Ethical Food and Beverage, Personal Care and Household Products in the U.S.; Conscientious Consumerism and Corporate Responsibility in the New Economy, 2nd Edition

Table of Contents

Chapter 1: Executive Summary

• Scope & Methodology
  • Focus on Food and Non-Food Products
  • Report Methodology
  • Key Ethical Issues
• International Trends
  • Organic Agriculture More than Doubles
  • Ethical Consumerism Mostly in Developed Nations
  • Ethical Consumerism Strong in the U.K.
  • Global Ethical Product Launches Top 5,100
• U.S. Market Size and Composition
  • Retail Sales of Ethical Products at a Record High
  • Food and Beverage Classification Dominates Retail Sales
  • Natural Foods Channel Generates Almost Half of Retail Sales
    • Figure 1-1: Share of U.S. Ethical Products Retail Sales by Classification, 2005 vs. 2009 (percent)
  • Market Outlook
    • A Greener Administration
    • LOHAS: A Potent and Growing Consumer Base
    • Consumers Expect Corporate Responsibility
    • Consumers Willing to Pay More for Sustainability
    • Major Corporations Getting More Involved
    • Cause Marketing Takes Off
    • Healthy Sales Growth Projected Through 2014
• Competitive Overview
  • Top Ethical Product Marketers
  • Acquisitions Yield Consolidation, Credibility Issues
  • The Most Ethical Companies and Brands
  • Over 2,100 New U.S. Products Annually Bear Ethical Claims
  • Organic, Natural Lead New Product Claims
    • Figure 1-2: Top 10 Ethical Claims by Number of U.S. Ethical Product Launches, 2005, 2008 and 2009
  • Natural Supermarkets Set the Pace
• Consumer Overview
  • Three Out of Four Consumers Believe Companies Should Act Ethically
  • Over One-Third of Shoppers Willing to Pay More for Eco-Friendly Products
  • Financial Setback Spur Doing the Right Thing

