Ethical Food and Beverage, Personal Care and Household Products in the U.S.; Conscientious Consumerism and Corporate Responsibility in the New Economy, 2nd Edition

Oct 1, 2009
348 Pages - Pub ID: LA1939948
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Despite the economic downturn of 2008-2009, ethical grocery products are continuing to make headway in the market, especially when contrasted with the relatively flat market for conventional groceries. Indeed, by many accounts, consumer demand is steadily increasing for products that fulfill eco-friendly, natural, organic, local, humane, and fair trade criteria. Major marketers and retailers are increasingly tapping into this trend by offering more ethical products, upping their corporate responsibility efforts through energy-efficient “green” facilities and sustainable business practices, and increasing their associated cause-related marketing efforts.

Underpinning market advancement is ongoing strong consumer demand for products perceived to be healthier and safer. According to Packaged Facts’ February 2009 consumer poll, approximately one-fourth of U.S. adult shoppers frequently buy certified organic food or beverage products, and one-third are usually willing to pay more for organic foods—even in the midst of economic recession. Featuring exclusive consumer data from this survey, the report homes in on food and non-food purchasing trends as well as attitudes and demographic characteristics of ethical product purchasers.

Building on the analysis presented in the previous edition, the report also examines key issues and trends affecting the marketplace across two classifications—Foods & Beverages, and Non-Food Products—with the latter defined as encompassing personal care products (cosmetics, skin care, hair care, etc.) and household products (paper goods, diapers, detergents, cleaning products, light bulbs, etc.). Coverage includes historical and projected retail sales estimates from 2005 through 2014, case studies of key marketers and retailers, and trends in new product development and competitive positioning. Also covered are government regulations and certifying organizations, mergers and acquisitions, retail trends, eco-conscious demographic profiles, and international trends.

Additional data sources include Information Resources, Inc.’s InfoScan Review for the mass-market channel, Datamonitor Product Launch Analytics data tracking new product introductions, and Experian Simmons data profiling consumer attitudes and product purchasing behavior.

Read an excerpt from this report below.

Chapter 1: Executive Summary
Scope & Methodology
Focus on Food and Non-Food Products
Report Methodology
Key Ethical Issues
International Trends
Organic Agriculture More than Doubles
Ethical Consumerism Mostly in Developed Nations
Ethical Consumerism Strong in the U.K.
Global Ethical Product Launches Top 5,100
U.S. Market Size and Composition
Retail Sales of Ethical Products at a Record High
Food and Beverage Classification Dominates Retail Sales
Natural Foods Channel Generates Almost Half of Retail Sales
Figure 1-1: Share of U.S. Ethical Products Retail Sales by Classification, 2005 vs. 2009 (percent)
Market Outlook
A Greener Administration
LOHAS: A Potent and Growing Consumer Base
Consumers Expect Corporate Responsibility
Consumers Willing to Pay More for Sustainability
Major Corporations Getting More Involved
Cause Marketing Takes Off
Healthy Sales Growth Projected Through 2014
Competitive Overview
Top Ethical Product Marketers
Acquisitions Yield Consolidation, Credibility Issues
The Most Ethical Companies and Brands
Over 2,100 New U.S. Products Annually Bear Ethical Claims
Organic, Natural Lead New Product Claims
Figure 1-2: Top 10 Ethical Claims by Number of U.S. Ethical Product Launches, 2005, 2008 and 2009
Natural Supermarkets Set the Pace
Consumer Overview
Three Out of Four Consumers Believe Companies Should Act Ethically
Over One-Third of Shoppers Willing to Pay More for Eco-Friendly Products
Financial Setback Spur Doing the Right Thing


