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Understanding the LOHAS Consumer

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Understanding the LOHAS Consumer S I X T H E D I T I O N Understanding the LOHAS Market™ Report Consumer insights into the role of sustainability, health, the environment and social responsibility. www.NMIsolutions.com March 2008 Understanding The LOHAS MarketTM Report The Series: Including A Focus on CSR, A Focus on Foods & Beverages, and A Focus on Personal Care Published by: Natural Marketing Institute (NMI) March 2008 Understanding The LOHAS Market Report TABLE OF CONTENTS TOPIC PAGE Chapter 1: Introduction & Background (continued) Chapter 1: Introduction & Background The Multigenerational Impact of Baby Boomers 31 Methodology 6 LOHAS as Early Adopters 32 Methodological Notes 7 A Global Perspective on LOHAS Consumers 33 Introduction to the 2007 Study Chapter 2: Grounding LOHAS Awareness and Key Key LOHAS Insights 8 Characteristics 1-From Purchaser to Participant 9 Awareness of LOHAS-Related Terminology 34 2-Sustainable Style 10 Awareness of Eco-Terminology by Generation 35 3-Shades of Green for Everyone 11 Top of Mind Associations with the Term “Sustainability” 36 Trends in Consumer Understanding of the Term 4-Greenwashing Washout 12 37 Explanation of the LOHAS Segmentation Model 13 “Sustainability” Change in Segment Sizes Between 2005 & 2007 14 Is Environmentalism a Fad? 38 LOHAS Consumer Snapshot- Attitudes & Behaviors 15 Level of Concern About the Environment & Motivation 39 LOHAS Consumer Snapshot- Demographics 16 Who’s Leading? 40 LOHAS Consumer Snapshot- Lifestyle 17 A Focus on Global Warming: Awareness and Concern 41 NATURALITES Snapshot- Attitudes & Behaviors 18 A Focus on Global Warming: Consumer & Corporate Action 42 NATURALITES Snapshot- Demographics 19 Blurring of Natural and Organic 43 NATURALITES Snapshot- Lifestyle 20 Attitudes Toward Social Issues 44 DRIFTERS Snapshot-Attitudes & Behaviors 21 Attitudes Toward Health and Wellness 45 DRIFTERS Snapshot-Demographics 22 Societal Issues of Concern Among U.S. Consumers 46 DRIFTERS Snapshot-Lifestyle 23 Societal Issues of Concern Among Segments 47 CONVENTIONALS Snapshot-Attitudes & Behaviors 24 Branding & Loyalty Dynamics 48 CONVENTIONALS Snapshot-Demographics 25 Branding & Loyalty Among Segments 49 CONVENTIONALS Snapshot-Lifestyle 26 Early Adoption 50 UNCONCERNEDS Snapshot-Attitudes & Behaviors 27 Level of Influence on Others 51 UNCONCERNEDS Snapshot-Demographics 28 Trends in Price Sensitivity 52 UNCONCERNEDS Snapshot-Lifestyle 29 Price Sensitivity Among the Segments 53 The Role of Personal versus Planetary Health 30 Environmental Apathy 54 Table of Contents Page 2 © Natural Marketing Institute (NMI), 2007. All Rights Reserved. Understanding The LOHAS Market Report Chapter 2: Grounding Awareness and Key Characteristics Chapter 4: LOHAS Lifestyles (continued) (continued) The Importance of Building a Sense of Community 79 Empowering LOHAS Behavior 55 The Role of Religion and Spirituality 80 The Role of Materialism 56 The Role of Physical Fitness 81 A Multi-Cultural Look at the LOHAS Segmentation Model 57 Hobbies and Interests 82 A Multi-Cultural Look at the LOHAS Marketplace 58 Meat Consumption Dynamics 83 Chapter 3: Sources of Information LOHAS Consumers are Not Healthy Across All Behaviors 84 Importance of Validation of Green Claims 59 Premium Green/Eco-Luxury Attitudes 85 Recognition of Seals 60 Premium Green/Eco-Luxury By Income 86 Trended Awareness of Seals 61 Chapter 5: Views of Corporate Responsibility Purchase Impact of Seals-Government & Non-Profit 62 Importance of Corporate Citizenship 87 Organizations Importance of Specific Types of Corporate Social Responsibility 88 Purchase Impact of Seals-Corporate Initiated 63 Impact of CSR Among Green Product Buyers 89 Awareness versus Purchase Impact of Labeling and Seals 64 Behavioral Effects of CSR 90 Media’s Role in Communicating About the Environment 65 Effects of CSR Among Segments 91 The Role of Self-Discovery 66 The Importance of CSR by Education Level 92 Top Magazine Readership Patterns 67 Trends in Behavioral Impact of CSR 93 Other Media Sources 68 Impact of CSR on Each Segment’s Behavior 94 The Impact of the Internet 69 Impact of CSR by Product Users 95 Specific Internet Site Patterns 70 General Population Interest in Types of CSR 96 Summary of Environmental Sources of Influence 71 Specific CSR Interest 97 Chapter 4: LOHAS Lifestyles Interest in Specific Environmental Issues 98 Trends in Consumer Actions to Protect the Environment 72 Is the Devil in the Details? 99 Segments’ Environmentally Conscious Behavior 73 Trust in CSR: Fact or Fiction? 