Green Living - US - February 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Green market poised for renewed growth
Economic woes eclipse environmental concerns for stressed consumers
Green labels seek to cut though greenwashing, but confusion remains
Some segments stagnant, others still growing despite recession
Green tech trends spell progress for electronics and auto segments
Hospitality industries lead service providers in green efforts
Energy prices and government policy key drivers of green market
Outlook positive for green services and durable goods
INSIGHTS AND OPPORTUNITIES
Few cut back on green spending, despite recession
Asians and Hispanics are future of green market
Tailored messages will make green claims more convincing
Green products now seen as available and effective
Green attitudes don’t always translate into willingness to pay
INSPIRE INSIGHTS
Trend: Media Evolution
What's it about?
Trend Observation: App Helps Consumers Buy Local
Buy local, feel good
MARKET SIZE AND TRENDS
Key points
Measuring the green market
The U.S. Healthy Products, Healthy Planet Market
Figure 1: HP2 market size and forecast, at current and constant prices, 2004-14
COMPETITIVE CONTEXT
Concern about the environment recedes in the face of economic worries
Looming carbon policies a spur to action for business
Parents key to green marketplace
Green labels seek to cut though greenwashing, but confusion remains
SEGMENT PERFORMANCE
Key points
SEGMENT PERFORMANCE—FOOD AND BEVERAGE
Key points
Recession has slowed growth of natural food, but consumers stand by organic staples
Niche categories continue to grow even as consumers trade down to cut costs
Figure 2: U.S. FDMx and natural supermarket sales and forecast of natural/organic food and beverage, at inflation-adjusted prices, 2006-12
SEGMENT PERFORMANCE—PERSONAL CARE
Key points
Natural and organic personal care making greater gains than conventional
Figure 3: U.S. sales of natural and organic personal care products in FDMx and natural supermarkets, at inflation-adjusted prices, 2006-10
SEGMENT PERFORMANCE—BUILDING, BUILDING MATERIALS AND HOME IMPROVEMENT SUPPLIES
Key points
Green building defies trends in real estate market
Private sector dominates market, but government support remains a key driver
SEGMENT PERFORMANCE—ELECTRONICS
Key points
Innovation in green electronics continues despite recession regulation
SEGMENT PERFORMANCE—CARS AND TRUCKS
Key points
Fuel prices and government policy key drivers of green vehicle market
Range of fixes under development to boost fuel economy, with caveats
SEGMENT PERFORMANCE—RESTAURANTS, HOTELS AND HOSPITALITY
Key points
Restaurants find that green practices boost bottom lines, even in recession
Green practices trickle down to mid- and low-priced lodging, as customer demand grows
MARKET DRIVERS
Green market has not escaped the impacts of the recession
Figure 4: U.S. retail sales, 2005-09
Figure 5: U.S. retail sales, selected months, 2005-09
Energy prices key to green market
Government purchasing policy drives demand for green products
Demographic changes should benefit green market
Figure 6: Population, by race and Hispanic origin, 2004-14
GREEN MARKET STALLED BUT STABLE
Key points
Use of green household consumables down slightly
Figure 7: Change in frequency of purchasing different categories of green products, 2007-09
Awareness of green household consumables high
Figure 8: Percentage of people unfamiliar with different categories of green products, November 2009
Use of green durable and infrequently purchased consumer products
Figure 9: Influence of green factors on major purchases, by category, 2008 and 2009
Use of green consumer services
Figure 10: Influence of green factors on purchases of consumer services, by category, November 2009
Under-45s, Asians and Hispanics most interested in green services
Figure 11: Current use of green consumer services, by age, race, and Hispanic origin, November 2009
GREEN ATTITUDES AND BEHAVIORS BY DEMOGRAPHIC
Key points
Older consumers green but thrifty
Figure 12: Environmental attitudes and behaviors, by age, April 2008-June 2009
High-income consumers lighter green
Figure 13: Environmental attitudes and behaviors, by household income, April 2008-June 2009
Figure 14: Environmental attitudes and behavior, by mosaic segment, April 2008-June 2009
Figure 15: Environmental attitudes, by education level, April 2008-June 2009
Figure 16: Environmental behavior, by education level, April 2008-June 2009
RACE AND HISPANIC ORIGIN
Key points
Attitudes and behavior
Figure 17: Environmental attitudes and behavior, by race/Hispanic origin, April 2008-June 2009
Green shopping habits
Figure 18: Purchase of green household goods, by race/Hispanic origin, November 2009
Willingness to pay
Figure 19: Attitudes toward the cost of green products, by race/Hispanic origin, November 2009
REASONS FOR BUYING OR NOT BUYING GREEN
Key point
Effectiveness/quality
Figure 20: Attitudes toward effectiveness of green products, by age, November 2009
Figure 21: Attitudes toward effectiveness of green products, by household income, November 2009
Health, safety and savings drive many green purchases
Figure 22: Attitudes toward health benefits of green products, by gender, November 2009
Availability
Figure 23: Consumer experience with the availability of green products, by age, November 2009
WILLINGNESS TO PAY FOR GREEN PRODUCTS
Key points
Will consumers pay more for green and energy-efficient products?
