Green Living - US - February 2008

Table of Contents

• Scope and Themes
• Definition
• Consumer research conducted for this report
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Drivers and corporate developments
• Climate change leads environmental concerns
• Corporations scramble for "green" investing dollars
• Slowing economy and rising fuel prices spur demand for energy efficiency
• Health and safety concerns bolster the market
• Market in transitional phase as green products mainstream
• Green personal care goes corporate
• Automakers scramble for position in green future
• Consumer influences
• Green consumers optimistic but skeptical
• Consumers believe that "green" products work
• Most consumers not willing to search for "green" products
• Tolerance of price premiums at 10% or less
• Efficacy, awareness, habit key issues in qualitative research
• "Greenwashing" concerns reinforce need for more objective standards for "green" products
• Demographics of Green living
• Young adults key targets for cutting-edge "green" products
• Asians lead; blacks lag in environmental interest
• Students and college graduates committed to "green" lifestyle
• Households with children pose a challenge for "green" marketers
• "Green" lifestyle transcends demographics
• Low-income households need not be excluded from the "green" marketplace
• The future of Green living
• Interest in buying "green" for major purchases skyrockets
• Marketing of multiple values will ensure success of "green" products
• The future is "green"
• Market Drivers
• Climate change continues to hold public attention
  • Figure 1: General attitudes toward environmental concerns, December 2007
• Green investing dollars pour forth
• Stagnant economy and rising fuel prices spur demand for energy-efficient products; limit willingness to pay
  • Figure 2: Willingness to pay extra for "green" products, December 2007
• Product health and safety concerns spike following rash of recalls of Chinese imports
  • Figure 3: Attitudes toward health benefits of "green" products, by gender, December 2007
• Large corporations enter the green marketplace in force
• Green products linked to concepts of health and quality
• Market Size and Trends
• The LOHAS Market
  • Figure 4: Graph: LOHAS "green" market size, by segment, 2005
• The U.S. Healthy Products, Healthy Planet Market
  • Figure 5: HP2 market size and forecast, at current and constant prices, 2002-12
• The Natural Products Marketplace
  • Figure 6: Sales of natural products through conventional FDM and natural supermarkets, segmented by product type, 2004 and 2006
• Market Segmentation
• Introduction
• Food and beverage
  • Figure 7: Sales of natural food and drink products at FDM and natural supermarkets, at current and constant prices, 2004-08
• Green personal care growing 20% annually
• Pet foods and supplies
• Household cleaning products
• Clothing and linens
• Building, building materials and home improvement supplies
• Certification systems blossom
• Green building gets pop culture boost
• Housing bubble bursts
• Local mandates
• Costs of green building shrink
• Solar is hot
• Green design goes from exception to rule
• Electronics and appliances
• Industry faces substantial sustainability and power consumption issues
• New products ahead
• CE recycling goes mainstream
• Major appliances
• Cars and trucks
  • Figure 8: Price premiums and estimated fuel savings for hybrid versus conventional passenger vehicles, 2008
• Consumer services
• Climate change concerns drive market for greener air travel
• Carbon offsets to ease guilt
• Hotels
• Car travel
• Finding and booking green travel
• Super/True Green Population Tripled over 16 months
  • Figure 9: Change in frequency of "green" consumer population, August 2006-December 2007
• Awareness and Use of "Green" Consumer Goods
• Awareness of "green" household consumables
  • Figure 10: Frequency of purchasing different categories of "green" products, December 2007
• All product categories show greater penetration among Asians and Hispanics
• Education most important for awareness of established "green" categories
• Awareness of "green" durable and infrequently purchased consumer consumables
  • Figure 11: Influence of "green" factors on major purchases, by category, December 2007
• Youngest and Oldest Core of "Green" Market in Online Population
• Introduction
• Green categories by age
  • Figure 12: Frequency of buying "green" products, by age, December 2007
• Attitudes toward recycling, pollution, and premiums
  • Figure 13: Environmental attitudes, by age, May 2006-June 2007
• Interest in conservation tends to increase with age
  • Figure 14: Environmental behaviors, by age, December 2007