Chapter 2: Market Overview
Scope & Methodology
Scope of Report: Focus on Food and Non-Food Products
Report Methodology
Key Ethical Issues
Definition of Organic Strictly Regulated
No Set Definition for “Locally Grown”
Humane Treatment of Animals
No Animal Testing/Cruelty-Free
Fair Trade or Ethically Sourced
Green/Eco-Friendly
Corporate Responsibility and Sustainability
The Global Reporting Initiative
Governmental and Non-Governmental Criteria and Certification
Consumers Union Lists 150 Different “Eco-Labels”
International Trends
Organic Agriculture More than Doubles Since 2000
Ethical Consumerism Mostly in Developed Nations
Global Consumer Attitudes and Actions
Ethical Consumerism Strong in the U.K.
U.K. Fairtrade Sales Exceed USA’s
Carbon Footprint Labeling
Global Ethical Product Launches Top 5,100
Table 2-1: Global Number of Ethical Product Launches, 2005-2009
U.S., U.K., Germany and Canada Lead in Ethical Product Launches
Table 2-2: Top 10 Countries by Number of Ethical Product Launches, 2005-2009*
The Body Shop and Hain Celestial Out Front in Ethical Product Introductions
Organic and Natural Are Top Global Ethical Claims
Table 2-3: Top 20 Global Marketers by Number of Ethical Product Launches, 2005-2009
Figure 2-1: Top Ethical Claims by Number of Global Ethical Product Launches, 2005, 2008 and 2009
New Global Product Notables
U.S. Market Size and Composition
Retail Sales of Ethical Products at a Record High
Table 2-4: U.S. Retail Sales of Ethical Products, 2005-2009 (in millions of dollars)
Food and Beverage Classification Dominates Retail Sales
Figure 2-2: Share of U.S. Retail Sales of Ethical Products by Classification, 2005 vs. 2009 (percent)
Natural Foods Channel Generates Almost Half of Retail Sales
Figure 2-3: Share of U.S. Retail Sales of Ethical Products by Channel, 2009 (percent)
Market Outlook
Impact of Recession
A Greener Administration
LOHAS: A Potent and Growing Consumer Base
Other Concerns Outweigh Ethical Issues
Consumers Expect Corporate Responsibility
Consumers Willing to Pay More for Sustainability
Table 2-5: Consumer Price Index for Food at Home, Personal Care Products, and Housekeeping Supplies: 1999-2009
Major Corporations Getting More Involved
Greenwashing Rampant
Consumers Need More Proof for Green Claims
Cause Marketing Takes Off
Retailers Pressuring Suppliers Along Ethical Lines
Legislative Changes in the Works
Healthy Sales Growth Projected Through 2014
Table 2-6: Projected U.S. Retail Sales of Ethical Products, 2009-2014 (in millions of dollars)
Competitive Overview
Top Ethical Product Marketers
Acquisitions Yield Consolidation, Credibility Issues
The Most Ethical Companies and Brands
Over 2,100 New U.S. Products Annually Bear Ethical Claims
Table 2-7: Number of U.S. Ethical Product Launches, 2005-2009
Organic, Natural Lead New Products Claims
Figure 2-4: Top 10 Ethical Claims by Number of U.S. Ethical Product Launches, 2005, 2008 and 2009
Marketers Reduce Packaging’s Environmental Footprint
Natural Supermarkets Set the Pace
Over 18,000 Stores in the Natural Foods Channel
Ethical Becoming an Essential Competitive Thrust for Supermarkets
Ethical Initiatives at Publix Super Markets
Opportunity Too Good for Mass Merchandisers to Miss
Specialty and Department Stores Strong in Personal Care
Alternative Distribution Channels
Case Study: Safeway, Inc
Safeway Moves to Lifestyle Formats
Ethical Private Label and Other Product Initiatives
Safeway and Sustainability
Case Study: Walmart Stores, Inc
Walmart Goes Sustainable
Success, Controversy, and Green Initiatives
More Ethical Products
Transforming Marketers
Walmart’s Sustainable Packaging Scorecard
Next Up: Sustainability Index
Greener Stores
Corporate Giving
Higher Ethics Expected of Suppliers
Case Study: Whole Foods Market
Company Returns to Its Roots
Growth Strategy
Ethical Convictions and Capitalist Growth Principles
Whole Foods Criticized on Ethics
Ethical Initiatives
Consumer Overview
Methodology: Experian Simmons Is Primary Source
Three Out of Four Consumers Believe Companies Should Act Ethically
Table 2-8: Demographic Segments Most and Least Likely to Agree It Is Important a Company Acts Ethically, 2009 (percent, number and index of U.S. adults)
Over One-Third of Shoppers Willing to Pay More for Eco-Friendly Products
Table 2-9: Demographic Segments Most and Least Likely to Agree They Would Pay More for Environmentally Friendly Products, 2009 (percent, number and index of U.S. adults)
Ethical Consumers Come in Shades of Green
Consumers and Sustainability
GMA-Deloitte Green Shopper Study
Financial Setback and Doing the Right Thing
Table 2-10: Ethical Consumption Psychographics: Affluent Consumers by Change in Financial Situation, Q3 2008 to Q1 2009 (percent)


