Green is Gold

June 8, 2009, 11:22 pm by Aaron Raybin

In these tough economic times, there are very few areas of growth. Currently green purchasing is bucking the trend. A recent IRI Times & Trends Report showed that green-product popularity has grown for the past five years.

You might ask just who is buying more eco-friendly products? Interestingly, the report showed that the most environmentally focused consumers aren’t increasing their purchasing. Probably because their shopping baskets are “already saturated with sustainable products.” On the other hand, consumers who are slightly less committed to a sustainable lifestyle have yet to reach their green purchasing limit. It’s these folks who have increased spending on sustainable items by 15 percent.

The report goes on to break consumers into several categories, or segments:

Eco-Centrics are the most well-informed and actively involved in environmental issues. They are willing to pay more for eco-friendly products.
Respectful Stewards are idealistic and community focused. They are also willing to pay for more eco-friendly products.
Proud Traditionalists are hard-working and focused on family. They run environmentally responsible homes and experiment with eco-friendly products.
Frugal Earth Mothers are lower-income women looking for ways to save money wherever possible. They are more focused finding good, wholesome products for their families.
Skeptical Individualists are highly-educated, high-income men who tend to be skeptical about corporate green initiatives.
Eco-Chics are young adults who see green as new and hip. Impulse buyers and early adopters, they tend to be drawn to environmental causes but aren’t necessarily well-informed about them.
Green Naives are young, lower-income shoppers with little interest in environmental responsibility.
Eco-Villians – generally middle-income men – do not environmental concerns into their purchasing choices.

Think about which segments your products attract and target your marketing to suit their needs. They’ll beat a path to your door.

If the IRI report isn’t enough to convince you that environmentally friendly products are selling, a recent national poll found that two thirds of people who buy “green” have maintained their spending through the recession and one quarter have actually increased their eco friendly purchases. Only eight percent of people purchasing “green” had reduced their spending due to the economy.

companies are feeling the pressure

What’s more, according to a recent U.K. study conducted by YouGov, one in four people consider a company’s ethics before purchasing. One in seven people don’t purchase anything from companies with poor environmental records. In the same study, 59 percent of consumers are skeptical of the environmental claims made by companies, and 44 percent want more information on a company’s environmental record.

It seems everyday more studies and polls are showing that consumers want sustainable, green products, and that this is not a fad but a trend with staying power. Even with the recession consumers are not changing their habits. The fact that consumer demand for green products hasn’t waned under economic pressure, and that it is one of the few current growth segments, makes producing green an enticing option for companies seeking growth.