U.S. Healthy Products, Healthy Planet Market at $440 Billion in 2003

San Diego, Calif., October 2004 – In a research project 16 years in the making, Environmental Business Journal (EBJ) and Nutrition Business Journal (NBJ) have defined and quantified a new market to represent all products and services sold to promote personal health or to benefit the environment.

Entitled the Healthy Products, Healthy Planet (HP2) market, this $440 billion in 2003 U.S. expenditures represents 4.2% of the U.S. economy and grew 6.3% in 2003–or more than twice the GDP growth of 3.1%. The value proposition may be health, it may be sustainability, it may be minimizing the footprint of each citizen, but collectively the $440 billion represents the early stages of an inexorable trend towards healthier lifestyles and a more sustainable economy.

The HP2 market includes consumer products like organic food and fitness equipment, consumer services like complementary & alternative medicine and ecotourism, industrial equipment like water filtration and wind power systems, industrial services like environmental consulting and waste management, sales of recycled materials and emerging categories like green building, sustainable timber and hybrid cars.

"Starting from virtually nothing about 30 years ago, HP2 products and services have been driven by a segment of the population seeking companies and solutions that reflect their concern for both personal and environmental health," said Grant Ferrier, founder and publisher of EBJ and NBJ. "Consumer demand for healthier lifestyles and a healthier planet have also impacted government policy and product development–creating opportunity for two or three generations of entrepreneurs."

Growth in the HP2 market is expected to continue at more than twice the rate of the economy. Many HP2 categories represent just a tiny fraction of their conventional counterparts, indicating a vast potential for growth. "Organic food is less than 2% of U.S. food sales, green buildings are less than 2% of new construction, and sustainable timber, hybrid cars and ecotourism are all well under 1% of conventional," said Ferrier. "We believe all of these categories have a realistic potential of 5-10% penetration before 2020."

Defining the Healthy Products, Healthy Planet market is more than just an intellectual exercise. "We acknowledge that these categories do not at operate as a cohesive unit. Consumer products and industrial services may be at opposite ends of the economy, but we firmly believe that HP2 segments converge on the simple objective of a creating a better world," said Ferrier. "And if more environmental consulting firms start selling green building design and ecotourism certifications and yoga instructors start selling organic cosmetics, then maybe we’ve made a larger contribution than just framing the market."

The HP2 market also serves as a valuable indicator of the increasingly important role being played by socially progressive businesses. "HP2 firms are offering solutions to some of the biggest challenges of our time such as sustainable energy generation, resource use and escalating health care costs," said Ferrier. "At 4.2% of the economy in 2003, the HP2 market has a lot of catching up to do."

Environmental Business Journal (EBJ) has been published since 1988 by Environmental Business International Inc. Subscribers include environmental consulting & engineering firms, environmental laboratories, waste management firms, remediation contractors, manufacturers or pollution control equipment, investors and industry analysts.

Nutrition Business Journal (NBJ) was founded by Environmental Business International Inc. in 1996 and was acquired by New Hope Natural Media, a Penton Media Inc. company, in 2001. Annual subscriptions are $995. Subscribers include manufacturers & suppliers of dietary supplements, natural & organic foods, functional foods, investors and industry analysts.

The $440-Billion U.S. Healthy Products, Healthy Planet Market
2002 $Bil 2003 $Bil Growth
Total 413.96 440.19 6.3%
Consumer Products 128.83 138.59 7.6%
Healthy Foods & Household Products
Natural & Organic Foods 15.47 17.20 11.2%
Functional Foods 20.93 22.78 8.8%
Lesser Evil Foods 56.22 59.59 6.0%
Dietary Supplements* 18.75 19.82 5.7%
Natural & Organic Personal Care Products 4.08 4.49 10.0%
Natural & Organic Cleaners 0.22 0.26 16.0%
Natural & Organic Pet Foods, Flowers & Supplements 0.47 0.55 16.4%
Organic Clothing & Other Fiber Products 0.07 0.09 30.0%
Household Durable Goods
Drinking Water Systems (point-of-use/entry) 1.26 1.36 8.0%
Air Quality Filters & Home Air Purifiers 0.57 0.60 6.0%
Energy Efficient Lightbulbs: Compact Fluorescents 0.55 0.58 5.9%
Super-Efficient Appliances 2.31 2.40 4.0%
Home Solar Energy Collectors/Systems 0.18 0.20 14.0%
Compost & Organic Gardening Supplies 2.19 2.42 10.4%
Exercise & Fitness Equipment 3.67 3.76 2.5%
Hybrid Cars 1.12 1.62 44.5%
‘Eco-House’ Building Kits 0.19 0.20 5.5%
Specialty Kitchen Equipment: Juicers, Sprout Growers 0.04 0.04 5.5%
Sustainable Timber Products & Supply 0.18 0.24 30.0%
Educational Material: Books, Tapes, CDs, Classes, Software 0.37 0.40 8.0%
Consumer Services 53.18 57.15 7.5%
Complementary & Alternative Medicine** 31.92 34.29 7.4%
Gyms, Health Clubs, Fitness Centers 13.10 14.10 7.6%
Yoga Centers/Instructors 2.84 3.00 5.5%
Day Spas 5.09 5.40 6.0%
Eco-Tourism 0.22 0.35 60.0%
Industrial Products 64.35 66.44 3.3%
Water Treatment Equipment and Chemicals 20.83 21.40 2.8%
Air Pollution Control Equipment: Vehicles & Stat. Sources 18.76 18.53 -1.2%
Waste Management & Recycling Equipment 9.58 9.80 2.3%
Environmental Instruments & Information Systems 3.90 3.97 1.9%
Clean Energy Systems & Power Sales*** 11.28 12.73 12.9%
Industrial Services 149.67 158.08 5.6%
Environmental Consulting & Engineering 18.77 19.08 1.7%
Site Remediation/Industrial Decontamination & Cleanup 12.21 12.39 1.5%
Analytical Services: Lab Testing & Vehicle Smog Tests 3.88 4.07 5.0%
Wastewater Treatment**** 29.62 30.42 2.7%
Water Utilities**** 31.58 32.56 3.1%
Solid Waste Management & Recycling***** 41.95 43.17 2.9%
Hazardous Waste Mgmt: Industrial, Medical & Nuclear 4.74 4.54 -4.3%
Green Buildings: Design & Construction (value put in place) 6.91 11.85 71.5%
Recycling 17.94 19.93 11.1%
Recovered Material Sales (post-industrial & post-consumer) 15.00 16.70 11.4%
Consumer Goods Made from Recycled Materials 2.94 3.23 10.0%

*Vitamins, Minerals, Herbs & Botanicals, Specialty, Sports and Meal Supplements;
**Chiropractic, Chinese Medicine, Acupuncture, Homeopathy, Massage, Naturopathy
***Solar, wind, biomass, landfill gas, fuel cells, geothermal, small scale hydro
****Municipal & Private Infrastructure Operation & Maintenance
*****Residential, Commercial & Industrial: Collection, Transportation & Disposal Services

Nutrition Business Journal & Environmental Business Journal

Grant Ferrier
Tel. (619) 295-7685 ext. 15;
[email protected]

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