Abstract
This 130+-page report provides a general overview of the LOHAS marketplace and of the five NMI LOHAS segments. It explores how NMI' s proprietary LOHAS consumer segments differ in attitudes toward the environment, society, corporate social responsibility, and health. It also provides an introduction to their behavior, sources of influence, and demographics and provides an in-depth focus on personal care. In the green industry, 2007 may be marked as the proverbial "tipping point." Never has so much corporate activity, media attention, and consumer involvement been directed toward sustaining the planet, improving the lives of people around the world, and protecting the ability of future generations to meet their own needs.
It is a confluence of factors that heralded in the recent market activities. Certainly, An Inconvenient Truth raised awareness of the severity of climate change among many consumers. Subsequently, mainstream media, including Discovery Channel and NBC, have incorporated green topics into their programming and further raised awareness among many consumers.
Meanwhile, many companies have identified very profitable ways of being good environmental stewards, allowing environmental issues to move from a "liability" to an "asset." GE' s Ecomagination campaign is just one example of how selling green products can produce clear, bottom-line results: GE reports making billions of dollars on Ecomagination products. A corollary change is that product development has improved - many green products can compete not just on their green credentials, but also on the traditional benefits consumers seek. For example, some consumers are primarily drawn to hybrid cars for the gas savings, with lowering CO2 emissions as a secondary advantage. Similarly, compact fluorescent lightbulbs (CFLs) last longer and save energy.
The price and availability of LOHAS products has also shifted. Green products are now widely available at Home Depot, Wal-Mart, Safeway, Staples, and other retailers. Moving the products from niche, sometimes hard-to-find retailers to the mainstream has made them available to millions of consumers who previously did not have any viable purchase options. Simultaneously, the price of many LOHAS products has declined, making them a more viable option for many consumers.
These shifts have resulted in products and services that appeal to general population America, not just LOHAS consumers. Consequently, there are significant opportunities for marketers as the size of the total market pie grows rapidly.
As in previous years, NMI has applied its proprietary segmentation model to the total U.S. population. The model NMI developed in 2006, identifying LOHAS, NATURALITES, DRIFTERS, CONVENTIONALS and UNCONCERNEDS, will be trended and analyzed throughout this report.
New to this year' s report are four major insights NMI observes in the LOHAS marketplace. These trends affect every industry, and it would behoove readers to give them pause and consider the applications to their own business. They are:
- 1. From Purchaser to Participant
- 2. Sustainable Style
- 3. Shades of Green for Everyone
- 4. Greenwashing Washout
Each of the above trends is explained and referenced throughout the report.
NMI continues to believe that the LOHAS marketplace is very opportunistic and will remain so for the foreseeable future. That said, the time for corporate action is now. Sustainability concerns are unlikely to diminish over the coming years, and ignoring this trend only gives your competition more time to establish market leadership. Alternatively, understanding what the trends mean to a business and brand allows an organization to frame the conversation with its consumers and/or customers and capitalize on this exciting market transformation. It may be necessary to start small, but doing so is critical for long-term business sustainability.
Report Methodology
These reports are based on research that was fielded in July 2007 via a primary consumer survey of 2,074 U.S. general population (GP) adults. The results of this survey are nationally projectable to the U.S. adult population and statistically valid at the 95% confidence level +/- 2%. The data have been post-weighted to match multiple U.S. Census demographic measures.
Table of Contents
TOPIC
Chapter 1: Introduction & Background
- Methodology
- Methodological Notes
- Introduction to the 2007 Study
- Key LOHAS Insights
- 1-From Purchaser to Participant
- 2-Sustainable Style
- 3-Shades of Green for Everyone
- 4-Greenwashing Washout
- Explanation of the LOHAS Segmentation Model
- Change in Segment Sizes Between 2005 & 2007
- LOHAS Consumer Snapshot- Attitudes & Behaviors
- LOHAS Consumer Snapshot- Demographics
- LOHAS Consumer Snapshot- Lifestyle
- NATURALITES Snapshot- Attitudes & Behaviors
- NATURALITES Snapshot- Demographics
- NATURALITES Snapshot- Lifestyle
- DRIFTERS Snapshot-Attitudes & Behaviors
- DRIFTERS Snapshot-Demographics
- DRIFTERS Snapshot-Lifestyle
- CONVENTIONALS Snapshot-Attitudes & Behaviors
- CONVENTIONALS Snapshot-Demographics
- CONVENTIONALS Snapshot-Lifestyle
- UNCONCERNEDS Snapshot-Attitudes & Behaviors
- UNCONCERNEDS Snapshot-Demographics
- UNCONCERNEDS Snapshot-Lifestyle
- The Role of Personal versus Planetary Health
- The Multigenerational Impact of Baby Boomers
- LOHAS as Early Adopters
- A Global Perspective on LOHAS Consumers
Chapter 2: Grounding LOHAS Awareness and Key Characteristics
- Awareness of LOHAS-Related Terminology
- Awareness of Eco-Terminology by Generation
- Top of Mind Associations with the Term "Sustainability"
- Trends in Consumer Understanding of the Term "Sustainability"
- Is Environmentalism a Fad?
