The Business of Green Shopping

Over the course of this blog I have analyzed the how the scope of the green movement has gotten narrower with progress and how it continues to grow.  At its inception, the green movement was about getting the government to pass legislation aimed at protecting the environment.  While this fight still goes on within state and federal governments, today's green movement is much more localized in the individual.  While we are encouraged to do things like recycle, or go paper free, many of the individual decisions we make regarding going green focus on buying "green" products.  We are encouraged to buy energy saving light bulbs, or to shop organically, all in the efforts of "doing our part."  These actions are not regulated by government legislation, but rather require the desire from the consumer to advocate for the environment.

Green products are those which are aimed at having a positive impact on the environment through their use, and often are marketed to benefitting the consumer as well.  Green products are prevalent in a variety of markets including beauty care, cleaning products, office supplies, or even things like hybrid cars and energy saving electronics.  These products all offer some sort of environmental benefit, such as making a product from recycled materials, being chemical and CFC free, or using only renewable resources for production.  Additionally these products offer to benefit the consumer by often marketing them as healthier alternatives.

Courtesy of Nicolo Castellini

While it is not a tangible benefit, the most important reason why consumers choose to go green lies in the thought of doing something good for the environment.  The recyclable aspect of green shopping implies that using a particular product will do less damage to the environment, as less toxins are leached into the atmosphere during production, contributing to a lighter impact on air and water pollution.

The concept of buying a product that will have less negative an impact has grown to be increasingly popular with consumers as the green movement itself has progressed.  Consumers have become increasingly aware of their actions regarding going green as it is constantly being thrust in our faces the importance of our duty to preserving our planet.  This awareness has seeped into consumer behavioral trends as people are likely to buy green products at a higher rate than ever before. According to a study conducted by the National Marketing Institute, nearly 85% of American consumers were accepting of green products and practices and 63% are continually increasing their purchasing of green or sustainable products.

This increase in the purchasing of sustainable products suggests that people genuinely care, or want to appear to care, about what kind of environmental impact they are having as an individual.  The same study found that 69% of American consumers cared about the reputation a company has in regards to its environmental impact.  This has turned sustainability into a business opportunity, as consumers are more likely to purchase products from a company if they know the company is a leader in sustainable practices.  If brands are able to reach this reputation amongst consumers, they are likely to sell more products, which ultimately benefits everyone in the long run.

In the past five years, consumers have even changed their attitudes regarding the quality of green products, as there has been nearly an 8% increase in the percentage of consumers who determined higher quality solely on the basis of a product labeled as eco-friendly.  And when it comes to quality, people are willing to pay more for something that is held to a higher standard.  For green products, nearly 70% of global consumers in 2012 were willing to pay a higher price for a green product when compared to the same product without the green features.

Courtesy of Euromonitor Internation Analyst Survey

At the end of the day, consumer behaviors have shown that green products are important to them, as they become more and more aware of the impact production and consumption has on the environment.  Shopping sustainable allows consumers the gratification of knowing they are doing something to make a difference in the global fight to preserve the environment.  Ultimately, the green movement has moved beyond simply following government regulations, putting the advocating in the hands of the individual.  While it is important that these guidelines be set, the most influential person in the green movement is each one of us.  Individual awareness and action is crucial to seeing that progress for a sustainable world continues, as this is our planet and we each must do our part in its protection.