15th Annual Consumer Report

2017 State of Sustainability in America_®

An annual consumer research study devoted to understanding consumer values and behaviors across health, the environment and corporate social responsibility, and their impact on purchase

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Summary

This report is the fifteenth annual U.S. report NMI has published on the state of the sustainability market, providing unparalleled insight and expertise in what drives this market and how to communicate with consumers, and identifying the strategic opportunities. It describes how consumer attitudes, behaviors, psychographics and lifestyle activities are evolving and changing as consumers try to become increasingly aligned with a more sustainable lifestyle.

Many companies have been involved and are becoming more involved in the sustainability space, taking measures to ensure they are mindful of their impact on society, the environment and local and global communities. Some uncertainty arises for companies, however, in how to measure what type and how much of an impact, if any, these sustainable initiatives are having. This report discusses how sustainable initiatives adopted by companies and brands can impact consumers’ initial trial, purchase intent and willingness to pay a premium and ultimately provides background and consumer insights to begin the ROI journey.

In addition, the intent of this report is to provide a solid overview of where the current sustainable marketplace stands, in addition to...

• how consumers interact in the green marketplace
• how segments within society view sustainability differently and what motivates this differentiation
• how companies’ sustainable initiatives can effect their bottom line
• what are some of the barriers to being 'green'
• what are the opportunities for future growth

We hope you enjoy this report. It is this knowledge and insight that provide the basis for identifying and uncovering opportunities in the Sustainability marketplace.

Executive Overview

• Sustainability has moved from what some viewed as a fad, to what has become a fundamental cultural shift. Those companies not engaged in the space will be squarely behind their competition as sustainability concerns are only poised to grow over the coming years. Ignoring this trend only gives the competition more time to establish market leadership.
• Demand for product transparency is on the rise, and brands that fulfill this demand by providing comprehensive product information from sourcing to manufacturing to “cause” efforts are positioned to gain favor.
• Consumers are also more interested than ever in aligning their personal values with the brands they buy, raising the bar for companies to clearly define and articulate their values. If consumers are aware that companies are mindful of their impact on society and the environment, it positively impacts their trial and repeat purchasing behavior along with price insensitivity.
• Specific consumer segments in the population exhibit various shades of green that are led by the “greenest” segment, the LOHAS segment, who is integral in driving sustainability to the mainstream.
• Since each consumer approaches sustainability somewhat uniquely, not all sustainable products will resonate with all consumers. Understanding consumers’ nuances and defining characteristics is important to develop the most effective messaging.
• Globalization will drive the need for more alignment of fair labor practices, ecosystem protection, sustainable farming, energy resourcefulness and many other practices.
• Water conservation and water quality are top concerns for consumers and are fast becoming major economic, political and social issues – companies will need to respond with a range of initiatives and innovations.
• Consumers are significantly more likely to feel that “no one” is currently protecting the environment, creating an opportunity for the establishment of such a leader.
• Consumer skepticism regarding a company’s sustainable efforts prompts consumers to seek solid proof of their legitimacy – make sure “transparency” is front and center as consumers evaluate company claims and messaging with more scrutiny.

GP - General Population U.S. Adults 18+

Millennials - born 1977-1998 (Ages 18-37)

Gen X - born 1965-1976 (Ages 38-49)

Boomers - born 1946-1964 (Ages 50-68)

Matures - born 1900-1945 (Ages 69+)

LOHAS - a segment of consumers defined as "Lifestyles Of Health and Sustainability"

LOHAS Leaders - the portion of LOHAS consumers who exhibit the highest integration into the sustainable lifestyle

LOHAS Followers - the portion of LOHAS consumers who are highly engaged in the sustainable lifestyle but show lower integration than the Leaders due to some price sensitivity and uncertainty

Sustainable Mainstream - consumers within the population that fall in the NATURALITES, DRIFTERS, or CONVENTIONAL segments who are adopting some sustainable attitudes and behaviors and feel somewhat empowered they can make a difference

All data is sourced from NMI's Sustainability Consumer Trends Database^® (SCTD) unless otherwise noted

We hope you enjoy this report. It is this knowledge and insight that provide the basis for identifying and uncovering opportunities in the Sustainability marketplace.