Chapter 2: Market Overview

• Scope & Methodology
  • Scope of Report: Focus on Food and Non-Food Products
  • Report Methodology
  • Key Ethical Issues
  • Definition of Organic Strictly Regulated
  • No Set Definition for “Locally Grown”
  • Humane Treatment of Animals
  • No Animal Testing/Cruelty-Free
  • Fair Trade or Ethically Sourced
  • Green/Eco-Friendly
  • Corporate Responsibility and Sustainability
  • The Global Reporting Initiative
  • Governmental and Non-Governmental Criteria and Certification
  • Consumers Union Lists 150 Different “Eco-Labels”
• International Trends
  • Organic Agriculture More than Doubles Since 2000
  • Ethical Consumerism Mostly in Developed Nations
  • Global Consumer Attitudes and Actions
  • Ethical Consumerism Strong in the U.K.
  • U.K. Fairtrade Sales Exceed USA' s
  • Carbon Footprint Labeling
  • Global Ethical Product Launches Top 5,100
    • Table 2-1: Global Number of Ethical Product Launches, 2005-2009
  • U.S., U.K., Germany and Canada Lead in Ethical Product Launches
  • Table 2-2: Top 10 Countries by Number of Ethical Product Launches, 2005-2009*
  • The Body Shop and Hain Celestial Out Front in Ethical Product Introductions
  • Organic and Natural Are Top Global Ethical Claims
    • Table 2-3: Top 20 Global Marketers by Number of Ethical Product Launches, 2005-2009
    • Figure 2-1: Top Ethical Claims by Number of Global Ethical Product Launches, 2005, 2008 and 2009
  • New Global Product Notables
• U.S. Market Size and Composition
  • Retail Sales of Ethical Products at a Record High
    • Table 2-4: U.S. Retail Sales of Ethical Products, 2005-2009 (in millions of dollars)
  • Food and Beverage Classification Dominates Retail Sales
    • Figure 2-2: Share of U.S. Retail Sales of Ethical Products by Classification, 2005 vs. 2009 (percent)
  • Natural Foods Channel Generates Almost Half of Retail Sales
    • Figure 2-3: Share of U.S. Retail Sales of Ethical Products by Channel, 2009 (percent)
• Market Outlook
  • Impact of Recession
  • A Greener Administration
  • LOHAS: A Potent and Growing Consumer Base
  • Other Concerns Outweigh Ethical Issues
  • Consumers Expect Corporate Responsibility
  • Consumers Willing to Pay More for Sustainability
    • Table 2-5: Consumer Price Index for Food at Home, Personal Care Products, and Housekeeping Supplies: 1999-2009
  • Major Corporations Getting More Involved
  • Greenwashing Rampant
  • Consumers Need More Proof for Green Claims
  • Cause Marketing Takes Off
  • Retailers Pressuring Suppliers Along Ethical Lines
  • Legislative Changes in the Works
  • Healthy Sales Growth Projected Through 2014
    • Table 2-6: Projected U.S. Retail Sales of Ethical Products, 2009-2014 (in millions of dollars)
• Competitive Overview
  • Top Ethical Product Marketers
  • Acquisitions Yield Consolidation, Credibility Issues
  • The Most Ethical Companies and Brands
  • Over 2,100 New U.S. Products Annually Bear Ethical Claims
    • Table 2-7: Number of U.S. Ethical Product Launches, 2005-2009
  • Organic, Natural Lead New Products Claims
    • Figure 2-4: Top 10 Ethical Claims by Number of U.S. Ethical Product Launches, 2005, 2008 and 2009
  • Marketers Reduce Packaging' s Environmental Footprint
  • Natural Supermarkets Set the Pace
  • Over 18,000 Stores in the Natural Foods Channel
  • Ethical Becoming an Essential Competitive Thrust for Supermarkets
  • Ethical Initiatives at Publix Super Markets
  • Opportunity Too Good for Mass Merchandisers to Miss
  • Specialty and Department Stores Strong in Personal Care
  • Alternative Distribution Channels
• Case Study: Safeway, Inc
  • Safeway Moves to Lifestyle Formats
  • Ethical Private Label and Other Product Initiatives
  • Safeway and Sustainability
• Case Study: Walmart Stores, Inc
  • Walmart Goes Sustainable
  • Success, Controversy, and Green Initiatives
  • More Ethical Products
  • Transforming Marketers
  • Walmart' s Sustainable Packaging Scorecard
  • Next Up: Sustainability Index
  • Greener Stores
  • Corporate Giving
  • Higher Ethics Expected of Suppliers
• Case Study: Whole Foods Market
  • Company Returns to Its Roots
  • Growth Strategy
  • Ethical Convictions and Capitalist Growth Principles
  • Whole Foods Criticized on Ethics
  • Ethical Initiatives
• Consumer Overview
  • Methodology: Experian Simmons Is Primary Source
  • Three Out of Four Consumers Believe Companies Should Act Ethically
    • Table 2-8: Demographic Segments Most and Least Likely to Agree It Is Important a Company Acts Ethically, 2009 (percent, number and index of U.S. adults)
  • Over One-Third of Shoppers Willing to Pay More for Eco-Friendly Products
    • Table 2-9: Demographic Segments Most and Least Likely to Agree They Would Pay More for Environmentally Friendly Products, 2009 (percent, number and index of U.S. adults)
  • Ethical Consumers Come in Shades of Green
  • Consumers and Sustainability
  • GMA-Deloitte Green Shopper Study
  • Financial Setback and Doing the Right Thing
    • Table 2-10: Ethical Consumption Psychographics: Affluent Consumers by Change in Financial Situation, Q3 2008 to Q1 2009 (percent)

