Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market overview
- Organic food still cornerstone of green market, despite slowing growth
- Green building resilient in face of economic downturn
- Electronics make progress with recycling and energy-efficiency
- Auto industry in turmoil creates uncertain future for green cars
- Consumer services poised to take off
- Economic recession will force cut-backs all over
- Fluctuating energy prices add to uncertainty about green market
- Greening of U.S. consumers on hold
- Awareness and use of “green” consumer goods
- Under-35s lead in green shopping
- Education trumps income as a predictor of green shopping habits
- Reasons for buying green
- Willingness to pay for green products
Insights and Opportunities
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- Economic downturn translates to more focus on conservation
- Government initiatives will reshape the playing field for green business
- Tailored messages may succeed with different racial groups
- How do greens think?
- Niche demographics ripe for marketing attention
- Verification of green claims is challenging for consumers
Fast Forward Trends
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- Boom comes to an end
- Rethinking business, capitalism and consumerism
- Transparency
Market Size and Forecast
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- The U.S. Healthy Products, Healthy Planet Market
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- Figure 1: HP2 market size and forecast, at current prices, 2002-12
- Figure 2: HP2 market size and forecast, at inflation adjusted prices, 2002-12
Competitive Context
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- Concern about the environment continues to grow
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- Figure 3: General attitudes toward environmental concerns, October 2008
- Economic turmoil and expected government action lead to uncertainty
- Green companies likely to benefit from new regulations
- Health and safety concerns continue to buoy green market
- Wal-Mart: The elephant in the room
Segment Performance
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- Key points
- The natural products marketplace
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- Figure 4: Sales of natural products through conventional FDM and natural supermarkets segmented by product type, 2006 and 2008
Segment Performance—Food and Beverage
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- Key points
- Organic food still cornerstone of green market, despite slowing growth
- Natural and local compete with organic in green food marketplace
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- Figure 5: Sales of natural food and drink products through conventional FDM and natural supermarkets, at current and constant prices, 2005-08
Segment Performance—Personal Care
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- Key points
- Natural and organic personal care continues to outperform personal care market
Segment Performance—Household Cleaning Products
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- Key points
- Green cleaning market bolstered by growth of budget-priced product lines
Segment Performance—Clothing and Linens
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- Key points
- Green clothing and shoes likely to suffer from reduced discretionary spending
Segment Performance—Building, Building Materials and Home Improvement Supplies
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- Key points
- Green building resilient in face of economic downturn
- Government initiatives and wider availability drive growth of green building
Segment Performance—Electronics and Appliances
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- Key points
- Electronics make progress with recycling and energy-efficiency
Segment Performance—Cars and Trucks
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- Key points
- Auto industry in turmoil creates uncertain future for green cars
Segment Performance—Consumer Services
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- Key points
- Consumer services poised to take off
- Insurance and banking go green
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- Figure 6: Attitudes toward paperless checking accounts, by age, October 2008
- Cleaning up by going green
- Realtors
- Hotels and travel
- Funerals
Market Drivers
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- Economic recession will force cut-backs all over
- Green capital dries up
- Fluctuating energy prices add to uncertainty about green market
- Key green demographics are among the fastest growing U.S. populations
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- Figure 7: Population by race and Hispanic origin, 2003-13
The People
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- Greening of U.S. consumers on hold
- Key points
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- Figure 8: Change in frequency of green consumer population, August 2006-October 2008
Awareness and Use of Green Consumer Goods
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- Key points
- Use of green household consumables
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- Figure 9: Incidence of purchasing of green products in select household and personal care categories, December 2007-October 2008
- Awareness of green household consumables
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- Figure 10: Incidence of being unfamiliar with different categories of green products, December 2007-October 2008
- Use of green durable and infrequently purchased consumer products
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- Figure 11: Influence of green factors on major purchases, by category, October 2008
- Use of green consumer services
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- Figure 12: Influence of green factors on purchases of consumer services, by category, October 2008
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- Figure 13: Current use of green consumer services, by age, October 2008
The Influence of Age on Green Attitudes and Behaviors
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- Key points
- Age and the online population
- Green categories by age
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- Figure 14: Frequency of buying green products, by age, October 2008
- Interest in conservation tends to increase with age
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- Figure 15: Environmental attitudes, by age, April 2007-June 2008
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- Figure 16: Environmental behaviors, by age, October 2008
- Seniors lead in local shopping
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- Figure 17: Commitment to purchasing local products, by age, October 2008
The Impact of Household Income
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- Key points
- Greener attitudes don’t lead to greener buying for high income consumers
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- Figure 18: Environmental attitudes, by household income, April 2007-June 2008
Race and Hispanic Origin
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- Key points
- Online Asians and Hispanics lead in green shopping
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- Figure 19: Frequency of buying green products, by race/Hispanic origin, October 2008
- Attitudes toward recycling and pollution
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- Figure 20: Environmental attitudes and behavior, by race/Hispanic origin, April 2007-June 2008
- Looking forward, green factors to play a larger role
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- Figure 21: Influence of green factors on infrequent and major purchases, by race/Hispanic origin, December 2007
The Impact of Education
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- Key point
- College grads have strong environmental ethic
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- Figure 22: Environmental attitudes, by education level, April 2007-June 2008
How do Greens Think?
