Market Insights from Top Researchers: The Latest Intelligence on Customer Attitudes and Behavior

1. Steven French | @NMITWEETS
Natural Marketing Institute
Market Insights from Top Researchers: The Latest
Intelligence on Customer Attitudes and Behavior
Raphael Bemporad | @rbemporad
BBMG
Dorothy Mackenzie | @DragonRogueUK
Dragon Rogue
Lucy Shea | @swishinglucy
Futerra
Kristoph Kahlert
Serviceplan Corporate Reputation
Dan Gavshon Brady | @DanBG88
Wolff Colins

2. 1©
2014,
Natural
Marke1ng
Ins1tute
Global
Sustainability
Trends:
Opportuni5es
&
Challenges
SB
London
2015
Steve
French,
NMI
Managing
Partner
16
November
2015

3. 2©
2015,
Natural
Marke1ng
Ins1tute
(NMI)
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Sustainability
• 200
LOHAS-­‐related
aDtudes,
drivers
to
consumer
behavior
• Usage
paKerns
across
industries,
product
categories
and
brands
• Behavior/demos
related
to
green
ac1vi1es,
including
memberships
and
non-­‐profit
dona1ons
• Informa1on
sources
Covers
15
market
sectors
• CPG
• Green
Building
• Transporta1on
• Electronics
• Inves1ng
• Energy
• Eco-­‐Travel
• Eco-­‐Apparel
• Pet
Care
• Others
LOHAS
Consumer
Trends
Database®
Since
2002
Data
Source:
NMI’s
Global
LOHAS
Consumer
Trends
Database®
Scope:
§ Annual
tracking
study
in
U.S.
since
2002
and
globally
since
2005
§ Quan1fies
the
size
of
the
consumer
market
for
environmentally
and
socially
responsible
products
and
services
§ Measures
the
importance
of
environmental
and
societal
issues
as
well
as
corporate
social
responsibility
§ Explores
the
“why’s”
behind
environmentally
conscious
behavior
§ Determines
consumer
usage
of
sustainable
products
and
services
Methodology:
§ Conducted
in
23
countries
§ Based
on
150,000+
consumer
interviews
§ NaSonally
representaSve
in
each
country

4. 3©
2015,
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• This
research
classified
9
countries
studied
into
Developed
and
Emerging
in
order
to
beKer
understand
the
‘developmental
stage’
of
the
country,
thereby
laying
the
groundwork
for
why
differences
in
aDtudes
and
behaviors
may
exist.
Emerging
countries
-­‐
Brazil,
China,
India,
Russia,
South
Africa
Developed
countries
-­‐
Germany,
Japan,
UK,
US
Developed
vs.
Emerging
Perspec1ve
Developed
countries
US
UK
Germany
Japan
Emerging
countries
Russia
China
India
Brazil
S.
Africa

5. 4©
2015,
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Most
consumers
feel
that
the
environmental
‘buzz’
is
not
a
temporary
fad,
but
is
here
to
stay
Developed
countries
Emerging
countries
2013
%
total
growth
(2010-­‐2013)
Russia
72%
112%
Brazil
71%
-­‐4%
China
69%
-­‐5%
South
Africa
62%
N/A
UK
57%
19%
Germany
57%
21%
U.S.
52%
4%
India
52%
2%
Japan
33%
-­‐18%
Top
3
countries
who
believe
environmental
‘movement’
is
here
to
stay
Russia
appears
to
be
‘buying-­‐in’
on
a
much
higher
level
than
in
the
past,
while
Japan
is
s1ll
on
the
fence.

6. 5©
2015,
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Brazil
China
Germany
India
Japan
Russia
SA
UK
0%
20%
40%
60%
80%
0%
20%
40%
60%
80%
100%
Socially
responsible
business
ProtecSng
the
environment
Most
Emerging
countries
(except
Russia)
care
strongly
about
environmental
protec1on
and
socially
responsible
business,
while
the
Developed
markets
less
so
%
consumers
who
care
about…
Size
of
bubble
is
determined
by
popula1on
of
each
country;
emerging
country
popula1on
is
adjusted
for
urban
popula1on
based
on
sta1s1cs
from
the
Human
Development
Report
Office
(HDRO),
2012
US
Developed
countries
Emerging
countries