100 Detailed Recycling Behavior 74 Trust in CSR-by Segments 101 Recycling Behavior By Generation & Income 75 Consumer Awareness of Specific Company CSR Strategies 102 It’s Election Time: LOHAS Consumers & Politics 76 Sources of Influence for CSR 103 Organizational Memberships 77 Importance of Environmental Impact of Products 104 Charitable Donation Patterns 78 Table of Contents Page 3 © Natural Marketing Institute (NMI), 2007. All Rights Reserved. Understanding The LOHAS Market Report Chapter 6: LOHAS Consumer Behavior Chapter 7: A Focus on Foods & Beverages Trends in the Importance of Products’ Environmental Impact 105 Organic Food Users by NMI Segmentation Composition 130 Interest in Green Products 106 Usage of Organic and Natural Foods & Beverages 131 Eagerness for Green and the Market Opportunity 107 Usage of Healthy Food Categories Among the General 132 Is Buying Green a Sacrifice or a “Feel Good?” 108 Population Usage of LOHAS Fast-Moving Consumer Goods 109 Food & Beverage Purchases Among Organic Food Users 133 Trends in LOHAS Fast-Moving Consumer Goods 110 Food & Beverage Purchases Among NMI Segments 134 LOHAS Segmentation of Organic Usage Over Time 111 Specific Organic Food Usage Patterns 135 Bottled Water Backlash 112 Organic Food & Beverage Purchases Among NMI Segments 136 Perceived Environmental Friendliness of Packaging Materials 113 Length of Time Using Organic Foods & Beverages 137 Awareness, Understanding and Importance of Environmentally Trends in Health Related Food & Beverage Benefits 138 114 Friendly Packaging Terms Trends in Environmental, Sustainable and CSR Related Food & 139 Attitudes Toward Packaging of Products 115 Beverage Benefits Expectations for Manufacturers on Environmentally-Friendly Differentiating Healthy Food Selection Criteria for LOHAS and 116 140 Packaging NATURALITES Usage of LOHAS Durable Products 117 Environmental Criteria Differences Among Organic Food Users 141 Trends in Usage of LOHAS Durable Products 118 Relative Importance of Food and Beverage Criteria 142 Usage of Alternative Healthcare 119 Taste and Safety Perceptions of Organic Foods 143 Usage of LOHAS Services 120 Mainstream Brand Usage Among Segments 144 LOHAS Product Integration 121 Natural/Organic Brand Usage Among Segments 145 Sources of Influence for Foods and Beverages Among General Barriers to Buying Environmentally-Friendly Products 122 146 Changes in Barriers 123 Population LOHAS Consumers-Retailer Shopping Patterns 124 Sources of Influence for Foods & Beverages Among LOHAS 147 LOHAS Consumers-Secondary Retailers 125 Chapter 8: A Focus on Personal Care NMI Segment Composition of Natural and Organic Personal Segments Shop Differently 126 148 Care Users Trends in LOHAS Shopping Patterns 127 Conventional Product Attributes that Affect Personal Care The Dynamics of Plastic Grocery Bags 128 149 Choices Among Users Role of the Internet in Selling LOHAS Products 129 Table of Contents Page 4 © Natural Marketing Institute (NMI), 2007. All Rights Reserved. Understanding The LOHAS Market Report Chapter 8: A Focus on Personal Care (continued) Relative Importance of Product Benefit Groupings that Affect 150 Personal Care Choices Conventional Product Attributes that Affect Personal Care 151 Choices Among Segments Ingredient-Based Product Benefits that Affect Personal Care 152 Choices Among Users Ingredient-Based Product Benefits that Affect Personal Care 153 Choices Among Segments Environmental/Social Product Attributes that Affect Personal 154 Care Choices Among Users Trends in Product Benefits that Affect Personal Care Choices 155 Natural and Organic Personal Care Purchases 156 Other Personal Care Purchase Behaviors 157 Other Personal Care Purchase Behaviors by Segment 158 Trends in Personal Care Purchases 159 Natural and Organic Personal Care Users’ Mainstream Brand 160 Usage Mainstream Brand Usage by Segment 161 Natural and Organic Personal Care Usage of Natural/Organic 162 Brands Natural/Organic Brand Usage by Segment 163 Sources of Influence for Personal Care Products 164 Table of Contents Page 5 © Natural Marketing Institute (NMI), 2007. All Rights Reserved. Understanding The LOHAS Market Report 2007 LOHAS Consumer Trends Database™ The methodology is designed to best assist marketers and strategic planners in providing meaningful insight to current consumers of green Methodology products, and those who may be consuming in the future. The summary This report is Natural Marketing Institute’s (NMI’s) sixth annual project scope and content include: research study and respective analysis of the U.S. LOHAS (Lifestyles Of Health And Sustainability) consumer and marketplace. This study is • Over 200 LOHAS-related attitudes and beliefs designed to measure and describe the marketplace for LOHAS products, • Usage of over 100 products and services in 10 industries the consumer segments that use them, consumers’ expectations of • Usage of 100+ brands corporate environmental sustainability, and attitudes toward • Product benefits or purchase drivers for multiple products and environmental and social issues.
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