Ethical Consumers and Corporate Responsibility: The Market and Trends for Green Products in Food and Beverage, Personal Care and Household Items

Jan 1, 2007
246 Pages - Pub ID: LA1282418
Attention: There is an updated edition available for this report.
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Chapter 1: Executive Overview
  • Scope & Methodology
    • Scope of Report: Focus on Three Grocery Product Areas
    • Report Methodology

  • Market Overview
    • Key Ethical Issues
    • Organic
    • No Genetic Modification or Cloned Animals
    • Fair Trade
    • Locally Grown
    • Sustainable Agriculture
    • Humane Treatment of Animals
    • No Animal Testing/Cruelty-Free
    • “Green”—Eco-Friendly—Non-Toxic
    • Biodegradable, Recyclable, Reusable, and Minimal Packaging
    • Criteria and Certification
    • Consumers Union Lists 147 Different “Eco-Labels”
    • Ethical Product Sales Top $32.8 Billion in 2006
    • Table 1-1: U.S. Retail Sales of Ethical Products, 2002-2006 (in billions of dollars)
    • Foods and Beverages Account for 82% of Retail Sales
    • Figure 1-1: Share of U.S. Retail Sales of Ethical Products by Product Group, 2006 (percent)
    • Natural Foods Channel Generates Nearly Half of Retail Sales
    • Figure 1-2: Share of U.S. Retail Sales of Ethical Products by Retail Channel, 2006 (percent)

  • Market Outlook
    • Ethical Consumerism: A Mindset and A Lifestyle
    • Green Goes Mainstream as Conscientious Consumerism Rises
    • Media Spreads a Global Green Culture
    • Americans Shift From Ego to Eco
    • Globalized “Consumer Class”
    • Who Are the Eco-Friendly Consumers?
    • Gap Between Opinions and Buying Behavior
    • Voting at the Checkout
    • Consumer Boycotts
    • Major Corporations Get More Involved
    • Retailers Are Pressuring Suppliers’ Ethics
    • The Profit Motive
    • Controversy Over “Green” Ethics
    • Ethical Issues Sometimes Conflict
    • Retail Sales Will Approach $57.3 Billion in 2011
    • Table 1-2: Projected U.S. Retail Sales of Ethical Products, 2006-2011 (in billions of dollars)

  • Competitive Trends
    • Mainstream Moves to Incorporate Ethical Products
    • Selling, or Selling Out?

  • Marketing and New Product Trends
    • Third-Party Certification Adds Credibility, Luxury Cachet
    • Alternative Marketing
    • “Natural,” “Organic” Lead New Products Claims
    • Figure 1-3: Top 10 Ethical Claims on New Products, 2001 vs. 2006

  • Retail Trends
    • “Supernaturals” Set the Pace
    • At Least 25,000 Stores in Natural Foods Channel
    • Ethical Becoming an Essential Competitive Thrust for Supermarkets
    • Wal-Mart and Target Also Going Ethical
    • Specialty and Department Stores Strong in Personal Care
    • Farmers Markets and CSAs
    • Alternative Distribution Channels
    • Case Study: Wal-Mart Goes Sustainable
    • Success, Controversy, and Green Initiatives
    • Case Study: Whole Foods as “Whole-Mart”
    • Growth Strategy
    • Ethical Convictions and Corporate Responsibility
    • Yet, Even Whole Foods is Criticized on Ethics
    • Lower Expectations

  • The Consumer
    • The Simmons Consumer Survey
    • Three Out of Four Consumers Believe Companies Should Act Ethically
    • 55% Recycle; 61% Think Product Packaging Should Be Recycled
    • Figure 1-4: High-Index Demographics of Consumers Who Agree That Packaging for Products Should Be Recycled, 2006 (U.S. adults)
    • Table 1-3: Demographic Overview for Consumers Who Agree It Is Important a Company Acts Ethically, 2006 (U.S. adults)
    • Table 1-4: Demographic Overview for Consumers Who Agree That Packaging for Products Should Be Recycled, 2006 (U.S. adults)

  • Looking Ahead
    • Appealing to a Broader Consumer Base
    • Retail Competition, Expansion Will Continue to Drive Market
    • The Wal-Mart Effect
    • More Mergers and Acquisitions
    • Continued Cross-Over by Mainstream Marketers
    • Ethical vs. “Ethical, Inc.”