Chapter 3: Food & Beverages

• Market Trends
  • Market Definition
  • Four Key Ethical Issues Affect Food and Beverages
  • Definition of “Organic”
    • Organic Foods Not Nutritionally Superior?
    • Canada Adopts Organic Product Regulations
    • Many Organic Foods Support Other Social Issues
  • No Set Definition for “Locally Grown”
  • Humane Treatment of Animals
    • Cage-Free Eggs
    • No Standards for Free-Range Label
  • Fair Trade Practices
  • TransFair Certifies Products Sold in USA
  • Sustainable Agriculture
    • Some Marketers Set Their Own Sustainable Sourcing Guidelines
    • Sustainable Seafood
    • The Sustainable Agriculture Initiative
  • Hormone-Free
  • Genetically Modified Ingredients Widespread
    • Non-Profit Group Begins Non-GMO Certification
    • Genetically Engineered Animals Coming Soon
  • CSR and Corporate Sustainability in the Food Industry
• Market Size and Composition
  • Ethical Food and Beverage Retail Sales Near $28.2 Billion in 2009
    • Table 3-1: U.S. Retail Sales of Ethical Foods and Beverages, 2005-2009 (in millions of dollars)
  • More than Three Out of Four Ethical Foods Carry an “Organic” Claim
  • Sales of Organic Foods and Beverages Pace the Market
    • Table 3-2: U.S. Retail Sales of Organic Foods and Beverages, 2005-2009 (in millions of dollars)
  • U.S. Retail Sales of Fair Trade Foods and Beverages
    • Table 3-3: Global vs. U.S. Retail Sales of Fair Trade Foods and Beverages, 2005-2008 (in millions of euros)
  • Produce and Dairy Are Largest Ethical Categories
    • Figure 3-1: Share of U.S. Retail Sales of Ethical Foods and Beverages by Product Category, 2009 (percent)
  • Natural Foods Channel Leads Retail Sales
    • Figure 3-2: Share of U.S. Retail Sales of Ethical Foods and Beverages by Retail Channel, 2009 (percent)
• Market Outlook
  • Obama Administration Brings Changes
  • More Consumers Choose Ethical Food Shopping
  • Organic Foods and Beverages Going Mainstream, But Growth Is Slowing
    • Table 3-4: Consumers Who Frequently Buy Organic Foods and Beverages, February 2009 (percent of U.S. adults)
  • Nearly 70% of Consumers Buy Organic
  • Organic Foods and Beverages Carry a Price Premium
  • Consumers Willing to Pay More for Organic Foods and Beverages
    • Table 3-5: Consumers Who Are Willing to Pay More for Organic Foods and Beverages, February 2009 (percent of U.S. adults)
  • Organic Farming Takes Root
    • Table 3-6: U.S. Certified Organic Acreage: 1992, 2000, 2003 and 2005
  • A Glut of Organic Supplies?
  • Local Foods Gain Interest
  • Consumers More Attuned to Humane Treatment of Animals
    • Retailers Also Spearhead Animal Welfare Standards
  • Fair Trade, Rainforest Alliance Awareness Gain Momentum
  • More Dairies Going Hormone-Free
  • Few Consumers Understand GMO
  • Cause-Related Marketing
  • Corporate Sustainability Goals
  • Ethical Foods and Beverages Sales Will Top $44 Billion in 2014
    • Table 3-7: Projected U.S. Retail Sales of Ethical Foods and Beverages, 2009-2014 (in millions of dollars)
• Competitive Trends
  • Global Marketers, Investors Control Many Top Brands of Ethical Foods and Beverages
  • Corporate Buyouts Continue
  • Organic Line Extensions Not So Successful
  • Private-Label Ethical Products Booming
• Marketing and New Product Trends
  • More than 1,300 New Products Bear Ethical Claims
    • Table 3-8: Number of U.S. Ethical Food and Beverage Launches, 2005-2009
  • Organic and Natural the Most Popular Claims
    • Figure 3-3: Top 10 Ethical Claims by Number of U.S. Ethical Food and Beverage Launches, 2009