7. 6©
2015,
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(NMI)
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Many
consumers
also
feel
they
are
‘very’
informed
about
how
to
live
an
eco-­‐
friendly
and
green
lifestyle
Not
at
all
informed
Very
well
informed
UK
(28%)
China
(52%)
India
(60%)
Russia
(44%)
Brazil
(58%)
S.
Africa
(35%)
Germany
(31%)
Japan
(10%)
%
countries
indica1ng
they
feel
‘VERY’
informed
about
how
to
live
an
eco-­‐friendly
and
green
lifestyle
U.S.
(32%)
Japan,
UK
and
Germany
lag
behind,
perhaps
highligh1ng
countries
where
educa1onal
opportuni1es
exist.
Developed
countries
Emerging
countries

8. 7©
2015,
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Choosing
sustainable
or
e-­‐friendly
products
over
conven1onal
ones
has
shown
some
substan1al
increases
since
2010
48%
53%
50%
42%
43%
44%
42%
44%
42%
36%
34%
34%
New,
Preliminary
2015
Data
2014
2013
2012
2011
2010
I
will
choose
those
products
and
services
that
are
environmentally-­‐friendly
I
will
choose
products
from
sustainable
sources
over
other
conven1onal
products
%
U.S.
General
Popula1on
indica1ng…
“When
given
the
choice
to
buy
or
use
a
product
or
service…”

9. 8©
2015,
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%
countries
who
indicate
when
it
comes
to
purchasing
products
or
services….
“I
prefer
to
purchase
products
that
are
manufactured
in
a
sustainable
manner
(meaning
in
an
environmentally
friendly
and
socially
conscious
way)”
Preference
for
sustainably-­‐made
products
is
substan1al,
especially
among
the
Emerging
Countries
China
India
Brazil
SA
US
Germany
UK
Russia
Japan
87%
79%
75%
66%
57%
55%
54%
53%
46%
Emerging
Developed
88%
84%
80%
52%
65%
69%
40%
Percentages
in
red
are
2010
percentages
53%

10. 9©
2015,
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Brazil,
China
and
India
are
extremely
opportunis1c
as
they
exhibit
increasingly
strong
e-­‐friendly
behaviors
34%
40%
36%
10%
7%
26%
12%
13%
46%
51%
41%
22%
17%
7%
27%
11%
13%
Brazil
China
India
SA
Germany
Japan
Russia
UK
US
2010
2013
%
countries
who
completely
agree:
“I
buy
as
many
green,
eco-­‐friendly
products
as
I
can”

11. 10©
2015,
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(NMI)
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Sustainability
has
broad
impact
across
brand
appeal;
be
sure
to
tell
your
whole
brand
story
when
communica1ng
with
consumers
%
U.S.
General
Popula1on
indica1ng…
“Knowing
that
a
company
is
mindful
of
its
impact
on
the
environment
and
society
makes
me…”
CAG
’09-­‐’14:
4.3%
2.6%
2.4%
2.0%
more
likely
to
try
their
products
or
services
more
likely
to
buy
their
products
repeatedly
more
likely
to
talk
with
my
friends
and
family
about
the
company
less
concerned
with
the
price
of
their
products
58%
53%
45%
30%

12. 11©
2015,
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Millennials
are
a
highly
influen1al
group
and
are
strong
seekers
and
biggest
purchasers
of
e-­‐friendly
products
Millennials
Gen
X
Boomers
Matures
42%
35%
30%
36%
30%
23%
17%
21%
26%
20%
15%
19%
Seek
Find
Purchase
Always/ojen…
%
U.S.
Consumers
indica1ng
how
open
they
look
for,
find
and
purchase
e-­‐friendly
products
Significantly
more
than
all
other
genera1ons

13. 12©
2015,
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China
Brazil
India
SA
Russia
Germany
US
UK
Japan
more
likely
to
try
their
products
or
services
85%
80%
76%
73%
72%
61%
60%
52%
46%
more
likely
to
buy
their
products
repeatedly
82%
76%
76%
68%
65%
59%
56%
48%
48%
less
concerned
with
the
price
of
their
products
44%
63%
61%
38%
37%
38%
30%
29%
19%
%
countries
who
agree
that
“knowing
that
a
company
is
mindful
of
its
impact
on
the
environment
and
society
makes
them…”
Corporate
social
responsibility
has
far-­‐reaching
implica1ons
regarding
trial,
con1nued
use,
and
perceived
value
Denotes
high
index
vs.
Total
Countries
(≥
120)
Denotes
low
index
vs.
Total
Countries
(≤
80)
The
US,
UK
and
Japan,
while
impacted
posi1vely
by
a
company’s
CSR
efforts,
s1ll
show
price
sensi1vity,
regardless
of
a
company’s
social
responsibility

