Mar 11, 2009

Proud Traditionalists’ Drive Green SalesBy Elaine WongBrandWeek.com

Contrary to popular belief, sales of green products are not tanking in a down economy and it’s not the diehard enthusiasts who are buying these products either, according to a new report by market research firm Information Resources Inc.

IRI tracked consumer-purchasing behavior in key green segments, including eco-friendly, organic and commodities produced through Fair Trade agreements. It found that sales of green products are up 4.1 percent, driven mostly by price increases, as unit sales in this category dropped 6.6 percent in 2008.

The report, titled Sustainability: CPG Marketing in a Green World, further divided green consumers into eight groups:

• Eco-centrics—the most adamant supporters of green products
• Eco-villains—those who dismiss environmental concerns
• Respectful stewards—those who are willing to pay more for green products
• Proud traditionalists—those who buy green to save money
• Eco-chic—those who see green as fashionable
• Frugal earth mothers—women who save money when possible, and look for “good and wholesome” products
• Skeptical individuals—highly educated, high income men who question the benefits of green products
• Green naives—predominantly young, lower-income shoppers who have not linked the cause and effect relationship of environmental responsibility

Eco-centrics, also dubbed “green extremes,” are not the primary buyers of green products, per the report. Spending on green products among this group held steady, while respectful stewards and proud traditionalists upped their spending on all things green by 15.5 and 8.4 percent, respectively. Meanwhile, unit sales among eco-centric consumers fell 6.6 percent, while the latter two groups posted an increase.

The discrepancy is consistent with current consumer purchasing behavior, said Sue Viamari, editor of IRI’s Times & Trends report, from which this study is taken.

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