echo ) ) ) earthsense

Volume 3

March 26, 2009  

Walking the Growing “Green Aisle” With US Consumers

by Wendy Cobrda, Earthsense President & Founder

Preserving options for future generations is the focus of today’s green movement. That translates into incorporating practices and materials that meet product quality goals and minimally impact the environment. In practical terms, understanding how consumers perceive “green” is key to moving product in the growing green aisle.top 5 green supermarket products cosumers will pay a premium for

Defining Green. “Eco-friendly” generally refers to products with one or more of these characteristics:

  • Made of environmentally friendly, natural or recycled materials
  • Free from harmful chemicals
  • Does not deplete the environment during production or transportation
  • Produced under humane working conditions
  • Supports healthy environments

Indeed, these broad standards leave lots of room for interpretation, and that can leave corporate decision-makers wondering how far they must go to be green. Their consumers, however, can help–they rely on a variety of factors to judge product eco-sensibility and to make buying decisions.

Six Green Facets. More than 30,000 U.S. adults told Earthsense what green means to them. Their responses clustered around six concepts:

Composition
What is (and isn’t) in the product:

Food products without strong pesticides or added chemicals
Animal-based products without artificial growth hormones
Use of recycled materials and biodegradable formulations

Production
How the product is processed/manufactured:

Protects natural resources (air, water, power, etc.)
Fair trade labor practices
Humane treatment of animals

Packaging
How packaging minimizes waste:

Use of recyclable materials
Use of materials without harmful chemicals
Use of reusable/refillable containers (Note: this scores big among consumers concerned with packaging.)

Distribution
How materials get to manufacturers and how products get to consumers:

Distance and transportation of source materials to manufacturers
Distance and transportation of product is delivered to consumers
Use of local materials when possible

Consumption
How product is used:

Amount of energy use requires
Formula condensed to reduce container size and shipping charges

Disposal
How it’s disposed after use:

If product can be recycled
If it’s biodegradable

Eco-Insights Survey results show that the importance of these concepts differs by category. For example, when asked about yogurt, consumers focused on composition: products free of hormones and chemicals. However, when considering laundry detergent, concerns shifted to disposing plastic containers and saving energy with cold water and concentrated formulas.

Takeaway: Focus green messaging on the concept most understood by–and most important to–the consumer.

Bring On The Green. All products – green included – have different levels of elasticity when it comes to pricing. Green versions of soup, yogurt, coffee and poultry have a substantial percentage of consumers willing to pay a premium. Soup and poultry buyers are most likely to mention health and environmental benefits when referring to green purchases while yogurt buyers are most likely to cite quality.

There are consumers for all products who will pay a premium if their needs are met. The key of course, is to find that group and to emphasize why your product is “healthier,” “better for the planet,” “perfect for your lifestyle,” etc.

Takeaway: Resist the urge to generalize. Translate benefits associated with different products into messaging that puts price in perspective.

You Are Where You Shop. Grocery stores – whether supermarkets or specialty players – constantly test new ways to appeal to consumers. Particular combinations of selection, service and messaging create store “personalities” that generate sales among particular types of customers.

Some product categories’ propensities in certain stores are obvious; others are surprising. For example, although green produce and light bulbs are the most frequently mentioned items purchased among total adults, nearly two-thirds of Whole Food customers report buying green produce compared to 40% of ShopRite customers. Differences between category purchases at different stores become more telling when you dive deeper into the data. For instance, soy and other non-dairy products, milk/cream and organic meat, poultry and seafood are purchased by Whole Food customers at a higher rate than ShopRite consumers, but ShopRite customers score higher on green household cleaners, detergents and paper products.

Takeaway: Increase success of product promotions by evaluating green products purchased in different stores. Use insights on purchase motivations and barriers to build marketing plans.

These findings are based on a sampling of Earthsense research results. To learn more about consumer attitudes toward the Growing “Green Aisle,” please contact our Green Team.