Chapter 2: Food and Beverages

  • Market Trends
    • Market Definition
    • Key Ethical Issues Affecting Food and Beverages
    • Organic
    • Definition of “Organic”
    • Many Organic Foods Support Other Social Issues
    • No Hormones
    • No Genetic Modification
    • Use of Genetically Modified Ingredients Widespread
    • Controversial Products Pulled from Market
    • Few Americans Understand GMO
    • Group Proposes Non-GMO Certification
    • No Meat or Milk from Cloned Animals
    • Is “Locally Grown” the Next “Organic”?
    • The “Food Miles” Concept
    • Whole Foods Goes Local…
    • …As Does Wild Oats
    • Humane Treatment of Animals
    • Cage-Free Eggs
    • No Standards for Free-Range Label
    • Grass-Fed Beef
    • Certified Humane and Free-Farmed Labels
    • Whole Foods Bans Sale of Live Lobsters
    • Humane Society Seeks Foie Gras Production Ban; Banned in Chicago
    • Retailers Spearhead Animal Welfare Standards
    • Fair Trade Practices
    • TransFair Certifies Products Sold in USA
    • Sustainable Agriculture
    • Some Marketers Setting Their Own Sourcing Guidelines
    • Sustainable Seafood
    • The Organic Fish Debate
    • Sales of Organic Foods and Beverages Easiest to Track
    • Ethical Food and Beverage Sales Grow to $26.9 Billion
    • Table 2-1: U.S. Retail Sales of Ethical Foods and Beverages, 2002-2006 (in billions of dollars)
    • Produce and Dairy Are Largest Ethical Categories
    • Figure 2-1: Share of U.S. Retail Sales of Ethical Foods and Beverages by Product Category, 2006 (percent)
    • Natural Foods Channel Leads Retail Sales
    • Figure 2-2: Share of U.S. Retail Sales of Ethical Foods and Beverages by Retail Channel, 2006 (percent)

  • Market Outlook
    • More Consumers Choose Ethical Shopping
    • Organic Foods and Beverages Growing in Popularity
    • Ethical Issues Serve as a Point of Differentiation
    • Mainstream Retailers, Marketers Offering Ethical Foods and Beverages
    • Fair Trade Bananas to Get a Big Push
    • Price a Deterrent, But Many Consumers Willing to Pay More
    • Growing Shortage of Organic Ingredients
    • “Authentic” vs. “Fabricated” (Mass-Produced) Products
    • Many Consumers Distrust “Big Business” to Produce Ethical Foods
    • Cheating on Fair Trade?
    • Will Organic Growth Fizzle Out?
    • Food Contamination Scares Affect Industry
    • Ethical Foods and Beverages Market to Near $47.0 Billion in 2011
    • Table 2-2: Projected U.S. Retail Sales of Ethical Foods and Beverages, 2006-2011 (in billions of dollars)

  • Competitive Trends
    • Ethical Food and Beverage Marketers
    • Global Marketers, Investors Control Many Top Brands of Ethical Foods and Beverages
    • Recent Mergers and Acquisitions
    • Is Smaller Better?
    • Starbucks, Stonyfield Farm, and Ben & Jerry’s Are Largest Mass-Market Ethical Brands
    • Table 2-3: IRI-Tracked Sales of Selected Ethical Foods and Beverages, 2005 vs. 2006 (in millions of dollars)
    • Table 2-4: IRI-Tracked Sales of Selected Ethical Foods and Beverages, 2001-2005 (in millions of dollars)

  • Marketing and New Product Trends
    • Mainstream Marketers Seek More Participation and Visibility
    • A Switch to Biodegradable and Recycled/Recyclable Packaging
    • “Natural” and “Organic” the Most Popular Product Tags
    • Figure 2-3: Top Five New Ethical Food and Beverage Product Claims, 2001 vs. 2006
    • Table 2-5: Ethical Foods and Beverages: Selling Points by Package Tags, 2001-2006

  • The Consumer
    • The Simmons Consumer Survey
    • Higher Levels of Education Characterize Consumers
    • Figure 2-4: Selected High-Index Demographics of Consumers Who Look for Organic/Natural Food, 2006 (U.S. adults)
    • Asian-Americans Skew High
    • Older Shoppers, Small Households Also Indicated
    • Table 2-6: Demographic Overview for Consumers Who Look for Organic/Natural Food (Any Agree), 2006 (U.S. adults)
    • Table 2-7: Demographic Overview for Consumers Who Look for Organic/Natural Food (Agree a Lot), 2006 (U.S. adults)
    • Table 2-8: Demographic Overview for Patrons of Whole Foods Market or Trader Joe’s, 2006 (U.S. adults)

