In honor of Earth Week, Natural Marketing Institute (NMI) is pleased to announce results of its latest analysis of consumer spending in the LOHAS market. LOHAS is an acronym for "Lifestyles of Health and Sustainability" and describes an integrated, rapidly growing market for goods and services that appeal to consumers who have a meaningful sense of environmental and social responsibility and incorporate those values into their purchase decisions. The results of this review indicate that consumers spent almost $300 billion on LOHAS products and services in 2008.
According to NMI LOHAS Business Director, Gwynne Rogers, "The first Earth Day was 40 years ago and the green marketplace was just taking shape. Today, a majority of consumers are incorporating environmental considerations into their day-to-day lives — not just attitudinally, but by voting behaviorally with their dollars by spending $290 billion on goods and services that are environmentally-friendly, socially responsible and/or healthy."
Based on NMI's research, U.S. consumer spending in the five general market sectors for 2008 is as follows:
• Personal Health: $117 billion (includes natural/organic food, personal care, supplements, etc.)
• Green Building: $100 billion (includes certified homes, Energy Star appliances, etc.)
• Alternative Transportation: $20 billion (includes hybrids, diesel vehicles, electric vehicles, car sharing, etc.)
• Eco-tourism: $42 billion (includes travel spent on excursions in nature)
• Natural Lifestyles: $10 billion (includes home furnishings, apparel, etc.)
• Alternative Energy $1 billion (renewable power)
While NMI considers socially responsible investing (SRI) part of the overall LOHAS marketplace, the value of consumer investments in SRI is excluded as it does not truly represent a "purchase."
According to NMI Managing Partner Steve French, "We are extremely pleased to announce the release of updated LOHAS market size numbers — the first update since figures were developed for 2005. After six months of extensive research in collaboration with Georgetown University, the latest numbers reflect a high-growth marketplace with rapidly increasing mainstream interest and consumer engagement. In an effort to provide clients with an all-encompassing look at the LOHAS market, this new market-size information will be the perfect complement to the attitudinal and behavioral data from NMI's annual LOHAS Consumer Trends Database®. We now have a complete suite of tools in order to explore consumer opportunities within the hottest trend in the marketplace."
Specific details regarding the market size of sub-categories and growth rates from NMI's 2005 study, along with insightful commentary relating to the market-size data is available in NMI’s latest report: The Five Foundations of Marketing Sustainability in the New Economy. For more information on this research report, please contact Nancy White at 215-513-7300, ext. 225 or [email protected] or visit http://www.nmisolutions.com/r_lohas.html.
NMI is an international strategic consulting, market research, and business development company specializing in the health, wellness, and sustainability marketplace. For more information on NMI's proprietary research reports and services, visit NMI's web site at www.NMIsolutions.com.