Green Living - US - September 2006

INTRODUCTION AND ABBREVIATIONS
Introduction
Definition
Abbreviations and Terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The green movement is growing
Habits, desire at odds with green values
Cultural creatives form green consumer base
Core use remains low
Growth of natural and organic foods
Sharp increase in energy prices makes green options more cost effective
Global warming concerns grow
Rise of green home building
Wal-Mart’s green pledge
Corporations use environmental commitments to their advantage
The future of green—new products from old sources
MARKET DRIVERS
A snapshot of consumer behavior
Figure 1: Products purchased by respondents, September 2006
Going green makes money
A green image is a good image
Going green saves money
Figure 2: Changes in fuel and electricity prices, indexed, 2000-06
Taste, health, and the environment: the lure of organics
Rise in allergies and asthma are pressing concerns
Better for the environment, but willingness to pay for it still limited
Poor air quality and sick building syndrome
Figure 3: Ten worst cities in the U.S. for smog and particle pollution, 2005
Pollution, volatile organic, and other toxins raise concerns
Global warming concerns grow
Green is hip
The fashion world goes green
The rise of the Cultural Creative, LOHAS, and the environmentally conscious
Green practices
Figure 4: Incidence of green practices or purchases, enlightened consumers, July/August 2005
Turning beliefs into action
Figure 5: Incidence of charitable contributions, January-September 2005
Figure 6: Incidence of charitable contributions, by household income, January-September 2005
The Green Festival
Local government initiatives drive awareness
Focus: Chicago
Focus: San Francisco
Other cities
MARKET PERSPECTIVE
Overview
LOHAS marketplace
Figure 7: Lifestyles of health and sustainability marketplace, by segment, 2000
Healthy Products, Healthy Planet (HP2) marketplace
Figure 8: Sales of healthy product, healthy planet marketplace, by segment, 2002-03
MARKET TRENDS
Participation in core green segments remains low
Figure 9: Enlightened consumers’ usage of natural & organic foods, 2005
Figure 10: Enlightened consumers’ usage of natural and organic personal care and household products, 2005
Lack of labelling rules leads to consumer confusion
Green washing
“Living green is too expensive”
Figure 11: Opinions about expense of green living, agree summary, August 2006
Consumers unsure about availability of green products
Figure 12: Opinions about availability of green products, agree summary, August 2006
Wal-Mart goes green
Technology spurs innovation and performance
“If it’s green, it can’t clean”
Figure 13: New laundry product introductions, 2000-06
 NEW PRODUCTS
Figure 14: Number of green new product introductions, by category and year, 2000-2005
Figure 15: Number of green new product introductions, by category and year, 2000-05
MARKET SEGMENTATION
 NATURAL AND ORGANIC FOODS AND PERSONAL CARE
The progression of green shopping
Figure 16: Adoption pathways of organic food shoppers, 2006
Sales overview
Figure 17: Sales of natural organic foods and personal care, by product type, 2003 and 2005
Organic growth suggests trends for other green products
 HOUSEHOLD PAPER AND CLEANING SUPPLIES
Recycled household paper products
Figure 18: Natural product supermarket retail sales of recycled paper products, at current and constant prices, 2003-05
Green cleaning product penetration low
Figure 19: Natural products supermarket sales of cleaning products 2003-05
The link between green eating and green cleaning hasn’t been made
 GREEN HOMEBUILDING
Green building surges
Homebuyers need to know why they should buy green
Consumers willing to pay more for green means higher profits for manufacturers
Growth of the green home improvement center
Building green does not have to break budgets
ENERGY STAR program raises consumer awareness of green appliances
THE CONSUMER
 MANY SHADES OF GREEN
Figure 20: Frequency of buying green products, August 2006
Figure 21: Green consumer groups as a share of total U.S. population, 2005
Figure 22: Frequency of buying green products, by age, August 2006
Figure 23: Frequency of buying green products, by household income, August 2006
Figure 24: Frequency of buying green products, by race/ethnicity, August 2006
 AWARENESS OF GREEN PRODUCTS
More than half of respondents have sought out recycled products
Figure 25: Green product labels sought, by green consumer type, August 2006
Figure 26: Green product labels sought, by household income, August 2006
Figure 27: Green product labels sought, by race/ethnicity, August 2006
Figure 28: Green product labels sought, by region, August 2006
Household paper products lead green product purchases
Figure 29: Awareness and purchase of green products, summary, August 2006
Figure 30: Green products bought, by green consumer type, August 2006
Figure 31: Green products bought, by age, August 2006
Figure 32: Green categories respondents are not aware of, by green consumer type, August 2006
Green brand awareness
Green household paper brands
Figure 33: Awareness and purchase of green household paper brands, summary, August 2006
Figure 34: Green household paper brands bought, by green consumer type, August 2006
Green dishwashing brands
Figure 35: Awareness and purchase of green dishwashing brands, summary, August 2006
Figure 36: Green dishwashing brands bought, by green consumer type, August 2006
Green laundry detergent brands
Figure 37: Awareness and purchase of green laundry detergent brands, summary, August 2006
Figure 38: Green laundry detergent brands bought, by green consumer type, August 2006
Green bath/kitchen cleaner brands
Figure 39: Awareness and purchase of green bath/kitchen cleaners, summary, August 2006
Figure 40: Green bath/kitchen cleaners bought, by green consumer type, August 2006
 RECYCLING
Newspapers, metal cans and plastic bottles most frequently recycled
Figure 41: Frequency of recycling, by type of product recycled, January-September 2005
Majority of respondents consider themselves recyclers
Figure 42: Attitudes towards recycling and social responsibility, agree summary, January-September 2005
Figure 43: Attitudes towards recycling and social responsibility, by age, January-September 2005
Figure 44: Attitudes towards recycling and social responsibility, by gender, January-September 2005
Figure 45: Attitudes towards recycling and social responsibility, by race/ethnicity, January-September 2005
Figure 46: Attitudes towards recycling and social responsibility, by household income, January-September 2005
Figure 47: Attitudes towards recycling and social responsibility, by region, January-September 2005
 ATTITUDES TOWARDS GREEN LIVING
Cost a barrier to buying green
Figure 48: Attitudes towards green living, by green consumer type, August 2006
Figure 49: Attitudes towards green living, by gender, August 2006
Figure 50: Attitudes towards green living, by age, August 2006
Mean summary
Figure 51: Attitudes towards green living, mean summary, August 2006
FUTURE AND FORECAST
 FUTURE TRENDS
Education is key
Consumers explore new automotive options
Car sharing
Organic cotton and other sustainable alternatives enter the mainstream
Determining your carbon footprint
Green burials
Beyond Kyoto
More companies will go green
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: NEW PRODUCT BRIEFS
 BIODEGRADABLE
Product Variants
 ORGANIC AND ALL NATURAL
 DONATE TO ENVIRONMENTAL CAUSES
Additional Product Images
APPENDIX: ADDITIONAL CONSUMER RESEARCH
Figure 52: Attitudes towards green living, mean summary, by age, August 2006
Figure 53: Attitudes towards green living, mean summary, by household income, August 2006