Green Continues to Be Good for Retailers

Mintel research shows consumers continue to buy natural, despite difficult economy.

March 29, 2010

CHICAGO - A new Mintel report released last week reveals that the environment remains a concern for the majority of Americans, with 35% of survey respondents saying that they would pay more for environmentally friendly products.

"Given this increased interest in the environment over the past few years, nearly every segment of consumer products now offers a 'green?? option for shoppers," said Chris Haack, Mintel senior analyst. "Food and beverage and personal care are the two most mature categories and account for the majority of green products in the marketplace."

Despite a recession that took a heavy toll on nearly every sector of the consumer goods marketplace, natural and organic food experienced a 1.8% growth last year, a sharp drop from its 24% sales growth from 2006-08. Mintel expects the segment to growth nearly 20% from 2010 to 2012.

Organic food buyers are category loyal, as only 21% reduced or eliminated organic purchasing, while 20% switched to less expensive organic options. Forty-eight percent reported buying as much or more organic food than before the recession.

In the personal care category, sales increased 1.2% last year, compared to 18% from 2006-08. Mintel predicted this segment to resume "rapid growth" as consumer spending recovers. And nearly one-third of consumers said that they have never tried organic or natural personal care products, which Mintel concluded bodes well for category growth potential.

Check out the NACS resources that target green initiatives.

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