A Look at Key Sustainability Trends in the U.S.
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Summary
It has been 11 years since NMI first generated insight into the LOHAS (Lifestyles Of Health And Sustainability) market and quantitatively developed its leading-edge general population segmentation model. During that time, the market has shifted from one of denying that sustainability is an important market force to vigorously embracing it, and from a "boom" economy to one that is significantly more cautious.
At the start of the Recession, some were concerned that it would distract the corporate world's attention to sustainability. Clearly the Recession has made a mark on sustainability, as it has on every other aspect of the economy. However, while we are living in a more austere era, as a society we still do care deeply about our health, the future of our communities, social issues, and the world around us – and most strive to make the planet a better place to live, both for today and future generations. In fact, consumers around the world have a good deal of optimism and hope regarding health and sustainability, and that is evident throughout this groundbreaking research – now conducted in 23 countries.
Throughout this report on the American consumer, you will find many interesting trends – some up, some down – and many interesting comparisons across consumer groups and product categories. For example:
- Consumers are clearly showing more sophistication within the realm of sustainability – with greater understanding of its breadth, depth, and implications, and they pick the elements that mean the most to them.
- Sustainability-related benefits are showing growth in a number of categories across the consumer landscape. Their growth is due in part to the fact that many products and services now come with fewer and fewer trade-offs, and consumers continue to gravitate toward brands that help them live healthfully and sustainably.
- More and more consumers are engaging in green behaviors, whether that's recycling, driving less, voting with their dollars, or any of dozens of other behaviors consumers may engage in to lighten their environmental footprint.
As the market matures, NMI expects to find more consumers finding ways to incorporate sustainable products and behaviors into their lives. And, the more effort that is invested in facilitating this behavior by organizations of all types, the faster this behavior will increase. In the end, eighty percent of all Americans are eager to safeguard the future of their health and that of the environment and society around them.
Table of Contents
Introduction
LOHAS Methodology & Consumer Segmentation
Social & Environmental Topics – NMI's LOHAS Consumer Trends Database®
The LOHAS Database Summary Content & Scope
Segmentation Methodology
NMI's LOHAS Segmentation
DRIFTERS, CONVENTIONALS Show Growth
How LOHAS Influences the Mainstream
Diminishing Concentration of LOHAS Consumers
LOHAS are Predictors of Other Segments' Future Behavior
DRIFTERS' Driving Mainstream Green Behavior (Home Energy Conservation Examples)
NATURALITES and DRIFTERS Driving Growth in Demand for Green Products|
LOHAS and NATURALITES Share Many Environmental Viewpoints
DRIFTERS Share an Array of Environmental Perspectives with Other Segments
Trends in Healthy & Sustainable Attitudes
Environmental Talk is Here to Stay, But Fewer Feel Informed about Green Lifestyle (Even LOHAS)
Perceptions of Environmentally Friendly, Green Lifestyle
LOHAS and NATURALITES More Likely than GP to Care about Appearance, Physical Health, Weight
Exercise Increases with Healthier Mindset
Key Insights: Personal Health
The Connection between Personal & Planetary Health
Recognition of Impacts
Key Insights: Planetary Health
While Few Except LOHAS Teach, Sustainable Products Are More Widely Preferred
Factors Driving Purchase: Rethinking "Need"
Over-Packaging Still Recognized by Many in GP although Impact on Purchase Declining
Key Insights: Packaging
Environmentally-Smart Packaging Is Important to Majority: Many Dimensions/Options Exist
The Economy Continues to Matter..But Sensitivity Has Been Stable for Four Years
Degrees of Green Apathy
Green Apathy
Stark Contrast in Values between LOHAS Consumers and Other Segments
GP Holds Strong Attitudes about Renewable Energy