- Level of Concern About the Environment & Motivation
- Who' s Leading?
- A Focus on Global Warming: Awareness and Concern
- A Focus on Global Warming: Consumer & Corporate Action
- Blurring of Natural and Organic
- Attitudes Toward Social Issues
- Attitudes Toward Health and Wellness
- Societal Issues of Concern Among U.S. Consumers
- Societal Issues of Concern Among Segments
- Branding & Loyalty Dynamics
- Branding & Loyalty Among Segments
- Early Adoption
- Level of Influence on Others
- Trends in Price Sensitivity
- Price Sensitivity Among the Segments
- Environmental Apathy
- Empowering LOHAS Behavior
- The Role of Materialism
- A Multi-Cultural Look at the LOHAS Segmentation Model
- A Multi-Cultural Look at the LOHAS Marketplace
Chapter 3: Sources of Information
- Importance of Validation of Green Claims
- Recognition of Seals
- Trended Awareness of Seals
- Purchase Impact of Seals-Government & Non-Profit Organizations
- Purchase Impact of Seals-Corporate Initiated
- Awareness versus Purchase Impact of Labeling and Seals
- Media' s Role in Communicating About the Environment
- The Role of Self-Discovery
- Top Magazine Readership Patterns
- Other Media Sources
- The Impact of the Internet
- Specific Internet Site Patterns
- Summary of Environmental Sources of Influence
Chapter 4: LOHAS Lifestyles
- Trends in Consumer Actions to Protect the Environment
- Segments' Environmentally Conscious Behavior
- Detailed Recycling Behavior
- Recycling Behavior By Generation & Income
- It' s Election Time: LOHAS Consumers & Politics
- Organizational Memberships
- Charitable Donation Patterns
- The Importance of Building a Sense of Community
- The Role of Religion and Spirituality
- The Role of Physical Fitness
- Hobbies and Interests
- Meat Consumption Dynamics
- LOHAS Consumers are Not Healthy Across All Behaviors
- Premium Green/Eco-Luxury Attitudes
- Premium Green/Eco-Luxury By Income
Chapter 5: Views of Corporate Responsibility
- Importance of Corporate Citizenship
- Importance of Specific Types of Corporate Social Responsibility
- Behavioral Effects of CSR
- Trends in Behavioral Impact of CSR
- General Population Interest in Types of CSR
- Is the Devil in the Details?
- Trust in CSR: Fact or Fiction?
- Consumer Awareness of Specific Company CSR Strategies
Chapter 6: LOHAS Consumer Behavior
- Importance of Environmental Impact of Products
- Trends in the Importance of Products' Environmental Impact
- Interest in Green Products
- Eagerness for Green and the Market Opportunity
- Is Buying Green a Sacrifice or a "Feel Good?"
- Usage of LOHAS Fast-Moving Consumer Goods
- Trends in LOHAS Fast-Moving Consumer Goods
- LOHAS Segmentation of Organic Usage Over Time
- Bottled Water Backlash
- Perceived Environmental Friendliness of Packaging Materials
- Awareness, Understanding and Importance of Environmentally Friendly Packaging Terms
- Attitudes Toward Packaging of Products
- Expectations for Manufacturers on Environmentally-Friendly Packaging
- Usage of LOHAS Durable Products
- Trends in Usage of LOHAS Durable Products
- Usage of Alternative Healthcare
- Usage of LOHAS Services
- LOHAS Product Integration
- Barriers to Buying Environmentally-Friendly Products
- Changes in Barriers
- LOHAS Consumers-Retailer Shopping Patterns
- LOHAS Consumers-Secondary Retailers
- Segments Shop Differently
- Trends in LOHAS Shopping Patterns
- The Dynamics of Plastic Grocery Bags
- Role of the Internet in Selling LOHAS Products
Chapter 7: A Focus on Personal Care
- NMI Segment Composition of Natural and Organic Personal Care Users
- Conventional Product Attributes that Affect Personal Care Choices Among Users
- Relative Importance of Product Benefit Groupings that Affect Personal Care Choices
- Conventional Product Attributes that Affect Personal Care Choices Among Segments
- Ingredient-Based Product Benefits that Affect Personal Care Choices Among Users
- Ingredient-Based Product Benefits that Affect Personal Care Choices Among Segments
- Environmental/Social Product Attributes that Affect Personal Care Choices Among Users
- Trends in Product Benefits that Affect Personal Care Choices
- Natural and Organic Personal Care Purchases
- Other Personal Care Purchase Behaviors
- Other Personal Care Purchase Behaviors by Segment
- Trends in Personal Care Purchases
- Natural and Organic Personal Care Users' Mainstream Brand Usage
- Mainstream Brand Usage by Segment
- Natural and Organic Personal Care Usage of Natural/Organic Brands
- Natural/Organic Brand Usage by Segment
- Sources of Influence for Personal Care Products
