Natural & Ethical Consumers 2004

Published by: Datamonitor

Published: Feb. 21, 2005 - 58 Pages

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

Introduction

The future decoded

Action points

CHAPTER 2 THE FUTURE DECODED

Introduction

Consumers are increasingly acting on their ethical beliefs

The proportion of consumers acting ethically is growing

Consumers are increasingly likely to pay more for ethical goods

More consumers are turning to natural and organic products

The number of consumers of natural products is rapidly growing

The proportion of loyal users is increasing

The value of natural and fresh food and drink sales is rising

Natural and fresh food and drink is driven by the meat sector

Growth in organics will remain healthy

Consumers are turning to natural and ethical personal care

Both natural and ethical personal care are growing

Ethical issues matter most to food and drinks

Most consumers find ethics most relevant to food and drinks

Fewer consumers attach importance to ethics in personal care

Many consumers wish to - and do - act on their convictions

Over two-thirds of consumers have boycotted a CPG company

Environmental concerns have the most influence on consumers

Social concerns also feature highly in consumers’ priorities

Consumers are turning to alternative distribution channels

Case study: UK and US farmers’ markets

Time-poor ethical consumers often turn to deliveries

Natural personal care consumers have different motivations

What consumers want from natural personal care

Credibility of natural personal care

Conclusions

Ethical concerns increasingly guide consumers’ choices

CPG players must not dismiss ethical consumerism as a fad

Regaining consumers’ trust is key

CHAPTER 3 ACTION POINTS

Introduction

Make the distinctive properties of natural products clear

Promote natural personal care products as being healthy

Use natural positioning to develop a unique proposition

Be clear about the ethical and natural properties of products

Make verifiable claims about natural products

Make sure your natural ingredients are ethically sourced

Encourage retailers to develop a market feel

Consumers enjoy shopping in markets

Case study: Coco’s Fresh Food Markets

Capitalize on latent demand

Use reliable labeling schemes to build trust

Adopt effective yet honest communications strategies

CSR pays no dividends if consumers don’t know about it

CSR creates goodwill amongst employees as well as consumers

Engage in cross-industry ethical agreements

Case study: the Common Code for the Coffee Community

Help to educate consumers about food production

Rectify consumer misconceptions

An interest in production methods and health go hand in hand

CHAPTER 4 APPENDIX

Supplementary data

Definitions

Research methodology

Relevant links

How to contact experts in your industry

LIST OF TABLES

Table 1: Consumer survey: “Please rate the extent to which you have bought more or less ethical or socially-responsible goods and services in the past year.”

Table 2: Percentage and total number of natural (including organic) food and drink consumers by usage status, Europe and US, 2004-2009

Table 3: Value of natural (including organic) food and drink markets by key product markets, Europe and US, 2004-2009

Table 4: Value of organic food and drink markets by key product markets, Europe and US, 2004-2009

Table 5: Naturals % share of overall personal care market, 1999-2009

Table 6: Total value of natural personal care market, 1999-2009 (€bn and US$bn)

Table 7: Ethical personal care market value, 2004-2009

Table 8: Consumer survey: “for which type of product do you think that ethical considerations are most important?” (% respondents)

Table 9: Structure of the European organic food retail market, 2002

Table 10: Motivators for the use of natural personal care products (% survey respondents citing)

Table 11: Barriers to use of natural personal care products by non-users (% survey respondents citing)

Table 12: Percentage and total number of organic food and drink consumers by usage status, Europe and US, 2004-2009

Table 13: Consumer survey: “With regards to food and drinks, how aware are you of the following issues and how much do they influence your purchasing behavior?”

Table 30: Definitions used in this report

LIST OF FIGURES

Figure 1: Ethical consumer behavior by country, 2000-2005

Figure 2: Willingness to pay more for ethical products by country, 2000-2005

Figure 3: Defining natural personal care

Figure 4: Consumer survey: “For which type of product do you think that ethical considerations are most important?” (% respondents)

Figure 5: Consumer survey: main reason for boycotting a food, drinks or personal care manufacturer’s products

Figure 6: Consumer survey: “With regard to food and drinks, how aware are you of the following issues and how much do they influence your purchasing behavior?”

Figure 7: Rates of household waste recycling by country, Europe, 2003

Figure 8: French food certification schemes: consumers are often confused by what they actually indicate

Figure 9: The EU’s food labels guarantee provenance and production methods but not quality

Figure 10: Consumer survey: “Which of these ethical commitments would most improve your disposition towards buying a particular company’s food, drink or personal products?”

Abstract

• Current and forecast numbers of natural and organic consumers by country.
• Value of the key natural and organic food, drinks and personal care product markets by country.
• Detailed insights into the ethical issues that consumers are most influenced by in their purchasing decisions and how they act on their convictions.
• Review of leading corporate social responsibility programs, labeling schemes and how these effectively attract ethical consumers.

• Access comprehensive data on the opportunity that the growth of natural and organic consumers are creating.
• Understand how growing ethical concerns influence consumers' purchasing behavior and how this will evolve over the next five years.
• Learn how to successfully target ethical consumers by effectively communicating to them how you are meeting their expectations.

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