Chapter 3: Food & Beverages
Market Trends
Market Definition
Four Key Ethical Issues Affect Food and Beverages
Definition of “Organic”
Organic Foods Not Nutritionally Superior?
Canada Adopts Organic Product Regulations
Many Organic Foods Support Other Social Issues
No Set Definition for “Locally Grown”
Humane Treatment of Animals
Cage-Free Eggs
No Standards for Free-Range Label
Fair Trade Practices
TransFair Certifies Products Sold in USA
Sustainable Agriculture
Some Marketers Set Their Own Sustainable Sourcing Guidelines
Sustainable Seafood
The Sustainable Agriculture Initiative
Hormone-Free
Genetically Modified Ingredients Widespread
Non-Profit Group Begins Non-GMO Certification
Genetically Engineered Animals Coming Soon
CSR and Corporate Sustainability in the Food Industry
Market Size and Composition
Ethical Food and Beverage Retail Sales Near $28.2 Billion in 2009
Table 3-1: U.S. Retail Sales of Ethical Foods and Beverages, 2005-2009 (in millions of dollars)
More than Three Out of Four Ethical Foods Carry an “Organic” Claim
Sales of Organic Foods and Beverages Pace the Market
Table 3-2: U.S. Retail Sales of Organic Foods and Beverages, 2005-2009 (in millions of dollars)
U.S. Retail Sales of Fair Trade Foods and Beverages
Table 3-3: Global vs. U.S. Retail Sales of Fair Trade Foods and Beverages, 2005-2008 (in millions of euros)
Produce and Dairy Are Largest Ethical Categories
Figure 3-1: Share of U.S. Retail Sales of Ethical Foods and Beverages by Product Category, 2009 (percent)
Natural Foods Channel Leads Retail Sales
Figure 3-2: Share of U.S. Retail Sales of Ethical Foods and Beverages by Retail Channel, 2009 (percent)
Market Outlook
Obama Administration Brings Changes
More Consumers Choose Ethical Food Shopping
Organic Foods and Beverages Going Mainstream, But Growth Is Slowing
Table 3-4: Consumers Who Frequently Buy Organic Foods and Beverages, February 2009 (percent of U.S. adults)
Nearly 70% of Consumers Buy Organic
Organic Foods and Beverages Carry a Price Premium
Consumers Willing to Pay More for Organic Foods and Beverages
Table 3-5: Consumers Who Are Willing to Pay More for Organic Foods and Beverages, February 2009 (percent of U.S. adults)
Organic Farming Takes Root
Table 3-6: U.S. Certified Organic Acreage: 1992, 2000, 2003 and 2005
A Glut of Organic Supplies?
Local Foods Gain Interest
Consumers More Attuned to Humane Treatment of Animals
Retailers Also Spearhead Animal Welfare Standards
Fair Trade, Rainforest Alliance Awareness Gain Momentum
More Dairies Going Hormone-Free
Few Consumers Understand GMO
Cause-Related Marketing
Corporate Sustainability Goals
Ethical Foods and Beverages Sales Will Top $44 Billion in 2014
Table 3-7: Projected U.S. Retail Sales of Ethical Foods and Beverages, 2009-2014 (in millions of dollars)
Competitive Trends
Global Marketers, Investors Control Many Top Brands of Ethical Foods and Beverages
Corporate Buyouts Continue
Organic Line Extensions Not So Successful
Private-Label Ethical Products Booming
Marketing and New Product Trends
More than 1,300 New Products Bear Ethical Claims
Table 3-8: Number of U.S. Ethical Food and Beverage Launches, 2005-2009
Organic and Natural the Most Popular Claims
Figure 3-3: Top 10 Ethical Claims by Number of U.S. Ethical Food and Beverage Launches, 2009
