HerbalEGram: Volume 5, Number 2, February 2008

A recent survey conducted by Information Resources Inc. (IRI), a leading supplier of consumer and retail market data, has determined that many US consumers consider sustainability factors when selecting consumer packaged goods (CPG).¹

According to the survey’s results, approximately 50% of US consumers consider at least 1 sustainability factor—such as whether a product is organic, eco-friendly, has eco-friendly packaging, and/or notes fair treatment of employees and suppliers—when making product selections or choosing their shopping destinations.² Each of the 4 sustainability factors mentioned in the survey was determined to be important to at least one-fifth of the approximately 22,000 surveyed consumers, with organic products demonstrating the greatest appeal. Organic brands were claimed to be a shopping consideration by 39% of surveyed consumers. One-fifth of those surveyed claimed to take at least 2 sustainability factors into consideration when choosing brands or stores.

“Sustainability has evolved from a niche segment concern to a major factor influencing purchasing and shopping behavior across a sizeable consumer base,” said IRI Chief Marketing Officer Andrew Salzman, according an IRI press release.¹ “Our survey indicates that consumers are focused more and more on the social and environmental impact of their CPG purchases, creating a viable and growing US market for sustainable products and packaging with the potential to mirror well-developed markets in Europe and Japan. US retailers and manufacturers are beginning to respond to that demand.”

Sustainability factors can influence consumers’ selection of both food and non-food items.² According to IRI, although the market for green products is still very small, there was a 66% increase in the sales of eco-friendly laundry detergent and a 28% increase in the sales of green household cleaners over the past year.

Sustainability factors appear to be particularly important to older consumers, as the survey found that older shoppers were the most likely audience to consider multiple sustainability issues when selecting purchases.

“Consumers aged 55 and older are the real driving force behind this expansion,” said Salzman.¹ “Generally, with the time to seek out specialty items and the resources to afford premium priced products, aging consumers are a critical target market today. As sustainable products and packaging become more widely available, we anticipate that the market will expand across consumer segments.”

IRI’s “Times and Trends” report featuring the survey data on sustainability trends is available online at: http://us.infores.com/filelib/timestrends/TT_December_2007_Sustainability.pdf.

—Courtney Cavaliere

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