Table of Contents
- Issues in the Market
- Key themes in the market
- Definitions
- Abbreviations
- Insights and Opportunities
- It' s cost, not principles, that drives ethical and environmental behaviour
- Consumers need help to ' connect the issues'
- Could lack of trusted certification be inhibiting growth?
- Untapped potential demand for ethical/green financial products
- Sector in Brief
- Both NI and RoI economies still in recession
- Disposable income and consumer spending continuing to decline
- Consumer concerns switch from ethical to economic
- Increased price-consciousness on account of downturn
- Awareness and knowledge of ethical issues increasing
- Ethical food and drink sector to experience slowdown in growth
- Ethical clothing growing in stature -- but obstacles remain
- Preference among consumers for disposable over durable clothing
- Interest in ethical finance still niche, but likely to grow
- Outlook positive for ethical investments
- Eco-tourism to suffer in line with overall tourist sector
- Profile of ethical tourism increasing, but confusion remains
- Irish consumers want more from their holidays, which bodes well for
ethical tourism
- More interest in ethical issues among RoI consumers
- Food production issues not a huge worry for Irish consumers
- Local ethical/environmental issues of greatest concern in NI
- Global environmental issues of more concern to RoI consumers
- Human welfare-related issues of concern to all consumers
- Issues related to corporate behaviour not high on consumers' agenda
- Cost-cutting, not ethics, driving ethical behaviour
- ABC1s and women more ethical than C2DEs and men
- 71% of RoI consumers and 52% of NI consumers are ethically-minded
- Fast Forward Trends
- Trend 1: Customisation
- What' s it about?
- What we' ve seen
- Specifics
- What next?
- Trend 2: Greenfluencers
- What' s it about?
- What we' ve seen
- What next?
- Internal Market Environment
- Key points
- Recession-battered consumers more price-focused
- Figure 1: Agreement with selected shopping-related statements, RoI & NI,
April 2009
- Value for money the main concern for Irish consumers
- Low-cost doesn' t necessarily mean unethical production
- Some correlation between ethically-minded and cost-cutting consumers
- Figure 2: Correlation between ethically-minded and cost-cutting
consumers, by key demographics, RoI, 2008-09
- Figure 3: Correlation between ethically-minded and cost-cutting
consumers, by key demographics, NI, 2008-09
- Consumers paying more attention to what they eat
- Strong awareness of ethical issues
- Food scares likely to sharpen focus further
- Danger that price wars could force retailers to cut corners
- When ' ethical' isn' t ethical at all
- Cynicism over recent trend of selling-out by ethical ' champions'
- Broader Market Environment
- Key points
- All-Ireland economy firmly in recession
- Figure 4: Economic outlook, RoI & NI, 2008-10
- RoI
- NI
- Rising unemployment in both economies
- RoI
- NI
- Disposable income levels in decline
- RoI
- NI
- Consumer spending set to decline further
- RoI
- NI
- Consumer confidence close to recent lows
- RoI
- NI
- Economic worries usurping ethical concerns
- Economic over ethical issues
- Irish consumers recognise the seriousness of climate change
- Irish consumers proactive on climate change
- Green Party political meltdown could remove environmental impetus
- Strengths and Weaknesses
- Strengths
- Weaknesses
- Food and Drink
- Key points
- Sales performance
- Slowdown in organic sector growth for 2009-11
- Figure 5: Estimated value and forecast of the organic market, IoI, RoI &
NI, 2003-13
- Fair Trade sector faring better
- Opportunity for farmers' markets to increase sales
- Local produce to lose out during recession
- Impact of recession/increased price-consciousness
- Likely impact of increasing price-consciousness on organic sales
- Is fair trade recession-resilient?
- Figure 6: Consumers' response to ' Has the economic situation reduced
either the number of or the frequency with which you buy Fairtrade Mark
products?' , NI & RoI, April 2009
- But most consumers remain unconvinced
- Sector developments
- Difference between organic and non-organic narrowing
- Fair trade now mainstream
- New product developments prudently emphasizing health benefits
- Clothing Retailing
- Key points
- Sales performance
- Ethical clothing may prove more resilient to recession
- Figure 7: Market value and forecast, clothing retailing, Ireland, 2003-13
- Threats and opportunities
- Positive coverage to keep issue on consumer agenda
- Perception that ethical clothing just isn' t cool being addressed
- Mainstream retailers embracing ethical fashion
- Lack of understanding inhibits willingness to pay premium
- Doubts among consumers as to whether ethical is good value
- Doubts as to whether ethical is all it claims to be
- Consumer behaviour
- Consumer data indicates a preference for disposable over durable clothing
- Figure 8: Agreement with selected statements on clothing and clothing
purchases, NI & RoI, 2008
- Figure 9: Agreement with selected statements on clothing and clothing
retailing, NI & RoI, 2008
- Trend for cheap, disposable clothing likely to grow during recession
- ...but thrift can -- sometimes -- be ethical
- Only a minority of consumers admit to being entirely disinterested
- ... but (consumer) actions speak louder than words...