  • Case Studies
    • Ben & Jerry’s Homemade: From Hippies to Alternative Corporate Culture
    • Green Mountain Coffee Roasters: Tops in Business Ethics
    • Horizon Organic Dairy: Under Fire
    • Cornucopia Institute Files Complaints
    • Natural Selection Foods: “Industrial” Organic Produce
    • Newman’s Own: All Profits Go to Charity
    • Niman Ranch: Pioneer in Naturally Raised Meat Helps Small Farmers
    • Organic Valley Family of Farms: A Farmers’ Co-Op
    • Starbucks: A Pioneer in Corporate Responsibility
    • Stonyfield Farm: Guerilla Marketing

Chapter 3: Personal Care Products

  • Market Trends
    • Market Definition
    • Key Ethical Issues Affecting Personal Care Products
    • Natural, Organic, or Synthetic
    • Commonly Used Ingredients
    • Cruelty Free—Not Tested on Animals
    • Biodegradable, Recycled, and/or Recyclable
    • Ethical Personal Care Sales Top $5.2 Billion
    • Table 3-1: U.S. Retail Sales of Ethical Personal Care Products, 2002-2006 (in billions of dollars)
    • HBC Dominates Personal Care Product Categories
    • Figure 3-1: Share of U.S. Retail Sales of Ethical Personal Care Products by Product Category, 2006 (percent)
    • Natural Foods Channel Accounts for Two-Thirds of Sales
    • Figure 3-2: Share of U.S. Retail Sales of Ethical Personal Care Products by Retail Channel, 2006 (percent)

  • Market Outlook
    • Ethical HBC Brands Still Mostly Niche, But Growing Fast
    • Retail Space a Challenge
    • Crossing Over
    • Premium Price Tags Buoying Sales Increases
    • Product and Packaging Efficacy Must Improve
    • Personal Paper Goods Expected to Stay Small
    • Ethical Personal Care to Reach $8.8 Billion by 2011
    • Table 3-2: Projected U.S. Retail Sales of Ethical Personal Care Products, 2006-2011 (in billions of dollars)

  • Competitive Trends
    • Hundreds of Marketers, Only a Few Dozen Majors
    • Recent Mergers and Acquisitions
    • Aveda and The Body Shop Lead the Pack
    • Levlad, Hain the Strongest HBC Players in Natural Foods Channel
    • Mass-Market Sales Gain 29% in 2006
    • Tom’s of Maine, Burt’s Bees Lead in Mass
    • Table 3-3: IRI-Tracked Sales of Selected Ethical Personal Care Products, 2005 vs. 2006 (in millions of dollars)
    • Table 3-4: IRI-Tracked Sales of Selected Ethical Personal Care Products, 2001-2005 (in millions of dollars)

  • Marketing and New Product Trends
    • Personal Care Marketers Still Building Assortment
    • New Product Package Claims
    • Figure 3-3: Top Five New Ethical Personal Care Product Claims, 2001 vs. 2006
    • Table 3-5: Ethical Personal Care Products: Selling Points by Package Tags, 2001-2006
    • Mineral Makeup a Hot Trend
    • Major Lines Expanding
    • Without, Minus, and Free Of
    • More Than Just Basics
    • More Natural
    • Personal Paper Products

  • The Consumer
    • The Simmons Consumer Survey
    • 30% of Women Don’t Buy Cosmetics Tested on Animals
    • Figure 3-4: Selected High Indexes for Consumers Who Never Buy Cosmetics Tested on Animals (Any Agree), 2006 (U.S. adults)
    • Table 3-6: Demographic Overview for Consumers Who Never Buy Cosmetics Tested on Animals (Any Agree), 2006 (U.S. adults)
    • Table 3-7: Demographic Overview for Consumers Who Never Buy Cosmetics Tested on Animals (Agree a Lot), 2006 (U.S. adults)

  • Case Studies
    • Aveda: Its Own Retailer
    • The Body Shop: Snatched Up by L’Oréal
    • The Hain Celestial Group: Jason and Zia Join the Empire
    • Kiss My Face: Irreverently Organic
    • Tom’s of Maine: Colgate Buys Majority Interest

