coffee, tea), compared to other product categories. In contrast, at least one-fifth of consumers who would pay more for eco-labelled fashion and personal care products (cosmetics/makeup/skincare, clothing items, bath soaps/oral care, footwear) are only willing to accept higher prices of 10% or less.

Eco-labels in Indonesia: 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 13 April 2022, with a nationally representative sample of 2,158 adults in Indonesia (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by gender, age, socioeconomic class, city tier to be representative of the adult online population in Indonesia (18 years or older), and reflect the latest Indonesian Bureau of Statistics (BPS) population estimates. Learn more about YouGov RealTime Omnibus.