Table 3-9: Ethical Claims by Number of U.S. Ethical Food and Beverage Launches, 2005-2009
Tea Category Leads in Ethical Products
Table 3-10: Number of Ethical Food and Beverage Launches by Product Category, 2005-2009
Private Label Leads Product Introductions
Table 3-11: Top 15 U.S. Marketers of Ethical Foods and Beverages by Number of Product Launches, 2005-2009
More Marketers Ally Themselves with Social and Environmental Causes
Reducing Carbon Footprint
Traceability as a Consumer Marketing Strategy
Celebrity Endorsements: Are They Credible?
Mainstream Marketers Extending Brands with Organic Varieties
Cage-Free Eggs Making Inroads
Sustainable Meat and Seafood
Locally Grown Mostly a Retail Strategy
Growing Their Own—Chickens
Fair Trade and Rainforest Alliance Certification
Targeting Ethical Parents through Kids
Growth in Bottled Water Drying Up
Reduce - Reuse - Recycle: Packaging Goes Eco-Friendly
Case Studies
Clif Bar & Company—Raising the Ethical Bar
Community Service and Cause Marketing
Corporate Culture Emphasizes Personal Well-Being
Quench Bar Supports “1% for the Planet”
Contessa Premium Foods, Inc.—Green Cuisine
Frito-Lay North America, Inc.—Jumping on Social Trends
The Casa Grande Plant Retrofit
Earth-Friendly Packaging
Case Study: Frontier Natural Products Co-op
Focus on Sustainable Sourcing
Giving Back to the Community
Newman’s Own, Inc.: Dedicated to Philanthropy
Hole in the Wall Camps a Big Success
Company Partners with Ford to Help Feed America
Joins Safe Water Network
The Committee Encouraging Corporate Philanthropy
Stonyfield Farm, Inc.—A Model for Corporate Responsibility
The Greener Cow Pilot Program
Quality and Authenticity Are Keys to Success
The Consumer
The Experian Simmons Consumer Survey
One out of Four Consumers Looks for Organic/Natural Foods
West Coast, Northeast and Metro Consumers More Likely to Buy Organic/Natural Foods
Higher Levels of Education and Income Characterize Consumers
Asian-Americans Skew High
Youngest Shoppers Resist Organic/Natural Foods, But Small Households Score High
Figure 3-4: Selected High-Index Demographics: Consumers Who Look for Organic/Natural Food, 2009 (U.S. adults)
Table 3-12: Demographic Overview for Consumers Who Look for Organic/Natural Food (Any Agree), 2009 (percent, number and index of U.S. adults)
Table 3-13: Demographic Overview for Consumers Who Look for Organic/Natural Food (Agree a Lot), 2009 (percent, number and index of U.S. adults)
Table 3-14: Demographic Overview for Whole Foods Market or Trader Joe’s Shoppers, 2009 (percent, number and index of U.S. adults)
Affluent Consumers and Organic/Natural Foods
Table 3-15: Affluent Consumers: Largest Demographic Blocs, Q3 2008 to Q1 2009 (percent, number and index)
Table 3-16: Affluent Consumers: Top Demographic Indicators, Q3 2008 to Q1 2009 (percent, number and index)
Table 3-17: Agreement Among Affluent Consumers with Statement, “When Shopping for Food, I Especially Look for Organic or Natural Foods”: Overall and by Recent Change in Financial Situation, Q3 2008 to Q1 2009 (percent and index)
Figure 3-5: Agreement Among Affluent Consumers with Statement, “When Shopping for Food, I Especially Look for Organic or Natural Foods”: By Change in Financial Situation, Q3 2008 to Q1 2009 (percent)


