An extensive new survey has gauged US consumers’ sentiments and behaviours related to sustainability and “green” products, as well as evaluate how consumers interpret the marketing efforts of the companies that offer them.
The survey, detailed in Grail Research's report “The Green Evolution,” found that consumers who previously purchased green products have decreased their green purchasing as a result of the recession.
Specifically, 43 percent of “light green” consumers – those who buy some green products – reduced their usage of green products or switched to conventional ones. At the same time, the percentage of non-green consumers rose from 15 percent to 22 percent.
“Although it’s clear that the market for green products is here to stay, the number of green consumers declined over the past two years,” said Annica Blake, Global Head, Research Services at Grail Research. “Conversely, the number of ‘dark green’ consumers – those who select earth-friendly products for most of their purchases – increased by one percent, and now make up nine percent of the consumer market.”
Key findings and insights from Grail Research’s “The Green Evolution” report include:
The number of green consumers in the U.S. is decreasing as the recession continues.
• The number of light green consumers, those who purchase some green products, decreased from 76 percent to 60 percent of the population.
• The percentage of former green consumers rose from only one percent in the previous survey to 10 percent of consumers.
• Among green consumers, 43 percent cited the economic recession as the reason for not purchasing green products in specific categories – the top reason given.
• As opposed to previous years, growth will increasingly take place when green products can demonstrate equal or better performance and value than conventional products.
Consumers who have yet to switch to green products are unlikely to do so.
• Nine percent of consumers say they never consider buying green products – an increase of four percentage points since the previous report.
• Five percent of dark green consumers and 22 percent of light green consumers switched from green to conventional products.
• Sixty-five percent of respondents changed their purchasing behavior as a result of the recession, with most turning to less expensive green products.
• Green as a whole is no longer a fast-growth market.
Most consumers do not seek out information on green products.
• Only 11 percent of consumers report that they seek information on green companies and their products.
• Packaging still remains the most important source of information for green products, with more than half of consumers saying it impacts their purchasing decision.
• Word of mouth influence is still strong, with 40 percent of respondents citing it as a source of information about green products.
• The volume of green product and brand information is not proportional to its impact on consumer behavior.
Most consumers don’t understand green certifications:
• Dark green consumers most associate the use of natural ingredients with being green, while light green consumers, as well as former green consumers, associate recyclability of packaging with being green.
• More than half (51 percent) of all green consumers would like to see a “greenness” rating for products, even if it’s provided by the retailer.
• Seventy-four percent of dark green consumers and 48 percent of light green consumers would be very likely to use a rating system to make their green purchase decisions.
• Consumers are more likely to find green claims compelling if they provide quantitative information in an easy to visualize description that communicates the impact on the environment.
Competition among green brands is increasing:
• When asked which organizations come to mind when they think of a green company, respondents named the following companies: General Electric (13 percent), Seventh Generation (eight percent), Toyota (six percent), Whole Foods (six percent) and The Clorox Company (four percent).
• With many products claiming green attributes, consumers find it hard to differentiate among them.
• Knowing how to effectively articulate green attributes can improve top-of-mind awareness.
“The availability of green products and alternatives is increasing, and understanding the distinction between dark green and light green consumers has never been more important,” added Blake. “The success and continued evolution of the green market will increasingly be determined by how well marketing messages resonate with consumers. It’s no longer enough to just say you’re green. Consumers now expect comparable value and performance.”
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