Lifestyle Impacts Eco-Package Choice
New study reveals potential market of 48 million consumers who know—and buy—the sustainability concept.
By Editor in Chief Mark Spaulding -- Converting Magazine, 12/1/2006
For companies actively promoting sustainable materials and the converters using them in more environmentally-friendly packaging for their CPG customers, the best target audience among 300 million US consumers may be the LOHAS—those with “Lifestyles of Health and Sustainability,” says Gwynne Rogers, business director of the Natural Marketing Institute (www.nmisolutions.com). Rogers spoke at the recent Sustainable Packaging Forum in St. Paul, MN.
Based on its annual tracking study of 2,000+ US households, now in its fifth year, the NMI has found that LOHAS consumers currently make up 16 percent of the general population. These individuals are “dedicated to personal and planetary health. Not only do they make environmentally-friendly purchases, they also take action—buying green products and supporting advocacy programs,” Rogers says.
Less is moreIn ranking various traits as “very important” for their food and beverage products, more than half of the LOHAS consumers list recyclable packaging, eco-friendly packaging materials and biodegradable packaging. Slightly fewer mention minimal packaging, and 12 percent say they purposely use products with less packaging in an effort to protect the environment.
High percentages of LOHAS consumers also want to know what positive actions CPGs are taking for the environment. Among 30 various measures in the NMI study, 77 percent of respondents want these companies to use materials from renewable resources, and 64 percent want them to use less packaging.
It should come as no surprise that certain food and beverage categories such as organics and soy-based products have a higher appeal when incorporating environmentally-friendly (or more sustainable) packaging materials. What might be surprising is that LOHAS consumers buy at least twice as many of these products as other segments (see chart). Some brands already aligned with eco-friendly packaging include Organic Valley, Horizon Organic, Amy's, Cascadian Farms and Naked Juice.
At any price?Clearly, the LOHAS segment is knowledgeable, holds strong opinions and acts on its viewpoints. But NMI research also shows that this group consistently puts less attention on price, especially when buying from a conscientious CPG or when buying an eco-friendly product. Two-thirds of the segment are willing to spend 20 percent more for products made in an eco-friendly and sustainable way, while only 9 percent say they make purchase decisions solely on price.
Converters helping CPGs introduce eco-friendly packaging to a receptive audience (the 48 million LOHAS consumers) can help their customers achieve three profitable objectives: Allow for better sales targeting, test the supply chain and their operations to ensure quality standards, and adjust the sustainability message to what consumers best respond to, Rogers explains.
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