Estimated at over $200 billion in 2006, the green marketplace is growing. As examples, sales of natural and organic retailer Whole Foods Market continue to rise; the documentary on global warming, An Inconvenient Truth, met with unexpected popularity; and pioneering jeans maker Levi Straus introduced a new line of organic jeans—all indicating a move towards green living that is picking up steam. In fact Newsweek’s July 17, 2006, issue proclaimed it loud and clear with a cover titled, “The Greening of America: From Politics to Lifestyle, Why Saving the Environment is Suddenly Hot.”

Green living is most simply defined as a lifestyle that minimizes negative impact, and whenever possible, increases positive impact on the environment. Misconceptions about green products—which use less energy, provide cleaner air and water, and protect the environment—and the people who purchase them are common. The green marketplace is more than organic, natural and recycled products. It includes a wide range of consumer goods, appliances, automobiles and even new homes, as well as industrial supplies and services, and raw materials. Mintel examines the diverse range of green products and the many “shades” of green consumers purchasing them.

Additionally this report addresses three consumer areas that offer a key to understanding future trends—natural and organic products, green cleaning supplies and general merchandise, and green homebuilding. Though varied in their success, these three segments exemplify the challenges and opportunities in the green marketplace. For example, while natural and organic products have succeeded in capturing mainstream consumers and distribution, green homebuilding and home supplies, driven by the benefits of energy efficiency as well as improved health and comfort, are just beginning to capture consumers’ attention and offer benefits that more than offset the costs.

As noted by William K. Reilly, former chief of the U.S. Environmental Protection Agency (EPA), America is in a new climate of “more environmentally sensitive business…It’s not enough to refrain from damaging the environment, or to be in compliance with environmental laws. The consumer wants to see environmental benefits in the products.” In this report, Mintel explores the trends that are behind, and will be impacted by, this statement.