The Green (and Variegated) Consumer

EXECUTIVE SUMMARY

Market Drivers

Chart 1 Factors Affecting Green Demand 2007

Green Consumer Characteristics

Developments in Consumer Markets

Chart 2 Global Sales of Leading Organic Packaged Food and Drinks Sectors 2007

Retailing Trends

Outlook

Summary 1 The Future of Green Consumerism: Opportunities and Threats

INTRODUCTION

What makes a product green?
Resurgence of interest in the noughties

ENVIRONMENTAL CONCERNS

The Energy Debate

Climate change
Carbon emissions
Eco-friendly vehicles
Car sharing
Renewable energy
Biofuels
Chart 3 Output of Biofuels in Key Markets 2007
Eco homes

Food Supply Issues

Global water supply
Need to preserve biodiversity
The GM foods debate
Food miles

Animal Welfare Issues

Factory farming
Vegetarianism
Chart 4 Vegetarians as % of Population by Country 2005

Waste Disposal Issues

More people, faster lifestyles equals more pollution
The nappy debate
Recycling provides partial solution
Fast food companies are major culprits
Plastic bags

FACTORS AFFECTING DEMAND

Economic Factors

The state of the global economy
Disposable income
Table 1 Average Annual Disposable Incomes by Country 2002-2007

Government Initiatives

Kyoto Protocol
Asia-Pacific Partnership on Clean Development and Climate
EU Climate Change Plan
Progress in France
Sponsorship of environmental labelling systems
EU energy labelling regulations
Energy-saving light bulbs
Packaging and waste legislation
Organic food legislation

NGO Initiatives

The power of persuasion
Action in China
Greenpeace
Friends of the Earth
Oxfam
Sustain
Fairtrade

Company Initiatives

Corporate Social Responsibility
Greening or greenwashing?
Carbon footprinting labelling
Disclosure
Buying into the Green Movement
Expanding the green offer
Summary 2 Selected Organic Food and Beverages Specialists 2007
Carbon offsetting schemes
Green finance

Influence of the Media

Celebrities wield their influence
The power of the Internet

THE GREEN CONSUMER

The Global Picture

Northern European consumers are the greenest
Chinese consumers show concern for climate change

Trends in Developed Markets

Green consumer characteristics
Summary 3 Profile of Green Consumers 2008
Green Consumer Profile: US
Chart 5 Types of Consumer in the US 2007
Green Consumer Profile: UK
Table 2 Ethical Consumerism in the UK 2005-2006

Trends in Emerging Markets

IMPACT ON CONSUMER MARKETS

Organic Food and Drink

Sales concentrated in the developed markets
Segmentation and premiumisation drive growth
Sales soar in all sectors
Organic ready meals address multiple concerns
Organic snack bars perceived as healthy indulgence
Indian coffee beans all the rage
Chart 6 Organic Packaged Foods as a % Total Packaged Foods 2007
Table 3 Sales and Growth of Organic Packaged Foods by Sector 2002/2007
Sales by country
Table 4 Sales and Growth of Organic Packaged Foods in Major Markets 2002-2007

Cosmetics and Toiletries

Chemicals backlash boosts organic beauty market
L'Oréal launches first mass market green anti-ager
Surveys point to strong growth in US market

Disposable Paper Products

Eco-friendly nappies restricted to niche players
Green wipes on the way

Household Care Products

Consumers spurn chemicals
New product development focuses on water-, oxygen- and plant-based ingredients
Green cleaning products finally catch on
Multinationals adopt greener positioning
Retailers not to be outdone

Textiles

Clothing trends
Summary 4 Selected Eco-Labels 2007
Footwear trends
Bags

Household Appliances

Domestic electrical appliances trends
Consumer electronics trends
Summary 5 Greenpeace Ranking of Electronic Companies by Environmental Performance- November 2007

Packaging Trends

Tetra Pak aims for recyclability
Packaging giants go biodegradable
Reckitt Benckiser revamps consumer packaging
Retailers play their part

Green Tourism Trends

Eco-tourism
Green travel

Consumer Foodservice

Starbucks initiates Fairtrade coffee trend
McDonald's becomes more eco-friendly
Boycotting bottled water

IMPACT ON RETAILERS

Local Sourcing

Consolidation gives multiples more power
UK supermarkets take action

Plastic Bag Policies

Banning plastic bags
Recycling schemes
The carrot approach
Charging for bags

Growth of Specialist Chains

Farmers' Markets

Strong growth in US and UK

Expanding the Green Offer

Mass adoption of organic and Fairtrade

FUTURE OUTLOOK

Trends to Watch

Green is here to stay
Economy may affect green demand in short term
Governments to enforce change
Companies will want to appear green
Products must have it all
Retailers to demand changes upstream
Carbon labelling will become standard
Organic food miles will remain thorny issue
Hybrid cars, biofuels and eco-tourism – the future of travel
Foodservice operators to adopt eco-measures
Technological breakthroughs may lead to greener DPP

Organic Food Forecasts

Organic consumer base to expand
Organic versus hormone-free milk
Convenience and health prove winning combination
Wal-Mart sets the trend for US growth
Spain to witness strongest growth
Emerging markets hold vast growth potential
Table 5 Forecast Sales of Organic Packaged Foods by Country 2007-2012

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