Industry Context & Rising Sustainability Expectations
India’s consumer goods sector, particularly fast-moving consumer goods (FMCG), is undergoing a transformative shift driven by escalating sustainability expectations. Consumers, especially in urban centres, are increasingly prioritising eco-friendly products, with a 2022 Rakuten Insight survey revealing that 69% of Indian consumers are willing to pay a premium for sustainable goods. Rural markets are also showing growing awareness, with 92% preferring locally sourced products perceived as environmentally responsible. This reflects a broader consumer demand for brands that align with ethical and environmental values.
Regulatory bodies like the Central Pollution Control Board (CPCB) and the Food Safety and Standards Authority of India (FSSAI) are enforcing stringent Environmental, Social, and Governance (ESG) frameworks, mandating sustainable practices in sourcing, packaging, and waste management. Failure to meet these sustainability expectations poses significant risks: reputational damage, consumer boycotts, hefty fines, and loss of market share to agile, eco-conscious competitors. BCG notes that FMCG companies embedding sustainability into their go-to-market (GTM) strategies can build loyalty and unlock new revenue streams by optimising resource use.
Recent Developments Shaping Sustainability Expectations (as of June 2025)
Several developments in 2025 underscore the urgency of aligning GTM strategies with sustainability expectations:
- Expanded EPR Mandates: The CPCB and FSSAI have strengthened Extended Producer Responsibility (EPR) regulations, requiring consumer goods brands to manage post-consumer waste, particularly plastic packaging, pushing companies to rethink product design and supply chains.
- Budget 2025 Incentives: The government has introduced incentives for green MSMEs, including import duty waivers for eco-friendly materials, fostering innovation in sustainable consumer goods.
- Investor Preferences: Private equity and venture capital (PE/VC) firms are prioritising sustainable product portfolios, viewing them as lower-risk investments with higher long-term returns.
- Consumer Shifts: McKinsey reports that 15% of Indian consumers switched grocery stores during the pandemic, creating opportunities for brands to capture loyalty through sustainability-focused GTM strategies. A growing segment is willing to pay premiums for ethical, eco-conscious brands.
These trends highlight the need for consumer goods brands to integrate sustainability expectations into their core strategies.
1. Strategic Challenges in GTM Alignment
- Aligning GTM strategies with sustainability expectations presents several challenges:
- Inconsistent Supply of Sustainable Raw Materials: Limited supplier networks and fluctuating availability of biodegradable or recycled materials complicate product development.
- Consumer Price Sensitivity: While 44% of consumers are open to paying a green premium, price sensitivity in mass-market segments limits adoption of eco-friendly products.
- Credible Communication: Greenwashing risks eroding trust. Brands must communicate sustainability efforts authentically, with transparency in sourcing and environmental impact.
- Eco-Friendly Packaging and Logistics: Scaling sustainable packaging and reducing last-mile emissions require significant investment in infrastructure and green logistics.
These challenges demand a strategic overhaul of GTM frameworks to balance profitability with sustainability expectations.
2. GTM Strategy to Align with Sustainability Expectations
To meet rising sustainability expectations, consumer goods brands must reimagine their GTM strategies across five key pillars and integrate legal-tech frameworks for sustainable compliance.
- Product Design: Building Eco-Friendly Foundations
Incorporate biodegradable, refillable, or upcycled materials into product development. For example, using recycled PET or plant-based packaging reduces environmental impact. Technologies like 3D printing and IoT can optimise material use, aligning with consumer demands for eco-friendly products.
- Pricing & Positioning: Making Sustainability Affordable
Bundle sustainability with value messaging to justify green premiums. Highlight cost savings from refills or durable goods. Test price elasticity across urban and rural segments to identify optimal pricing. For instance, premiumisation strategies, like those used by Nescafe Gold with sustainable sourcing, enhance brand image and loyalty.
- Channel Strategy: Using D2C and Retail Synergies
Direct-to-consumer (D2C) platforms enable storytelling around sustainability metrics, such as carbon footprints or water savings. In-store, use QR codes or AR displays to showcase eco-friendly attributes. Partnerships with e-commerce platforms like Nykaa, which prioritise sustainability, can amplify reach and engagement.
- Promotion: Communicating Sustainability Expectations
Leverage green marketing through transparent eco-labelling and influencer-led campaigns. Partner with platforms like the Consumer Goods Forum to highlight CSR efforts. Use augmented reality (AR) for ingredient traceability, engaging tech-savvy consumers. Cause-related marketing tied to environmental protection can further resonate with audiences.
- Place & Distribution: Greening the Last Mile
Partner with green logistics providers to reduce emissions and establish reverse logistics for packaging returns to comply with EPR mandates. Optimising routes and using electric vehicles can minimise last-mile impact, reinforcing commitment to sustainability expectations
3. Legal, Tech & Compliance Integration: Operationalising Sustainability Expectations
Meeting sustainability expectations requires robust legal, technological, and compliance frameworks:
- Regulatory Watch Systems: Establish systems to monitor CPCB, FSSAI, and GST updates related to sustainability. Legal teams must ensure compliance in product development and marketing to avoid penalties.
- Digital Compliance Tools: Use dashboards and blockchain for EPR compliance and supply chain traceability. Blockchain ensures immutable records of sustainable sourcing, building consumer trust.
- Verified Claims: Avoid greenwashing by using third-party certifications and clean labelling. Provide clear, verifiable information on packaging and marketing materials to meet consumer demands for transparency.
LawCrust, a leading legal-tech consultancy, can support brands in navigating these regulatory complexities, offering customised solutions for compliance and consumer trust.s, offering customised solutions for compliance and consumer trust.
llustrative GTM Examples
- Beverage Brand: A leading beverage company switched to 100% recycled PET bottles, integrating QR codes on packaging. Scanning reveals a webpage detailing recycling initiatives, plastic saved, and NGO partnerships, with AR features for ingredient traceability. This transparency directly addresses sustainability expectations, boosting consumer trust.
- Personal Care Brand: A personal care company launched a refillable packaging line via its D2C platform, targeting sustainability-conscious segments. By emphasising convenience, cost savings, and environmental benefits through personalised messaging and subscription models, the brand achieved a 2x conversion rate, demonstrating the business value of meeting sustainability expectations.
Conclusion
Adapting GTM strategies to meet sustainability expectations is a critical imperative for consumer goods brands in India. By integrating sustainable practices across product design, pricing, channels, promotion, and distribution, brands can align with consumer demands, comply with regulations, and attract investor interest. A forward-looking GTM approach not only mitigates risks but also unlocks growth, strengthens brand loyalty, and future-proofs businesses in India’s evolving consumer goods market.
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