Growing environmental awareness has encouraged FMCG companies to adopt sustainability-based marketing strategies; however, this has also led to the rise of greenwashing practices. Greenwashing, which involves misleading or exaggerated environmental claims, poses serious challenges to consumer trust, brand image, and customer retention. This study aims to examine the impact of greenwashing on brand image and customer retention in the FMCG sector. A mixed-method research design was adopted, with primary data collected from FMCG consumers through a structured questionnaire. Statistical tools such as descriptive statistics and ANOVA were used to analyze consumer perceptions, trust, and behavioral responses. The findings reveal that consumers are highly aware of greenwashing practices and perceive them as deceptive, leading to increased skepticism, reduced trust, negative brand image, and lower recommendation intentions. Although brand loyalty may not immediately decline, greenwashing significantly damages long-term brand credibility and reputation. The study emphasizes the need for transparency, genuine sustainability practices, and strict regulatory monitoring of environmental claims. The results provide valuable insights for marketers, brand managers, and policymakers to minimize greenwashing and foster long-term consumer trust and loyalty in the FMCG sector.

This study concludes that greenwashing has a strongly negative impact on consumer trust, brand credibility, ethical perception, and long-term brand loyalty in the FMCG sector. Consumers are highly aware of misleading environmental claims and largely agree that many brands exaggerate or lack transparency in their sustainability communication. While age and gender do not significantly influence perceptions of greenwashing, income levels play a meaningful role in shaping consumer reactions. The findings highlight the urgent need for authentic sustainability practices, transparent communication, and stricter regulatory oversight. Ultimately, brands that engage in genuine environmental responsibility are more likely to gain consumer trust, enhance reputation, and achieve sustainable competitive advantage, while those practicing greenwashing risk long-term damage to their brand image and customer relationships.

AlQahtani, A. (2025). Greenwashing and its effects on branding and consumer behavior. In R. Kumar & S. Lee (Eds.), Advances in Sustainable Consumer Research (pp. 78–95). Greenleaf Publishing. Rose, A. M., & Vengatesh, T. P. CHAPTER–54 COMPARATIVE REVIEW OF STATE-LEVEL IMPLEMENTATION VARIATIONS IN THE SANKALP SCHEME. Green Entrepreneurship Startups, 396. Novina Steffy, J., Sakthivel, R., & Subhashri, T. N. (2025). A study on investment behaviour of salaried people with special reference to Coimbatore city. International Journal of Scientific Research and Engineering Development, 8(1), 639–643. https://www.ijsred.com.ISSN: 2581-7175 Dr.B.Saranya, Selvi.P, (2024). Impact of shopping Malls on Small retail outlets- A study in Coimbatore city, Journal of the School Language, literature, and Culture studies, ISSN: 0972-9682, Book no.30.pg no: 57-66. https://doi.org/10.1525/cmr.2011.54.1.64 https://doi.org/10.1108/13522750510619733

© 2025 International Journal of Engineering and Techniques (IJET).

Digital Object Identifier (DOI)

IJET assigns a unique DOI to every accepted article via Zenodo for persistent linking and citation. Your article’s DOI: https://doi.org/{{doi}}

Open DOI About Zenodo DOI

Close