14. 13©
2015,
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20%
30%
40%
50%
60%
70%
80%
90%
100%
China
SA
India
Brazil
Germany
Russia
US
UK
Japan
Quality
Price
Convenience
Anything
%
countries
who
indicate
“I
do
not
want
to
sacrifice…
when
buying
environmentally-­‐friendly
products”
Environmentally-­‐made
products
cannot
concede
on
quality
or
price,
as
consumers
are
not
willing
to
sacrifice
these
aKributes
Emerging
Developed

15. 14©
2015,
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%
U.S.
General
Popula1on
who
agree
with
the
following
statements…
Willingness
to
pay
a
premium
for
environmentally-­‐friendly
products
is
back
on
par
with
pre-­‐recessionary
levels,
however,
most
consumers
s1ll
primarily
price-­‐driven
28%
30%
17%
15%
16%
16%
13%
27%
29%
27%
54%
61%
69%
68%
69%
68%
70%
63%
63%
64%
2006
2007
2008
2009
2010
2011
2012
2013
2014
New,
Preliminary
2015
Data
I
am
willing
to
pay
20%
more
for
products
which
are
made
in
an
environmentally
friendly
and
sustainable
way
I
care
about
the
environment,
but
my
purchase
is
determined
mainly
by
price

16. 15©
2015,
Natural
Marke1ng
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(NMI)
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As
consumer
aDtudes
and
behaviors
surrounding
sustainability
con1nue
to
grow,
companies
involved
in
the
green
and
sustainable
marketplace
should
also
see
a
growth
in
return
on
investment
Feel
more
responsible
for
protecSng
environment
Sustainability
is
here
to
stay
Sustainable
ini1a1ves
boost
ROI
Impact
of
CSR
on
trial
and
purchase
is
growing
Consumers’
“green”
aDtudes
are
growing……

17. 16©
2015,
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The
U.S.
sustainability
consumer
market
will
grow
to
$1.5
trillion
by
2020
2005
(US$
MM)
2012
(US$
MM)
2020
(US$
MM)
AlternaSve
Energy
$607
$700
$820
AlternaSve
TransportaSon
$6,121
$185,045
$572,440
Green
Building
$35,401
$55,722
$116,684
Natural
Lifestyles
$5,394
$6,394
$8,913
Organic
Comon/Natural
Fiber
&
TexSle
$4,018
$7,545
$8,756
Personal
Health
$25,140
$36,980
$47,148
Ecotourism
$24,200
$144,200
$416,929
Electronics/
Appliances
$39,902
$119,491
$161,648
Consumer
Packaged
Goods
$57,271
$104,664
$191,087
Grand
Total
$198,054
$660,740
$1,524,425

18. 17©
2015,
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Closing
Thoughts
ü Consumers,
especially
those
in
developed
countries,
need
guidance
on
how
to
lead
an
eco-­‐friendly
lifestyle
ü Sustainability
is
not
just
a
fad,
but
a
global
ship
that
is
here
to
stay
ü Sustainability
has
broad
impact
across
brand
appeal
and
CSR,
especially
in
emerging
countries
ü Many
consumers
want
products
manufactured
in
a
sustainable
manner
-­‐
product
labeling
is
vital
ü Sustainable
ac1on
can
no
longer
be
considered
a
nice
to
have
–
globally,
consumers
expect
it
ü No
compromise
exists
–
consumers
not
willing
to
sacrifice
quality,
price
or
convenience
for
sustainability

19. 18©
2015,
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Natural
MarkeSng
InsStute
(NMI)
272
Ruth
Road
Harleysville,
PA
USA
19438
Steve
French
Managing
Partner
Steve.French@NMIsoluSons.com
+1
215
513
7300
x214
www.NMIsoluSons.com
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materials
herein
are
©
2013-­‐2015
by
NMI
(Natural
Marke1ng
Ins1tute).
All
rights
reserved.
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