50% of Shoppers Factor Sustainability into Purchasing Decisions
Jan. 9, 2008 Half of U.S. consumers consider at least one sustainability factor in selecting consumer packaged goods (CPG) items and choosing where to shop for those products, according to new survey. What's more, green-minded purchasing once considered a primarily youth-driven movement now appears to cut across all market segments.
The survey asked 22,000 U.S. consumers to determine the impact of four key sustainability features in their product and store selection: organic, eco-friendly products, eco-friendly packaging, and fair treatment of employees and suppliers. About 30% of respondents say they look for eco-friendly products and packaging in their brand selection, and 25% consider fair trade practices along with eco-friendly or organic designations in selecting a shopping destination. One-fifth of those surveyed say they take at least two of these sustainability factors into account when making their selections.
Organics appear to be generating the most attention, with 40% of consumers saying they search specifically for organic products. Once dominated by niche manufacturers and specialty retailers, CPG industry leaders now maintain a sizable stake in the organics market, the survey notes. Supermarket chains Safeway and Kroger, for example, both maintain successful organic private-label linesIn addition, several leading manufacturers are also beginning to offer organic versions of favorite products, such as Kraft's organic Wheat Thins and Chips Ahoy.
"Currently, organic products are scoring extremely well with consumers," says Andrew Salzman, chief marketing officer of Information Resources, Inc., which conducted the study. "Benefiting from the winning combination of a 'better for you' association and a 'better for the environment' attribute, the organic designation has moved to the front of consumer consciousness."
Among non-food items, the study highlights replacement of chemical-based items with eco-friendly products as an emerging sustainability category. Green laundry detergent, for example, represents just 2% of the total detergent market but has seen a two-thirds increase in sales within the category over the past year.
Whether motivated by the aim for healthier ingredients or a heightened environmental consciousness, the survey also underscores the fact that calls for sustainability cut across every consumer age group. Contrary to assumptions that the focus on sustainability is a more youth-oriented phenomenon, the data shows that older consumers are actually the more likely audience to weigh multiple sustainability factors in their purchases.
"Sustainability has evolved from a niche segment concern to a major factor influencing purchasing and shopping behavior across a sizable consumer base," says Salzman. "It's a new reality that manufacturers and retailers will need to address with new products and unique assortments to tap into emerging growth potential. Safeguarding the environment...is becoming a consumer priority, and all sucessful CPG industry mainstays live by one basic fact of life: The consumer's priorities are the industry's priorities."
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