Green Living - US - January 2009

Table of Contents

• Scope and ThemesWhat you need to know
• Definition
• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• 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
• Market Size and Forecast
• The U.S. Healthy Products, Healthy Planet Market
  • 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
• Concern about the environment continues to grow
  • 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
• Key points
• The natural products marketplace
  • Figure 4: Sales of natural products through conventional FDM and natural supermarkets segmented by product type, 2006 and 2008
• Segment Performance--Food and Beverage
• Key points
• Organic food still cornerstone of green market, despite slowing growth
• Natural and local compete with organic in green food marketplace
  • 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
• Key points
• Natural and organic personal care continues to outperform personal care market
• Segment Performance--Household Cleaning Products
• Key points
• Green cleaning market bolstered by growth of budget-priced product lines
• Segment Performance--Clothing and Linens
• Key points
• Green clothing and shoes likely to suffer from reduced discretionary spending
• Segment Performance--Building, Building Materials and Home Improvement Supplies
• 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
• Key points
• Electronics make progress with recycling and energy-efficiency
• Segment Performance--Cars and Trucks
• Key points
• Auto industry in turmoil creates uncertain future for green cars
• Segment Performance--Consumer Services
• Key points
• Consumer services poised to take off
• Insurance and banking go green
  • Figure 6: Attitudes toward paperless checking accounts, by age, October 2008
• Cleaning up by going green
• Realtors
• Hotels and travel
• Funerals
• Market Drivers
• 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
  • Figure 7: Population by race and Hispanic origin, 2003-13
• The People
• Greening of U.S. consumers on hold
• Key points
  • Figure 8: Change in frequency of green consumer population, August 2006-October 2008
• Awareness and Use of Green Consumer Goods
• Key points
• Use of green household consumables
  • Figure 9: Incidence of purchasing of green products in select household and personal care categories, December 2007-October 2008
• Awareness of green household consumables
  • 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
  • Figure 11: Influence of green factors on major purchases, by category, October 2008
• Use of green consumer services
  • Figure 12: Influence of green factors on purchases of consumer services, by category, October 2008
  • Figure 13: Current use of green consumer services, by age, October 2008
• The Influence of Age on Green Attitudes and Behaviors
• Key points
• Age and the online population
• Green categories by age
  • Figure 14: Frequency of buying green products, by age, October 2008
• Interest in conservation tends to increase with age
  • Figure 15: Environmental attitudes, by age, April 2007-June 2008
  • Figure 16: Environmental behaviors, by age, October 2008
• Seniors lead in local shopping
  • Figure 17: Commitment to purchasing local products, by age, October 2008
• The Impact of Household Income
• Key points
• Greener attitudes don' t lead to greener buying for high income consumers
  • Figure 18: Environmental attitudes, by household income, April 2007-June 2008
• Race and Hispanic Origin
• Key points
• Online Asians and Hispanics lead in green shopping
  • Figure 19: Frequency of buying green products, by race/Hispanic origin, October 2008
• Attitudes toward recycling and pollution
  • Figure 20: Environmental attitudes and behavior, by race/Hispanic origin, April 2007-June 2008
• Looking forward, green factors to play a larger role
  • Figure 21: Influence of green factors on infrequent and major purchases, by race/Hispanic origin, December 2007
• The Impact of Education
• Key point
• College grads have strong environmental ethic
  • Figure 22: Environmental attitudes, by education level, April 2007-June 2008
• How do Greens Think?
• Key points
• Green and healthy lifestyles overlap for many consumers
• The power of packaging
• Care for the planet a priority for spiritual people
  • Figure 23: Environmental attitudes, by personality traits, May 2006-June 2007
• Reasons for Buying or Not Buying Green
• Key points
• Effectiveness/quality
  • Figure 24: Attitudes toward effectiveness of green products, by household income, October 2008
  • Figure 25: Attitudes toward effectiveness of green products, by race/Hispanic origin, October 2008
• Health, safety and savings drive many green purchases
  • Figure 26: Attitudes toward health benefits of green products, by gender, October 2008
  • Figure 27: Main reasons for green shopping, by gender, October 2008
• Availability
  • Figure 28: Consumer experience with the availability of green products, December 2007-October 2008
  • Figure 29: Consumer experience with the availability of green products, by age, October 2008
• Will consumers pay more for green and energy-efficient products?
  • Figure 30: Attitudes toward the cost of green products, by age, October 2008
  • Figure 31: Attitudes toward the cost of green products, by race/Hispanic origin, October 2008
• What is an acceptable premium for green products?
  • 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
  • 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?
• Key points
• Consumers have faith in the power of shopping, but not in green marketing claims
  • 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
  • Figure 35: Beliefs about verifying and trusting green product claims, by type of green consumer, October 2008
• Primary shoppers especially skeptical of green claims
  • Figure 36: Beliefs about verifying and trusting green product claims, by primary shopper status, October 2008
• Appendix: Other Useful Consumer Tables
• Usage
  • Figure 58: Incidence of purchasing different categories of green products, by degree of "green," October 2008
  • Figure 59: Current use of selected green consumer services, by race/Hispanic origin, October 2008
  • Figure 60: Interest in selected green consumer services, by presence of children in the household, October 2008
• Environmental attitudes by demographic
  • Figure 61: Environmental attitudes, by green consumer type, October 2008
  • Figure 62: Environmental attitudes of primary shoppers, October 2008
  • Figure 63: Environmental attitudes, by presence of children in the household, April 2007-June 2008
  • Figure 64: Environmental shopping behaviors, by presence of children in the household, October 2008
• Availability of green products
  • Figure 65: Consumer experience with the availability of green products, by green consumer type, October 2008
• Reasons for buying or not buying green
  • Figure 66: Attitudes toward effectiveness of green products, by type of green consumer, October 2008
  • Figure 67: Main reasons for green shopping, by green consumer type, October 2008
• Appendix: Trade Associations
• Appendix: Healthy Products, Healthy Planet (HP2)
• Consumer products
• Appendix: Natural Products Marketplace Definition
• Natural products
• Body care
• Frozen and refrigerated
• General merchandise
• Grocery
• Packaged produce
• Refrigerated
• Vitamins & supplements, herbs & homeopathic