- Finance
- Key points
- Sector background
- Growing but limited interest in ethical finance
- Ethical investment the notable exception...
- Growth in ethical finance surpassing other ethical sectors
- Recent developments
- Green agenda central to global economic recovery
- ... but danger of bubble forming on back of fiscal stimulus
- Cynicism over financial institutions' claims...
- ... but ethical commitment could ' redeem' financial institutions
- Experts anticipate interest in Sharia-compliant investment funds
- Outlook for ethical investment
- Performance and security critical in current climate
- Figure 10: Year-to-date performance, ISEQ overall index vs selected
ethical/SRI funds, RoI, September 2009
- Perception that ethical investments more vulnerable to volatility
- Liberal use of ' ethical' threatens credibility
- Equities could benefit from being ' the best of a bad lot'
- Outlook for ethical investments seems positive
- Macro developments
- Leadership from the top as RoI government goes ethical
- Global trend towards responsible investment
- Travel
- Key points
- Economic downturn will inevitably affect eco-tourism
- Ambiguity of terms results in consumer confusion
- Initiatives raising awareness of travel' s impact on environment
- Declining interest in ' empty' holidays
- Domestic tourism unlikely to gain much from recession
- ... but low-cost domestic holiday options undergoing revival
- Do Irish Consumers Really Care?
- Key points
- Figure 11: Percentage of consumers that feel strongly about selected
green/ethical issues, NI & RoI, August 2009
- More interest in ethical issues among RoI consumers
- Food production issues of limited concern to Irish consumers
- Figure 12: Percentage of consumers who feel strongly about genetically
modified foods, NI & RoI, by gender and age, August 2009
- Figure 13: Percentage of consumers who feel strongly about intensive
farming methods, by gender and socio-economic group, NI & RoI, August 2009
- Charity begins at home for NI consumers
- Figure 14: Percentage of consumers who feel strongly about supporting
local charities, by gender and age, NI & RoI, August 2009
- Drowning in packaging
- Figure 15: Percentage of consumers who feel strongly about excessive
packaging on groceries, by gender and socio-economic group, NI & RoI, August
2009
- Global environmental issues worrying RoI consumers
- Figure 16: Percentage of consumers who feel strongly about climate
change, by gender and age, NI & RoI, August 2009
- Plight of overseas workers and fair trade feature strongly in consumers'
concerns
- Figure 17: Percentage of consumers who feel strongly about the
exploitation of workers/children in developing countries and fair trade, NI
& RoI, August 2009
- Corporate behaviour of little concern to Irish consumers
- Figure 18: Percentage of consumers who feel strongly about the
responsible advertising of alcohol or unhealthy food, by gender and work
status, NI & RoI, August 2009
- Impact of multinational chains on local retailers of no concern
- Irish Consumers' Ethical Behaviour
- Key points
- Figure 19: Green or ethical issues that consumers participate in, NI &
RoI, August 2009
- Ethical behaviour led by financial prudence more than principles
- Figure 20: Average rates of participation in green/ethical issues
according to cost-implications for consumers, NI & RoI, August 2009
- ABC1s most likely to ' put their money where their mouths are'
- Figure 21: Participation in selected green or ethical issues, by
socio-economic group, NI, August 2009
- Figure 22: Participation in selected green or ethical issues, by
socio-economic group, RoI, August 2009
- Age of revolutionary students is no more
- Figure 23: Participation in selected green or ethical issues, retired
consumers vs. students NI, August 2009
- Figure 24: Participation in selected green or ethical issues, retired
consumers vs. students RoI, August 2009
- The fairer sex in all respects
- Mismatch between words and deeds
- Figure 25: Comparative analysis between conviction and action, selected
ethical issues, NI & RoI, August 2009
- Consumer Typologies
- Key points
- NI
- Figure 26: NI consumer typologies, August 2009
- Waste Warriors
- Not Ethically Minded
- Eco Advocates
- All Talk, No Action
- RoI
- Figure 27: RoI consumer typologies, August 2009
- Humanists
- Sceptical
- Eco Warriors
- Ethical Advocates
- Appendix -- Internal Market Environment
- Health awareness among consumers
- Figure 28: Agreement with statement, ' I don' t pay sufficient attention
to what I eat' , NI & RoI, 2007 and 2008
- Consumer awareness of food labels
