June 6, 2008 – Conscious consumers look set to take the $209 billion LOHAS (Lifestyles of Health and Sustainability) products market past the $400 billion mark by 2010, according to the Natural Marketing Institute (NMI), a research firm.

NMI has released a new study, conducted with Nielsen, that offers insights to help the consumer packaged goods (CPG) industry to take advantage of this exploding trend.

“Sustainability is here to stay, and clearly, our research shows that LOHAS consumers are important consumers for CPG manufacturers and retailers to attract to their brands and stores,” said Todd Hale, senior vice president at the Nielsen Company.

The research shows that compared to other consumers, LOHAS consumers are the top spenders in CPG categories that offer more organic, natural, or eco-friendly options, such as produce, cereal, soup, eggs, pasta, nuts, and lightbulbs.

“Opportunities for CPG manufacturers and retailers seeking to capture the LOHAS consumer wallet include non-carbonated soft drinks, such as isotonics and sports drinks, baking mixes, and indulgences, such as frozen novelties and syrups,” according to NMI.

Focusing product marketing on health and wellness appears to offer significant opportunities as well, according to the report. Eighty-one percent of LOHAS households purchase products labeled as organic, spending nearly four times as much as non-green consumers. LOHAS consumers also demonstrate their commitment to a sustainable lifestyle by purchasing products with health claims, such as “gluten free,” “multi-grain,” and “probiotic.” For example, LOHAS consumers spend more than twice as much on sprouted grain and GMO (genetically modified organisms) free products, the report shows.

Finally, the report suggests that where such products are sold is as important as how they are marketed. LOHAS consumers spend 10% more in warehouse clubs compared to non-green consumers, who tend to favor supercenters and dollar stores.

“Not only do we see LOHAS consumers spend more in certain shopping channels compared to non-green consumers, but we also see LOHAS consumers spend more than non-green consumers in virtually every department of the store,” says Nielsen’s Hale.