• Seniors lead in "green" shopping choices
  • Figure 15: Environmental shopping behaviors, by age, December 2007
• Interest in "green" shopping growing fastest among seniors
  • Figure 16: Influence of "green" factors on CE products, by age, December 2007
• The Impact of Household Income
• Introduction
• Attitudes toward recycling and pollution
  • Figure 17: Environmental attitudes, by household income, May 2006-June 2007
• Green shopping by the rich and poor
  • Figure 18: "Green" shopping habits, by household income, May 2006-June 2007
• Race and Ethnicity
• Introduction
  • Figure 19: Frequency of buying "green" products, by race/ethnicity, December 2007
• Attitudes toward recycling and pollution
  • Figure 20: Environmental attitudes and behavior, by race/ethnicity, May 2006-June 2007
• Looking forward, "green" factors to play a larger role
  • Figure 21: Influence of "green" factors on purchases of CE products, by race/ethnicity, December 2007
• The Impact of Education
• Introduction
  • Figure 22: Frequency of buying "green" products, by education level, December 2007
  • Figure 23: Frequency of buying "green" products, by student status, December 2007
• Attitudes toward recycling and pollution
  • Figure 24: Environmental attitudes, by education level, May 2006-June 2007
• Willingness to sacrifice convenience or income
  • Figure 25: Environmental behaviors, by education level, December 2007
• Households with Children
• Introduction
  • Figure 26: Environmental attitudes, by presence of children in the household, May 2006-June 2007
• Convenience is a must for families with children
  • Figure 27: Environmental shopping behaviors, by presence of children in the household, December 2007
• How do Greens Think?
• Introduction
  • Figure 28: Environmental attitudes, by personality traits, May 2006-June 2007
• Reasons for Buying or Not Buying Green
• Introduction
• Effectiveness/quality
  • Figure 29: Attitudes toward effectiveness of "green" products, December 2007
• The majority of respondents do not see "green" products as safer
  • Figure 30: Attitudes toward health benefits of "green" products, by household income, December 2007
• Health and savings vs. environmental concern
  • Figure 31: Main reasons for "green" shopping, by gender, December 2007
  • Figure 32: Main reasons for "green" shopping, by race/ethnicity, December 2007
• Availability
  • Figure 33: Consumer experience with the availability of "green" products, December 2007
  • Figure 34: Consumer experience with the availability of "green" products, by age, December 2007
• Will consumers pay more for "green" and energy-efficient products?
  • Figure 35: Attitudes toward the cost of "green" products, by gender, December 2007
  • Figure 36: Attitudes toward the cost of "green" products, by age, December 2007
  • Figure 37: Attitudes toward the cost of "green" products, by household income, December 2007
  • Figure 38: Attitudes toward the cost of "green" products, by race/ethnicity, December 2007
• What is an acceptable premium for "green" products?
  • Figure 39: Willingness to pay extra for "green" products, by age, December 2007
  • Figure 40: Willingness to pay extra for "green" products, by HH income, race/ethnicity, presence of children, and student status, December 2007
• How Do We Know It' s Really Green?
  • Figure 41: Attitudes toward the effectiveness of "green" shopping, by race/ethnicity, December 2007
• More standards needed
• "Greenwashing" concerns provide incentives for industry-led standards
• Results from Mintel' s Qualitative Survey
• Introduction
  • Figure 42: Descriptions of "green" lifestyle interviewees, January 2008
• Environmental concerns
• "Green" shopping commonalities in qualitative study
• Availability and awareness problematic for "green" shoppers
  • Figure 43: Availability and awareness of "green" products, by respondent and location, January 2008
• Habits are hard to break
  • Figure 44: "Habit" purchasing, January 2008
• Many see link between personal health and planetary health
  • Figure 45: Respondents' thoughts about effectiveness and quality of "green" products, January 2008
• Product quality and function overriding issues for some
  • Figure 46: Effectiveness and quality of "green" products, January 2008
• Prices need to be competitive
  • Figure 47: Respondents' willingness to pay extra for "green" products, January 2008
• A "Green" Future
• Green market to lose trendiness
• Christian conservatives joining the "green" movement
• Fair trade and local to become the new "green"
• Fair trade
• Local
• Appendix: HP2 Market Detail
  • Figure 48: HP2 market detail, 2005
• Appendix: Trade Associations