- Figure 29: Consumer awareness of food labels, RoI, 2008
- Appendix -- Broader Market Environment
- Consumer confidence
- Figure 30: Consumer confidence, RoI, June 2008-June 2009
- Figure 31: Consumer confidence (seasonally adjusted), UK (incl. NI),
June 2008-June 2009
- Figure 32: Present situation index, UK (incl. NI), June 2008-June 2009
- Figure 33: Consumer confidence (3-month moving average), RoI, June 2004-
June 2009
- Consumer concerns over environment: Ireland, UK and Europe
- Figure 34: Issue deemed to be "the most serious problem currently facing
the world as a whole", EU27, 2008 and 2009
- Figure 35: Issue deemed to be "the most serious problem currently facing
the world as a whole", EU27, UK & RoI, Spring 2009
- Figure 36: Agreement with "There is too much concern for the
environment", NI & RoI, 2003-08
- Figure 37: Response to "how serious a problem do you think climate
change is at the moment?" EU27, RoI & UK, Spring 2009
- Figure 38: Consumers who personally have taken actions aimed at helping
to fight climate change, EU27, UK & RoI, Spring 2009
- Green Party election results: RoI
- Figure 39: Local election results, RoI, 2004 and 2009
- Appendix -- Food and drink
- Organic produce
- Figure 40: Estimated value and forecast of the organic market, IoI, RoI
& NI, 2003-13
- Figure 41: Typical supermarket price difference between organic and
standard produce, 2008
- Figure 42: Agreement with "It' s worth paying more for organic food", NI
& RoI, 2003-08
- Fair trade products
- Figure 43: Fair trade retail sales market value and forecast, RoI,
2003-13
- Figure 44: Agreement with "I buy fair trade products when available," NI
& RoI, 2003-08
- Local produce
- Figure 45: Agreement with selected statements related to local produce,
NI & RoI, 2008
- New product launches
- Figure 46: Number of ethical new product launches, by top ten claims,
food and drink (incl. alcohol), UK and RoI, 2003-09
- Appendix -- Clothing Retailing
- Figure 47: Market value and forecast, clothing retailing, Ireland,
2003-13
- Figure 48: Selected attitudes to ethical clothing, UK, November 2008
- Appendix -- Finance
- Figure 49: Top five most important factors when choosing a current
account, NI and RoI, 2008
- Figure 50: Top five most important factors when choosing a savings
account, NI and RoI, 2008
- Figure 51: Percentage increase in consumer spend on ethical products,
UK, 2007-08
- Figure 52: Comparative performance, FTSE4Good Global Index vs. FTSE
Developed Index, July 2009
- Figure 53: Comparative industry weights, %, FTSE4Good Global Index Vs.
FTSE Developed Index, July 2009
- Figure 54: Comparative volatility, FTSE4Good Global Index vs. FTSE
Developed Index, July 2009
- Figure 55: Key drivers for SRI demand over coming three years, Europe,
2008
- Appendix -- Ethical Tourism
- Figure 56: Agreement with ' When on holiday, I only want to eat, drink
and sunbathe' , NI & RoI, 2003 and 2008
- Green or ethical issues that consumers participate in
- Appendix -- Consumer Typologies
- Figure 57: Consumer typologies, by demographic breakdown, NI, July 2009
- Figure 58: Consumer typologies relating to green or ethical issues
respondents feel most passionately about, and green or ethical activities
respondents personally participate in, NI, July 2009
- Figure 59: Consumer typologies, by demographic breakdown, RoI, July 2009
- Millward Brown tables
- Figure 60: Consumer typologies relating to green or ethical issues
respondents feel most passionately about, and green or ethical activities
respondents personally participate in, RoI, July 2009
- Figure 61: Green or ethical issues respondents feel most passionately
about, NI, August 2009
- Figure 62: Green or ethical issues respondents actively participate in,
NI, August 2009
- Figure 63: Green or ethical issues respondents feel most passionately
about, NI, August 2009
- Figure 64: Green or ethical issues respondents feel most passionately
about, NI, August 2009
- Figure 65: Green or ethical issues respondents actively participate in,
NI, August 2009
- Figure 66: Green or ethical issues respondents actively participate in,
NI, August 2009
- Figure 67: Green or ethical issues respondents actively participate in,
NI, August 2009
- Figure 68: Green or ethical issues respondents feel most passionately
about, RoI, August 2009
- Figure 69: Green or ethical issues respondents feel most passionately
about, RoI, August 2009
- Figure 70: Green or ethical issues respondents actively participate in,
RoI, August 2009
- Figure 71: Green or ethical issues respondents actively participate in,
RoI, August 2009
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