    • Table 3-9: Ethical Claims by Number of U.S. Ethical Food and Beverage Launches, 2005-2009
  • Tea Category Leads in Ethical Products
    • Table 3-10: Number of Ethical Food and Beverage Launches by Product Category, 2005-2009
  • Private Label Leads Product Introductions
    • Table 3-11: Top 15 U.S. Marketers of Ethical Foods and Beverages by Number of Product Launches, 2005-2009
  • More Marketers Ally Themselves with Social and Environmental Causes
  • Reducing Carbon Footprint
  • Traceability as a Consumer Marketing Strategy
  • Celebrity Endorsements: Are They Credible?
  • Mainstream Marketers Extending Brands with Organic Varieties
  • Cage-Free Eggs Making Inroads
  • Sustainable Meat and Seafood
  • Locally Grown Mostly a Retail Strategy
  • Growing Their Own - Chickens
  • Fair Trade and Rainforest Alliance Certification
  • Targeting Ethical Parents through Kids
  • Growth in Bottled Water Drying Up
  • Reduce - Reuse - Recycle: Packaging Goes Eco-Friendly
• Case Studies
  • Clif Bar & Company - Raising the Ethical Bar
    • Community Service and Cause Marketing
    • Corporate Culture Emphasizes Personal Well-Being
    • Quench Bar Supports “1% for the Planet”
  • Contessa Premium Foods, Inc. - Green Cuisine
  • Frito-Lay North America, Inc. - Jumping on Social Trends
    • The Casa Grande Plant Retrofit
    • Earth-Friendly Packaging
  • Case Study: Frontier Natural Products Co-op
    • Focus on Sustainable Sourcing
    • Giving Back to the Community
  • Newman' s Own, Inc.: Dedicated to Philanthropy
    • Hole in the Wall Camps a Big Success
    • Company Partners with Ford to Help Feed America
    • Joins Safe Water Network
    • The Committee Encouraging CorporaThe Greener Cow Pilot Program
    • Quality and Authenticity Are Keys to Success
• te Philanthropy
  • Stonyfield Farm, Inc. - A Model for Corporate Responsibility
• The Consumer
  • The Experian Simmons Consumer Survey
  • One out of Four Consumers Looks for Organic/Natural Foods
  • West Coast, Northeast and Metro Consumers More Likely to Buy Organic/Natural Foods
  • Higher Levels of Education and Income Characterize Consumers
  • Asian-Americans Skew High
  • Youngest Shoppers Resist Organic/Natural Foods, But Small Households Score High
    • Figure 3-4: Selected High-Index Demographics: Consumers Who Look for Organic/Natural Food, 2009 (U.S. adults)
    • Table 3-12: Demographic Overview for Consumers Who Look for Organic/Natural Food (Any Agree), 2009 (percent, number and index of U.S. adults)
    • Table 3-13: Demographic Overview for Consumers Who Look for Organic/Natural Food (Agree a Lot), 2009 (percent, number and index of U.S. adults)
    • Table 3-14: Demographic Overview for Whole Foods Market or Trader Joe' s Shoppers, 2009 (percent, number and index of U.S. adults)
  • Affluent Consumers and Organic/Natural Foods
    • Table 3-15: Affluent Consumers: Largest Demographic Blocs, Q3 2008 to Q1 2009 (percent, number and index)
    • Table 3-16: Affluent Consumers: Top Demographic Indicators, Q3 2008 to Q1 2009 (percent, number and index)
    • Table 3-17: Agreement Among Affluent Consumers with Statement, “When Shopping for Food, I Especially Look for Organic or Natural Foods”: Overall and by Recent Change in Financial Situation, Q3 2008 to Q1 2009 (percent and index)
    • Figure 3-5: Agreement Among Affluent Consumers with Statement, “When Shopping for Food, I Especially Look for Organic or Natural Foods”: By Change in Financial Situation, Q3 2008 to Q1 2009 (percent)