Chapter 4: Household Products

  • Market Trends
    • Market Definition: Household Products
    • “Green” or Eco-Friendly Household Products Share Many Similar Attributes
    • No Phosphates
    • No Chlorine Bleach
    • No Regulated Standards for Most Household Products
    • Ethical Household Product Sales Rise to $680 Million
    • Table 4-1: U.S. Retail Sales of Ethical Household Products, 2002-2006 (in millions of dollars)
    • Household Cleaners Is Larger Household Products Category
    • Figure 4-1: Share of U.S. Retail Sales of Ethical Household Products by Product Category, 2006 (percent)
    • Eco-Friendly Cleaners a $327 Million Business in 2005
    • Natural Foods Channel Accounts for Half of Retail Sales
    • Figure 4-2: Share of U.S. Retail Sales of Ethical Household Products by Retail Channel, 2006 (percent)

  • Market Outlook
    • Consumer Awareness, Availability of Ethical Alternatives Building
    • Where Are the Mainstream Marketers?
    • Product Performance Key
    • Greenpeace Targets Kimberly-Clark
    • Fierce Competition for Mass-Market Shelf Space
    • Supply Chain Vulnerabilities
    • Retail Sales Will Approach $1.5 Billion by 2011
    • Table 4-2: Projected U.S. Retail Sales of Ethical Household Products, 2006-2011 (in millions of dollars)

  • Competitive Trends
    • Ethical Household Product Marketers
    • Most Companies Small and Privately Held
    • Planet Acquires Green Forest
    • Paper Goods Dominate Mass-Market Sales
    • Figure 4-3: IRI-Tracked Sales of Ethical Paper Goods and Household Cleaning Products, 2001-2006 (in millions of dollars)
    • Marcal Controls 93% of Mass-Market Ethical Paper Goods
    • Mass-Market Household Cleaners Growing Rapidly
    • Table 4-3: IRI-Tracked Sales of Selected Ethical Household Products, 2005 vs. 2006 (in millions of dollars)
    • Table 4-4: IRI-Tracked Sales of Selected Ethical Household Products, 2001-2005 (in millions of dollars)
    • Table 4-5: Top Brands of Selected Ethical Household Products by 1-Year Growth, 2006 (in millions of dollars)

  • Marketing and New Product Trends
    • New Product Package Claims
    • Figure 4-4: Top Five Product Claims on New Ethical Household Products, 2001 vs. 2006
    • Table 4-6: Ethical Household Products: Selling Points by Package Tags, 2001-2006
    • “Green” Household Products Positioned on the Basis of Health Benefits
    • New and Improved
    • Ethical Cleaning Products Making Scents
    • Biodegradable and Compostable Plates, Cups, and Utensils

  • The Consumer
    • The Simmons Consumer Survey
    • Higher Education Characterizes Consumers
    • Figure 4-5: Selected High Indexes for Consumers Who Buy Products That Use Recycled Paper (Any Agree), 2006 (U.S. adults)
    • Older Shoppers, One-Person Households, Women Also Indicated
    • Asian Americans and Hispanics Prime Targets
    • Table 4-7: Demographic Overview for Consumers Who Buy Products That Use Recycled Paper (Any Agree), 2006 (U.S. adults)
    • Table 4-8: Demographic Overview for Consumers Who Buy Products That Use Recycled Paper (Agree a Lot), 2006 (U.S. adults)

  • Case Studies
    • Marcal Paper Mills: Recycled Paper Products = Profits
    • Method Products: It’s Hip to Be Eco-Friendly
    • Planet: Relaunches Green Forest Paper Products
    • Seventh Generation: A Phoenix Rising

Chapter 5: International Trends

  • Ethical Consumerism Mostly in Developed Nations
  • Different Ethical Issues Important in Different Countries
  • Are Consumers in Developing Nations Most Willing to Pay More for Ethical Products?
  • Boycotts Popular Worldwide
  • Organic Standards Differ
  • Canada Close to Enacting National Organic Standards
  • EU Proposes Animal Welfare Labeling
  • Focus on Ethical Consumerism in the U.K.
  • 52% of British Consumers Classify Themselves as Ethical
  • Fair Trade Particularly Well-Established
  • Look Behind the Label
  • British Media Play Up the Green Lifestyle
  • Conviction or Tokenism?
  • Case Study: Grupo Eroski (Spain)
  • Case Study: Migros (Switzerland)

Appendix: Addresses of Selected Marketers

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