Key Insights: Sustainable Agriculture
Consumers' Sustainable Behaviors
Perceived Current, Past & Future Eco-Involvement Among GP
Recycling Varies by Material
Reported Recycling Grows – with LOHAS, DRIFTERS, and CONVENTIONALS Leading the Way
Environmental Activities Performed on Regular Basis
Consumption of Bottled Water Remains Flat after '09; Reasons for Decline in Use Subsiding
Taking Your Own Bag and CSR-influenced Purchasing Are Becoming More Routine
Materials Recycling Prominent among LOHAS, CONVENTIONALS & DRIFTERS
Household Energy Conservation Activities
Environmental Outreach
Information Seeking Behavior
Recognition of Seals
Channel Shopping
Trends in Shopping Locally
Product Purchase Patterns
Green Product Adoption Among GP and by Segment
Lifecycle Product Concerns by CPG Category
Lifecycle Concerns Vary by Product Category
Key Insights: Product Lifecycle
Interest in Green Consumer Packaged Goods
Purchase of These Green Products Exceeds or Equals Current Level of Interest
Interest in These Green Products Exceeds Purchase
Value Drives Willingness to Pay Premium Price
Non-LOHAS Consumers Lukewarm on Association between Eco-friendliness and Higher Quality
Expense and Efficacy Growing Barriers to Green Use; Education Improving However
Mainstream Consumers Drive the Eco-Marketplace
LOHAS Not Only Buyers of Green Products
Perceptions of Terms Natural and Organic
Fewer Organic Users Recognize Term "No Synthetic Pesticides" as an Organic Hallmark
LOHAS Likelier to Abandon Brand Based on Ingredients
Men More Skeptical about Green Product Labels,
But More Familiar with Green Terminology
Organic Food and Beverage Purchases Stable or Increasing Modestly
"Whole Grain" Tops List of Food and Beverage Purchases
Food/Beverage Characteristics and Generational Buying Patterns
Expense of Organic Tops List of Concerns; LOHAS Have Fewer Concerns, but Half Still Need Education
LOHAS Most Likely to be Vegetarian or Vegan
Drivers to Food/Beverages Remain Steady
Correspondence Analysis of Product Attributes and Segments
Purchase Drivers for Household Cleaning Products Among GP
Green Personal Care Purchase Drivers among Top
Green Household Product Market Penetration – Tier 1
Green Product GP Market Penetration – Tier 2 (10-18%)
Consumers' Paper Goods Product Criteria
Alternative Vehicle Ownership
Green Home Improvement Products – More Than 2/3 GP Purchased in Past 3 Years
Most Important Benefits of Renewable Power
Attitudes & Behavior Related to CSR
Value Based Choices: Stable Over Time
Key Insights: Value-Based Choices/Cause Marketing
Consumers Seek Greater Environmental Leadership from Corporations
U.S. Government and Corporations Show the Largest Gaps for Protecting the Environment
Areas Consumers Want Companies to Address – People Win
CSR Campaigns Pay Off in Purchase Intent, Influence, and Even Price
Consumers Want Tangible Proof of Sustainability Efforts, Especially the Environmental Gatekeepers
Efficacy of CSR Campaigns is Waning..Yet Stable for the Past Three Years
LOHAS Have Changed Their Attitude About a Company Being Green that Doesn't Use Eco-Friendly Materials
Cause Marketing Has Receptive Audience
CSR-recognized Brands Can Vary by Segment
Demographic Profiles: LCTD Segments
Five Top Sustainability Questions
- What Effect Has the Recession Had on the LOHAS Markeplace?
Point: Green is as Strong As Ever
Counterpoint: The Recession Has Taken a Toll - Are We All Getting Greener? Are We All Going to be LOHAS Consumers One Day?
Point: We are All Getting Greener
Counterpoint: We Will Never All be LOHAS - Which Demographic is the Most Important to the LOHAS Marketplace?
Point: Baby Boomers Represent the Strongest Opportunity
Counterpoint: Gen Y Not Doing as Much as Other Generations to Protect the Environment - Should You Focus on Greening Your Products or Greening Your Operations?
Point: Need to Green Your Products
Counterpoint: Need to Focus on Operations - How do You Balance Providing Information to Your Consumers vs. Information Overload?
Point: Consumers are Confused and Need to Know the Facts
Counterpoint: Need to Keep it Simple (Stupid)
Need to Balance and Evaluate Options
Key Trends Synopsis
Key Trends: Significantly More Consumers...
Key Trends: Significantly Less Consumers...
Appendix
Demographic Profiles: LCTD Segments