Figure 24: Attitudes toward the cost of green products, by age, November 2009
What is an acceptable premium for green products?
Figure 25: Willingness to pay extra for green products, by age, November 2009
Willingness to pay is shaped more by race and lifestyle than by income
Figure 26: Willingness to pay extra for green products, by HH income, race/ethnicity, presence of children, and type of green consumer, November 2009
THE IMPACT OF THE RECESSION ON GREEN SHOPPING
Key points
Majority of consumers have not cut back on green spending
Figure 27: Change in spending on green products, by age, November 2008-November 2009
Race and Hispanic origin
Figure 28: Change in spending on green products, by race/Hispanic origin, November 2008-November 2009
Families with children
Figure 29: Change in spending on green products, by presence of children in the household, November 2008-November 2009
Higher income groups face fewer tradeoffs; increase green spending
Figure 30: Change in spending on green products, by household income, November 2008-November 2009
HOW DO WE KNOW IT’S REALLY GREEN?
Key points
Consumers less skeptical of green claims
Figure 31: Change in beliefs about verifying and trusting green product claims, 2008 and 2009
Higher income groups more skeptical of green claims
Figure 32: Skepticism about green claims, by household income, November 2009
CLUSTER ANALYSIS
Cluster 1: True Greens
Cluster 2: No Greens
Cluster 3: Sometimes Greens
Characteristic tables
Figure 33: Green living clusters, November 2009
Figure 34: Frequency of purchasing different categories of green products, by green living clusters, November 2009
Figure 35: Influence of green factors on major purchases, by green living clusters, November 2009
Figure 36: Influence of green factors on choice of service providers, by green living clusters, November 2009
Figure 37: Beliefs about green product claims, pricing, and convenience, by green living clusters, November 2009
Figure 38: Willingness to pay extra for green products, by green living clusters, November 2009
Figure 39: Change in spending on green products, by green living clusters, November 2008-November 2009
Figure 40: Beliefs about green product claims, pricing, and convenience, by green living clusters, November 2009
Figure 41: Beliefs about green product claims, pricing, and convenience, by green living clusters, November 2009
Demographic tables:
Figure 42: Green living clusters, by gender, November 2009
Figure 43: Green living clusters, by age, November 2009
Figure 44: Green living clusters, by household income, November 2009
Figure 45: Green living clusters, by race, November 2009
Figure 46: Green living clusters, by Hispanic origin, November 2009
Cluster methodology
CUSTOM CONSUMER GROUPS
 DADS WILLING TO PAY FOR A RANGE OF GREEN PRODUCTS
Figure 47: Influence of green factors on major purchases, by parents and non-parents, November 2009
Figure 48: Influence of green factors on choice of service providers, by parents and non-parents, November 2009
Figure 49: Beliefs about green product claims, pricing, and convenience, by parents and non-parents, November 2009
Figure 50: Willingness to pay extra for green products, by parents and non-parents, November 2009
 A CLOSER LOOK AT GREEN HISPANICS
Figure 51: Frequent purchasers of green household products, by Hispanic origin and household income, November 2009
Figure 52: Influence of green factors on purchases of consumer services, by Hispanic origin and household income, November 2009
APPENDIX—OTHER USEFUL CONSUMER TABLES
Attitudes toward green products
Figure 53: Attitudes toward green products, by parents and non-parents, November 2009
APPENDIX: TRADE ASSOCIATIONS