A Shift Towards Sustainable Living

Mina, a working mother in Dhaka, carefully chooses meals for her family, wanting quality as well as cost. She knows her purchases have an environmental impact but, more often than not, finds eco-friendly products more expensive. Like many other shoppers, she wonders why making conscientious purchasing selections often comes at a premium. This dilemma illuminates a central challenge for FMCG companies: how to provide products that are sustainable to customers outside of wealthier segments at price points that are feasible for them.

 Building a Business Case for Sustainable Affordability

Sustainability is no longer simply a corporate responsibility but a business imperative. Consumers today are more aware of their purchase decisions, and whilst environmental impact is present, cost is also a big factor. Sustainable products are often thought to be expensive and out of reach for many people. FMCG companies need to make sustainability a significant part of their business plans while ensuring that their product charges don’t go upward because this dissuades consumers from buying a product.

Brands might balance the emphasis on sustainability, using local and/or cheap resources and developing low-cost green technologies with affordability. However, Businesses that win at sustainability and cost-effectiveness will gain a competitive edge and lasting consumer loyalty.

 Global Leaders in Sustainable FMCG Strategies

Some multinational FMCG companies have demonstrated how sustainability and affordability can coexist:

• Unilever has launched reusable pouches for its Lifebuoy and Sunlight branded products as part of its Sustainable Living Plan, reducing plastic waste and offering affordable options.
• Procter & Gamble (P&G) introduced low-temperature washing detergents for its Tide and Ariel brands to help consumers conserve electricity and save money.
• Nestlé promoted recyclable packaging and sustainable sourcing (Nescafé refill packets) to make sustainability more attainable.
• PepsiCo, under its “PepsiCo Positive” strategy, strives towards sustainable agriculture and packaging, making sustainability the standard instead of a luxury

Bangladesh’s FMCG Brands Taking Action

We have seen that if sustainability policies are effectively implemented, they can lead to financial benefits for businesses and consumers, something that Bangladesh’s FMCG brands have proved. The corporate world is increasingly looking at sustainability, and some brands are blending eco-friendly processes while being cost-effective for consumers of leading Bangladeshi FMCG companies. PRAN-RFL Group, one of the country’s leading FMCGs, has been using sustainable packaging for its noodles while integrating solar power into its factories, bringing down both total expenses and carbon footprint considerably. PRAN-RFL is also investing in energy-efficient manufacturing techniques, balancing sustainability and affordability.

Many other Bangladeshi firms besides PRAN-RFL have received honours from Bloomberg’s Sustainability Index in recognition of their sustainability activities. Grameenphone, Square Pharmaceuticals, Walton, Brac Bank and IDLC Finance are some of the first companies to embrace green initiatives across their industries. Grameenphone, a pioneering company in corporate sustainability, continues to equip energy-efficient resources and has set a stepping stone towards lowering carbon emissions. Walton has focused on energy-efficient appliances to benefit consumers and the planet. Square Pharmaceuticals has developed sustainable production systems. Together, these enterprises are setting a precedent for how Bangladeshi enterprises can incorporate sustainability into their growth strategies while also making environmental products and services accessible to a wider population.

Strategic Framework for Affordable Sustainability

A stepwise course should be adopted for inexpensive sustainability by the FMCGs. Focus on cost-efficiency, the involvement of consumers and innovation. Five Key Strategic Pillars are below:

1. Supply Chain Optimisation: Efficiency in the supply chain is key to making sustainability cost-effective.”

• Sourcing locally: Companies can do this locally, leading to less transportation costs, more money spent in local economies and smaller carbon footprints.
• Optimising production processes: Improving production via lean manufacturing and energy-efficient technology to reduce waste and costs.
• Investing in circular economies: Circular economy investment includes recycling and reuse solutions to keep the cost of raw materials low.

2. Affordable Green Innovation: To make sustainable products more affordable requires innovative thinking.

• Leverage alternative materials: Alternative materials could be used by FMCG brands. Brands may opt for environmentally friendly and cost-effective packaging solutions that can be reused or recycled.
• Develop refillable and reusable product lines: Advocate for refillable and reusable packaging and find long-term cost savings.
• Create energy-efficient formulations: Keep in mind the importance of developing low-energy detergents or concentrated formulae that still serve cost-effective purposes while reducing resource use.

3. Awareness and Engagement of Consumers: Shifting consumer perceptions is key to driving demand for affordable, environmentally friendly products.

• Educate consumers: Brands need to take time to educate consumers on the long-term potential financial savings by making sustainable choices through narrative and transparent communication.
• Promote local success stories: Share local success stories as emotional hooks for sustainable products.
• Leverage digital platforms: Leverage digital platforms to communicate your affordability and sustainability.

1. Smart Pricing and Incentive: High costs also discouraged many consumers from switching to sustainable alternatives.

• Offering competitive pricing: To combat this, businesses could present realistic retail prices as they might for traditional goods.
• Implementing reward programs: Reward programs that encourage people to pursue eco-friendly options.
• Providing bundled discounts: Discount incentives for those buying sustainable products in bulk.

5. Collaborate and Advocate for Policy: The private sector on its own will not be able to push forward sustainable affordability; it has to work in cooperation with other stakeholders, including governments, non-governmental organisations and financial institutions.

• Engage in public-private partnerships: Brands can also promote sustainable production through public-private partnerships and pursue regulations that favor market-winning green choices.
• Advocate for regulatory support: to ensure sustainability policies favor cost-effective green alternatives.
• Collaborate with sustainability-focused organisations: to drive large-scale consumer adoption of eco-friendly products.

The Future of Affordable Sustainability in FMCG

A unique transformational urgency can be found in the FMCG category to show how sustainability can be the popular choice and the economically sensible one too. Although luxury green products will always be a thing, it will really matter when green solutions come down to the everyday consumer level.

Brands can particularly turn the message around from “eco-friendly is costly” to “sustainability is good business” through the adoption of strategic sustainability programs aimed at cost efficiency.

It could be a hopeful future for Mina and millions of other shoppers. Brands that manage to make sustainability affordable will not only help the planet but also earn the long-term trust of consumers and grow their businesses. The future must lie in reconciling commercial progression with ecological accountability, and sustainability must not just be a luxury prerogative but a mainstream mantra.

Author:

A.K.M. Moinul Islam (Moin)

Deputy Managing Director

PRAN Group