Shoppers Are Defying the Financial Crisis and Buying Green Products

Jan 20, 2009 00:01 ET


Retailers Perceived to Have "Green" Agendas Are Poised to Benefit From Consumers Choosing to Purchase Environmentally Friendly Products During the Downturn

BOSTON, MA--(Marketwire - January 20, 2009) - Consumers are becoming more green-conscious as the global economic crisis worsens, according to a report published today by The Boston Consulting Group (BCG).

In a survey of 9,000 consumers in North America, Europe, China, and Japan, BCG found that more shoppers systematically purchased green products in 2008 than in 2007. Some 34 percent of Europeans (up 2 percent from 2007) said they would continue to systematically look for and purchase green products. In a complementary survey of 1,040 consumers carried out in the United States this month, some 32 percent said they still systematically look for or often purchase green products.

These findings -- published in "Capturing the Green Advantage for Consumer Companies" -- reflect consumers' growing alarm about the state of the environment and suggest that they have not abandoned their principles as their financial woes have increased. This will be reassuring to companies that have invested heavily in green products, which is a business now worth billions globally.

"Will consumers continue to care about green issues now that the economy has taken a nosedive? The answer, judging from our research, is a resounding yes," said Catherine Roche, coauthor of the report and a partner in BCG's Düsseldorf office.

In Italy, 20 percent of consumers -- the highest proportion of the nine countries surveyed -- reported that they shop for green products in a systematic way. This reflects the fact that Italian consumers -- along with those in France -- are the most concerned about the environment: 76 percent agreed with the statement that "our environment is in a very bad state." In Spain, where 63 percent expressed concern for the environment, 17 percent said they shop systematically for green products.

In the United States, 16 percent of consumers -- or one in six -- were systematic shoppers for green products in 2008. Some 61 percent said the environment is in a very bad state.

In the United Kingdom, where (out of the five European countries surveyed) the lowest proportion of consumers -- 58 percent -- expressed concern for the environment, only 15 percent said they shop systematically for green products. In Japan, where a mere 52 percent think the environment is in a very bad state, just 11 percent of consumers are active green shoppers.

But while consumers are increasingly committed green shoppers, they are not altogether disregarding their financial concerns. Joe Manget, coauthor of the report and a senior partner in BCG's Toronto office, said, "The most popular green behavior is also budget friendly."

More than 75 percent of respondents said they turn off their home electronics when they are not using them. Other top-ten actions include using low-energy light bulbs (72 percent), using energy-efficient appliances (62 percent), and purchasing locally produced products (slightly more than half). By contrast, the least attractive green actions are those that are most costly: only 7 percent own a hybrid car, just over 13 percent put money into an environmentally friendly investment fund, and only about 16 percent do not own a car.

This is not to say that consumers are resistant to a "green premium," Mr. Manget said. "Although some consumers, particularly in China, are unwilling to pay a premium for green products, one-third of consumers across all the other countries we surveyed said they would pay between 5 and 10 percent more for green products -- so long as they were convinced that the products offered direct benefits."

BCG's Global Green Consumer Survey questioned approximately 9,000 adults, aged 18 to 65, in nine countries through online questionnaires sent to respondents in Canada, France, Germany, Italy, Japan, Spain, the United Kingdom, and the United States and -- in order to get a sense of the opinions of consumers in emerging markets -- through face-to-face interviews in seven major cities in China. The survey, carried out in July 2008, explored consumers' awareness of environmental issues, their behavior when shopping for green products, their willingness to pay a premium for green products in more than 50 categories, and their perceptions of green retailers and brands. BCG also interviewed executives at 20 leading consumer companies about their green strategies and experiences.

Source: The Boston Consulting Group