Hot Gossip > Emerging Markets for Sustainable Products
Research reveals emerging market for sustainable goods and services
A new consumer group, known as LOHAS (Lifestyles of Health and Sustainability), or Cultural Creatives, is emerging in the global market place. These consumers have strong concerns about human rights, fair trade, the environment, sustainable development and personal development. They want to integrate their values with the products and services they buy and use.
In the United States these consumers represent 32.3% of the adult US population, and recent research shows further market growth. The products and services they are interested in represent $227 billion in the marketplace (estimated $540 billion worldwide).
Research undertaken (by Moxie Design Group and TNS Research) in New Zealand showed that 26% of New Zealand respondents showed a similar demographic profile to this market.
The key characteristics of these consumers are:
- They will buy products and services from companies with values like their own
- They are willing to pay up to 20% more for sustainably made products
- They are marketing savvy, and will tend to buy products endorsed by word-of-mouth rather than by traditional advertising and promotion
This emerging market for sustainable goods and services is yet another incentive to move your business in a sustainable direction.
Some areas business could build on in this market are:
- The anticipation of future consumer buying habits
- The ability to establish fiercely brand loyal consumers
- The opportunity to charge premium prices for sustainably produced goods and services.
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