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- Key points
- Green and healthy lifestyles overlap for many consumers
- The power of packaging
- Care for the planet a priority for spiritual people
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- Figure 23: Environmental attitudes, by personality traits, May 2006-June 2007
Reasons for Buying or Not Buying Green
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- Key points
- Effectiveness/quality
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- Figure 24: Attitudes toward effectiveness of green products, by household income, October 2008
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- Figure 25: Attitudes toward effectiveness of green products, by race/Hispanic origin, October 2008
- Health, safety and savings drive many green purchases
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- Figure 26: Attitudes toward health benefits of green products, by gender, October 2008
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- Figure 27: Main reasons for green shopping, by gender, October 2008
- Availability
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- Figure 28: Consumer experience with the availability of green products, December 2007-October 2008
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- Figure 29: Consumer experience with the availability of green products, by age, October 2008
- Will consumers pay more for green and energy-efficient products?
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- Figure 30: Attitudes toward the cost of green products, by age, October 2008
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- Figure 31: Attitudes toward the cost of green products, by race/Hispanic origin, October 2008
- What is an acceptable premium for green products?
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- Figure 32: Willingness to pay extra for green products, by age, October 2008
- Willingness to pay is shaped more by race and lifestyle than by income
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- Figure 33: Willingness to pay extra for green products, by HH income, race/Hispanic origin, presence of children, and type of green consumer, October 2008
How Do We Know It’s Really Green?
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- Key points
- Consumers have faith in the power of shopping, but not in green marketing claims
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- Figure 34: Attitudes toward the effectiveness of green shopping, by race/Hispanic origin, December 2007 and October 2008
- Verification of green claims is challenging for consumers
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- Figure 35: Beliefs about verifying and trusting green product claims, by type of green consumer, October 2008
- Primary shoppers especially skeptical of green claims
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- Figure 36: Beliefs about verifying and trusting green product claims, by primary shopper status, October 2008
Cluster Analysis
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- The Green and Clear
- Who they are
- Opportunity
- Green Savers
- Who they are
- Opportunity
- Econo-Greens
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 37: Green living clusters, October 2008
- Figure 38: Frequency of buying “green” products, by green living clusters, October 2008
- Figure 39: Frequency of buying “green” products or services (I always or usually buy “green”), by green living clusters, October 2008
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- Figure 40: Awareness of “green” products or services (I have not seen any “green” products of this type), by green living clusters, October 2008
- Figure 41: Impact of “green-ness” on purchasing decisions (Currently consider “green-ness” of service provider), by green living clusters, October 2008
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- Figure 42: Attitudes about “green” products, by green living clusters, October 2008
- Figure 43: Attitudes about green products, by green living clusters, October 2008
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- Figure 44: Amount extra willing to spend to purchase a “green” product instead of a comparable traditional product, by green living clusters, October 2008
- Figure 45: Attitudes about green-ness, by green living clusters, October 2008
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- Figure 46: Attitudes about companies that claim to be green, by green living clusters, October 2008
- Cluster demographics
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- Figure 47: Green living clusters, by gender, October 2008
- Figure 48: Green living clusters, by age group, October 2008
- Figure 49: Green living clusters by income group, October 2008
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- Figure 50: Green living clusters, by race, October 2008
- Figure 51: Green living clusters, by Hispanic origin, October 2008
- Cluster methodology
Custom Consumer Groups
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- Focus on dads and young men
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- Figure 52: Frequency of buying green products, by dads, men without children and men, by age group, October 2008
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- Figure 53: Beliefs about verifying and trusting green product claims, by dads, men without children and men, by age group, October 2008
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- Figure 54: Willingness to pay extra for green products, by dads, men without children and men, by age group, October 2008
- A closer look at green Hispanics
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- Figure 55: Frequency of buying and willingness to pay extra for green products, by high and low income Hispanics and non-Hispanics, October 2008
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- Figure 56: Frequency of buying and willingness to pay extra for green products, by older and younger Hispanics and non-Hispanics, October 2008
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- Figure 57: Methods of seeking out green products, by high and low income Hispanics and older and younger Hispanics, October 2008
Appendix: Other Useful Consumer Tables
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- Usage
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- Figure 58: Incidence of purchasing different categories of green products, by degree of “green,” October 2008
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- Figure 59: Current use of selected green consumer services, by race/Hispanic origin, October 2008
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- Figure 60: Interest in selected green consumer services, by presence of children in the household, October 2008
- Environmental attitudes by demographic
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- Figure 61: Environmental attitudes, by green consumer type, October 2008
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- Figure 62: Environmental attitudes of primary shoppers, October 2008
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- Figure 63: Environmental attitudes, by presence of children in the household, April 2007-June 2008
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- Figure 64: Environmental shopping behaviors, by presence of children in the household, October 2008
- Availability of green products
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- Figure 65: Consumer experience with the availability of green products, by green consumer type, October 2008
- Reasons for buying or not buying green
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- Figure 66: Attitudes toward effectiveness of green products, by type of green consumer, October 2008
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- Figure 67: Main reasons for green shopping, by green consumer type, October 2008
Appendix: Trade Associations
Appendix: Healthy Products, Healthy Planet (HP2)
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- Consumer products
Appendix: Natural Products Marketplace Definition
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- Natural products
- Body care
- Frozen and refrigerated
- General merchandise
- Grocery
- Packaged produce
- Refrigerated
- Vitamins & supplements, herbs & homeopathic
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