Chapter 4: Non-Food Products
Market Trends
Focus on Ethical Personal Care and Household Products
Personal Care Products
Household Products
Key Ethical Issues Affecting Non-Food Products
Natural or Organic vs. Synthetic
Cruelty Free—Not Tested on Animals
Biodegradable, Recycled and Recyclable
Sustainable Sourcing
Fair Trade and Ethically Sourced
CSR and Corporate Sustainability in the Personal Care and Household Products Industries
NSF/ANSI 305: The First Organic Standard for Personal Care Products
No Parabens
No Regulated Standards for Most Household Products
Green or Eco-Friendly Household Products Share Many
Similar Attributes
No Chlorine Bleach
No Phosphates
Market Size and Composition
Retail Sales of Ethical Non-Foods to Top $9.7 Billion in 2009
Table 4-1: U.S. Retail Sales of Ethical Non-Food Products, 2005-2009 (in millions of dollars)
Ethical Personal Care Products Grow to $8.1 Billion
Table 4-2: U.S. Retail Sales of Ethical Personal Care Products, 2005-2009 (in millions of dollars)
Ethical Household Products Sales Soar to $1.6 Billion
Table 4-3: U.S. Retail Sales of Ethical Household Products, 2005-2009 (in millions of dollars)
Personal Care Products Dominate Ethical Non-Food Sales
Figure 4-1: Share of U.S. Retail Sales of Ethical Non-Food Products by Segment, 2005 vs. 2009 (percent)
Natural Foods Channel Rings Up Almost Half of Retail Sales
Figure 4-2: Share of U.S. Retail Sales of Ethical Personal Care Products by Retail Channel, 2009 (percent)
Figure 4-3: Share of U.S. Retail Sales of Ethical Household Products by Retail Channel, 2009 (percent)
Retail Sales of Organic Non-Food Products Top $1.6 Billion
Market Outlook
More Americans Determined to Go Natural, Organic, Green
Green Non-Foods Weathering the Recession Well
More Consumers are Going Green
Product Safety and Personal Health a Driving Factor
Pop-Prestige Chains Buoy Personal Care Product Sales
Product Performance Key
Mainstream Marketers Joining the Market
Fierce Competition for Shelf Space
H1N1 Flu Could Dampen Growth of Green Household Products
Retail Sales Will Surpass $17.5 Billion by 2014
Table 4-4: Projected U.S. Retail Sales of Ethical Non-Food Products, 2009-2014 (in millions of dollars)
Ethical Personal Care Sales Will Top $13.6 Billion in 2014
Table 4-5: Projected U.S. Retail Sales of Ethical Personal Care Products, 2009-2014 (in millions of dollars)
Ethical Household Products Will Approach $3.9 Billion in 2014
Table 4-6: Projected U.S. Retail Sales of Ethical Household Products, 2009-2014 (in millions of dollars)
Competitive Trends
Ethical Non-Food Marketers
Hundreds of Personal Care Marketers, Only a Few Dozen Majors
Table 4-7: Top 10 Marketers of Natural/Organic Personal Care Products by Retail Sales and Percent Share of Total Retail Sales, 2006 vs. 2008 (in millions of dollars)
Few Natural Personal Care Marketers Cross Over to Mass-Market Channels
Mainstream Household Products Marketers Muscle into Ethical Arena
Growth Through Acquisitions
Private Label Aplenty
Marketing and New Product Trends
New Non-Food Products with Ethical Claims Rising Rapidly
Natural Surpasses Organic as Leading Ethical Claim
Soap Is Leading New Product Category in Ethical Non-Foods
The Body Shop Leads Marketers in Launches
Table 4-8: Number of U.S. Ethical Non-Food Product Launches: 2005-2009
Table 4-9: Top 10 Ethical Claims by Number of U.S. Ethical Non-Food Product Launches: 2005, 2008 and 2009 (number)
Table 4-10: Ethical Claims by Number of U.S. Ethical Non-Food Product Launches, 2005-2009 (number)
Table 4-11: Number of Ethical Non-Food Launches by Product Category: 2005-2009 (number)
Table 4-12: Top 10 U.S. Marketers of Ethical Non-Food Products by Number of Product Launches: 2005-2009 (number)
Better for the Environment, Better for You
Price and Performance Are Key Parts of the Marketing Equation
Ethical Products Through Green Chemistry
Natural and Pseudo-Natural Personal Care Products Proliferate
The Mineral Craze
Teens for Safe Cosmetics
Other Product Splashes
Personal Paper Goods an Environmental Conundrum
Green Household Products Surging
Other Green Household Products
Concentrated Formulas
Household Products Come Clean on Ingredients
Are Green Paper Products Going Mainstream?
Seeing the Light with Energy-Saving Light Bulbs
Marketers Embrace Cause-Related Marketing
Fair Trade Claims Will Increase in Personal Care Products
Sustainability Is Building
Private Label Goes Ethical
Case Studies
The Body Shop Under L’Oréal
Clorox Co. Goes Green with Burt’s Bees and Green Works
Burt’s Bees Humming
Clorox’s Green Works Is Cleaning Up in Household Products Market
Kimberly-Clark Launches Natural Paper Products
Marcal Paper Products LLC: Rising from the Ashes
Seventh Generation Fights Back
Tom’s of Maine Under Colgate
The Consumer
The Packaged Facts Consumer Study
Half of Those Surveyed Use Natural HBC
Figure 4-4: Consumer Usage of Natural/Organic Personal Care Products, 2009 (percent of U.S. adults)
But Only a Third Say It’s Effective as General-Market HBC
Relatively Few Plan to Spend Less on Natural HBC
Figure 4-5: Consumer Attitudes About Natural/Organic Personal Care Products, 2009 (percent of U.S. adults)
Burt’s Bees the Most Popular Brand By Far
Figure 4-6: Consumer Usage of Natural/Organic Personal Care Products by Brand, 2009 (percent of U.S. adult users of natural/organic personal care products)
The Experian Simmons Consumer Survey
Nearly One-Third of Women Never Buy Cosmetics Tested on Animals
Table 4-13: Selected Above Average Demographics for Consumers Who Never Buy Cosmetics Tested on Animals (Any Agree), 2009 (percent, number and index of U.S. adults)
Figure 4-7: Selected High Indexes for Consumers Who Never Buy Cosmetics Tested on Animals (Agree a Lot), 2009 (U.S. adults)
37% of Consumers Buy Recycled Paper Products
Table 4-14: Selected Above Average Demographics for Consumers Who Buy Recycled Paper Products (Any Agree), 2009 (percent, number and index of U.S. adults)
Figure 4-8: Selected High Indexes for Consumers Who Buy Recycled Paper Products (Agree a Lot), 2009 (U.S. adults)

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