U.S. Consumers Continue to Buy Organic, Despite Recession
How many organic products will be on your table this Thanksgiving?
According to a new study from market research publisher Packaged Facts, despite the recession, one-fourth of U.S. adult shoppers frequently purchase certified organic food or beverage products, and one-third are usually willing to pay more for organic foods. (This summer, I wrote about similar survey results from the UK.)
The survey, titled Ethical Food and Beverage, Personal Care and Household Products in the U.S.; Conscientious Consumerism and Corporate Responsibility in the New Economy, 2nd Edition, found that the U.S. market for so-called “ethical” products (those marketed on the basis of eco-friendly/green, natural/organic, humane, and fair trade) continued to grow over the past year. Packaged Facts expects this trend to continue and projects that the market will approach $62 billion in 2014, up from a projected $38 billion in 2009.
Not surprisingly, food and beverages account for 75% of retail dollars spent on ethical consumer products in the U.S. Non-food items (personal care and household products, e.g.) account for the remaining 25%. In the future, Packaged Facts predicts non-food sales will grow faster (80%) than foods (57%), but will remain the smaller portion of the overall market.
Of course, I can’t read a report like this without considering the prevalence of greenwashing in the U.S. marketplace. Are these “ethical products” truly what they claim to be, or is the consumer being duped? Earlier this year, Scot Case, the Vice President of TerraChoice, testified before Congress that of all the products claiming to be eco-friendly, a whopping 98% are guilty of greenwashing. Fortunately, initiatives such as Walmart’s sustainable product index will bring clarity and put the emphasis where it belongs –not on just the word “green,” but on true life-cycle thinking.