Chapter 4: Non-Food Products

• Market Trends
  • Focus on Ethical Personal Care and Household Products
    • Personal Care Products
    • Household Products
  • Key Ethical Issues Affecting Non-Food Products
  • Natural or Organic vs. Synthetic
  • Cruelty Free - Not Tested on Animals
  • Biodegradable, Recycled and Recyclable
  • Sustainable Sourcing
  • Fair Trade and Ethically Sourced
  • CSR and Corporate Sustainability in the Personal Care and Household Products Industries
  • NSF/ANSI 305: The First Organic Standard for Personal Care Products
  • No Parabens
  • No Regulated Standards for Most Household Products
  • Green or Eco-Friendly Household Products Share Many
    • Similar Attributes
    • No Chlorine Bleach
    • No Phosphates
• Market Size and Composition
  • Retail Sales of Ethical Non-Foods to Top $9.7 Billion in 2009
    • Table 4-1: U.S. Retail Sales of Ethical Non-Food Products, 2005-2009 (in millions of dollars)
  • Ethical Personal Care Products Grow to $8.1 Billion
    • Table 4-2: U.S. Retail Sales of Ethical Personal Care Products, 2005-2009 (in millions of dollars)
  • Ethical Household Products Sales Soar to $1.6 Billion
    • Table 4-3: U.S. Retail Sales of Ethical Household Products, 2005-2009 (in millions of dollars)
  • Personal Care Products Dominate Ethical Non-Food Sales
    • Figure 4-1: Share of U.S. Retail Sales of Ethical Non-Food Products by Segment, 2005 vs. 2009 (percent)
  • Natural Foods Channel Rings Up Almost Half of Retail Sales
    • Figure 4-2: Share of U.S. Retail Sales of Ethical Personal Care Products by Retail Channel, 2009 (percent)
    • Figure 4-3: Share of U.S. Retail Sales of Ethical Household Products by Retail Channel, 2009 (percent)
  • Retail Sales of Organic Non-Food Products Top $1.6 Billion
• Market Outlook
  • More Americans Determined to Go Natural, Organic, Green
  • Green Non-Foods Weathering the Recession Well
  • More Consumers are Going Green
  • Product Safety and Personal Health a Driving Factor
  • Pop-Prestige Chains Buoy Personal Care Product Sales
  • Product Performance Key
  • Mainstream Marketers Joining the Market
  • Fierce Competition for Shelf Space
  • H1N1 Flu Could Dampen Growth of Green Household Products
  • Retail Sales Will Surpass $17.5 Billion by 2014
    • Table 4-4: Projected U.S. Retail Sales of Ethical Non-Food Products, 2009-2014 (in millions of dollars)
  • Ethical Personal Care Sales Will Top $13.6 Billion in 2014
    • Table 4-5: Projected U.S. Retail Sales of Ethical Personal Care Products, 2009-2014 (in millions of dollars)
  • Ethical Household Products Will Approach $3.9 Billion in 2014
    • Table 4-6: Projected U.S. Retail Sales of Ethical Household Products, 2009-2014 (in millions of dollars)
• Competitive Trends
  • Ethical Non-Food Marketers
  • Hundreds of Personal Care Marketers, Only a Few Dozen Majors
    • Table 4-7: Top 10 Marketers of Natural/Organic Personal Care Products by Retail Sales and Percent Share of Total Retail Sales, 2006 vs. 2008 (in millions of dollars)
  • Few Natural Personal Care Marketers Cross Over to Mass-Market Channels
  • Mainstream Household Products Marketers Muscle into Ethical Arena
  • Growth Through Acquisitions
  • Private Label Aplenty
• Marketing and New Product Trends
  • New Non-Food Products with Ethical Claims Rising Rapidly
  • Natural Surpasses Organic as Leading Ethical Claim
  • Soap Is Leading New Product Category in Ethical Non-Foods
  • The Body Shop Leads Marketers in Launches
    • Table 4-8: Number of U.S. Ethical Non-Food Product Launches: 2005-2009
    • Table 4-9: Top 10 Ethical Claims by Number of U.S. Ethical Non-Food Product Launches: 2005, 2008 and 2009 (number)
    • Table 4-10: Ethical Claims by Number of U.S. Ethical Non-Food Product Launches, 2005-2009 (number)
    • Table 4-11: Number of Ethical Non-Food Launches by Product Category: 2005-2009 (number)
    • Table 4-12: Top 10 U.S. Marketers of Ethical Non-Food Products by Number of Product Launches: 2005-2009 (number)
  • Better for the Environment, Better for You
  • Price and Performance Are Key Parts of the Marketing Equation
  • Ethical Products Through Green Chemistry
  • Natural and Pseudo-Natural Personal Care Products Proliferate
    • The Mineral Craze
    • Teens for Safe Cosmetics
    • Other Product Splashes
  • Personal Paper Goods an Environmental Conundrum
  • Green Household Products Surging
  • Other Green Household Products
  • Concentrated Formulas
  • Household Products Come Clean on Ingredients
  • Are Green Paper Products Going Mainstream?
  • Seeing the Light with Energy-Saving Light Bulbs
  • Marketers Embrace Cause-Related Marketing
  • Fair Trade Claims Will Increase in Personal Care Products
  • Sustainability Is Building
  • Private Label Goes Ethical
• Case Studies
  • The Body Shop Under L' Oréal
  • Clorox Co. Goes Green with Burt' s Bees and Green Works
    • Burt' s Bees Humming
    • Clorox' s Green Works Is Cleaning Up in Household Products Market
  • Kimberly-Clark Launches Natural Paper Products
  • Marcal Paper Products LLC: Rising from the Ashes
  • Seventh Generation Fights Back
  • Tom' s of Maine Under Colgate
• The Consumer
  • The Packaged Facts Consumer Study
  • Half of Those Surveyed Use Natural HBC
    • Figure 4-4: Consumer Usage of Natural/Organic Personal Care Products, 2009 (percent of U.S. adults)
  • But Only a Third Say It' s Effective as General-Market HBC
  • Relatively Few Plan to Spend Less on Natural HBC
    • Figure 4-5: Consumer Attitudes About Natural/Organic Personal Care Products, 2009 (percent of U.S. adults)
  • Burt' s Bees the Most Popular Brand By Far
    • Figure 4-6: Consumer Usage of Natural/Organic Personal Care Products by Brand, 2009 (percent of U.S. adult users of natural/organic personal care products)
  • The Experian Simmons Consumer Survey
  • Nearly One-Third of Women Never Buy Cosmetics Tested on Animals
    • Table 4-13: Selected Above Average Demographics for Consumers Who Never Buy Cosmetics Tested on Animals (Any Agree), 2009 (percent, number and index of U.S. adults)
    • Figure 4-7: Selected High Indexes for Consumers Who Never Buy Cosmetics Tested on Animals (Agree a Lot), 2009 (U.S. adults)
  • 37% of Consumers Buy Recycled Paper Products
    • Table 4-14: Selected Above Average Demographics for Consumers Who Buy Recycled Paper Products (Any Agree), 2009 (percent, number and index of U.S. adults)
    • Figure 4-8: Selected High Indexes for Consumers Who Buy Recycled Paper Products (Agree a Lot), 2009 (U.S. adults) 800.298.5294