BCG Finds More UAE Consumers Willing To Go Green

Consumer Habits

February 11, 2021, 7:21 am

With less than 250 days to the start of EXPO 2020 public awareness concerning the mounting challenges stemming from global warming is reassuringly high in the UAE as the government, organizations, and civil society continue to play their part in embracing environmental sustainability initiatives. Despite significant efforts by all those involved consumers still face obstacles preventing them from translating their concerns into action via eco-friendly practices, according to a new report by Boston Consulting Group (BCG).

 

“Because demand for sustainable goods and services have increased, companies in UAE would experience potential growth opportunities if they adapted their go-to-market strategies to more effectively cater to customers changing demands, specifically better options, more accessible price points, and better promotion of the benefits of sustainability.”

 

The report, titled ‘Are Consumers in the Gulf States Ready to Go Green?’, stresses that while 65 percent of UAE consumers have reaffirmed their preparedness to incorporate more sustainable actions into their daily lives, green infrastructure, financial incentives, and a greater selection of affordable eco-friendly goods and services would assist in accelerating change.

The report’s findings highlight that 81% of UAE consumers are largely aware of climate change and how the issue negatively affects the environment – a figure that shows the UAE to outperform the rest of the GCC in terms of awareness. 65% percent of consumers with knowledge of the implications also perceive it to have a negative impact on the global environment, with 36% percent already believing that climate change is having a significant influence on personal lives, and around three-quarters anticipating it will impact future generations.

“Climate change concerns in the UAE have increased due to greater access to information and successful government and corporate-backed initiatives, most notably the UAE Vision 2021 and the inclusion of sustainability in EXPO 2020,” said Simon Birkebaek, Partner at BCG Middle East. “If public and private sectors were to do even more to facilitate awareness initiatives, encourage green infrastructure investments, and offer a wider choice of affordable eco-friendly goods and services then more people will choose to pursue even more sustainable lifestyles.”

Despite the high willingness of UAE consumers to live more sustainably, the primary challenge is to translate these climate concerns into action. For example, the UAE recycles, reuses, and recovers approximately 20% of waste produced at present – significantly higher than many other member GCC states – while electric vehicles are also relatively scarce. Therefore, understanding the perceived obstacles for consumers to take action is important in advancing the green agenda.

“Public concerns around climate and sustainability do bode well for the future,” said Cristiano Rizzi, Managing Director and Partner, BCG Middle East. “Many people believe that environmentally sustainable lifestyles will play a bigger role in the future, and an encouraging number of people wish to make– or are making – progress with eco-friendly behavior and purchases. The UAE is ideally placed to develop as an eco-tourist destination and we expect the hospitality sector to benefit from those efforts over the next decade .

“Several challenges remain, and today, there are growing calls for more recycling and renewable energy information, as well as guidance on how to live more sustainably and reduce energy consumption. At the same time, people also want to see more investment geared towards sustainable infrastructure – particularly in recycling, renewable energy, public transportation, and eco-tourism.

“Because demand for sustainable goods and services have increased, companies in UAE would experience potential growth opportunities if they adapted their go-to-market strategies to more effectively cater to customers changing demands, specifically better options, more accessible price points, and better promotion of the benefits of sustainability.”

When it comes to a more sustainable lifestyle consumers do not always perceive higher prices as being adequately reflected in greater quality or better experiences.

Other barriers to sustainable lifestyles include, insufficient information, limited access to opportunities, limited range, social pressure to maintain current lifestyles, and the concerns that eco-friendly products lack quality and downgrade lifestyles.

Although Governments have done much to encourage recycling 40% of consumers still believe it is a cumbersome practice. Consequently, further investment in infrastructure, regulations, and information on how to recycle correctly will be needed if the pace of change is to increase.

The public’s reluctance to embrace electric vehicles is based around high purchase prices, operating costs, and a lack of charging infrastructure – 60% cite electric vehicles as being too expensive and 46% expressed the opinion that operating costs are too high.

In terms of eco-friendly touristic destinations, something that the UAE  is keen to explore the perceived higher costs, long travel distances, and lack of access to luxurious amenities, entertainment, and shopping are of concern to travelers with 33% pointing to the lack of amenities as an issue.