Consumers and Sustainability: Food and Beverage, Personal Care, Household Cleaners, and OTC Medications and Supplements

Sustainability means different things to different people. Asked to identify what the term means to them, consumers most frequently respond “the ability to last over time” (76%) and “the ability to support oneself.” Sustainability is also strongly associated with environmental concerns, whereby consumers are being challenged to develop and express an “eco-consciousness” in their daily habits and purchases. Thus, nearly half of consumers associate sustainability with conserving natural resources and with recycling.

But using “eco-conscious” or “green” as synonymous with sustainability unduly limits the term. “Green” falls short as a description for the variety of social, economic and environmental issues that real-world individuals believe are important to sustaining themselves, their communities, and society at large. Adoption of sustainable products mirrors the health and wellness progression that The Hartman Group has previously reported, in which consumers first consider the impacts of things in the body, followed by on the body, and finally around the body.

As consumers become more educated about the environmental, social, and economic implications of their shopping habits, their health and wellness motivations dovetail with societal concerns, such that four zones of sustainability become relevant to purchasing choices:

• The Personal Benefit Zone
• The Environmental Zone
• The Social Zone
• The Economic Zone

Within the personal care market, “natural” remains a meaningful reference point for a variety of personal care products, even if the term has lost significance in other packaged good categories. Moreover, attributes such as “chemical free” and “not tested on animals” are important considerations for purchasers of conventional and sustainable personal care products alike.

Household cleaning products with a sustainable side have begun to enter the American mainstream. Formerly, the act of cleaning was a form of “germ warfare,” and entailed a combative relationship between consumers and their environment. Recently, however, more consumers talk about the idea of working with nature, not against it, to naturally restore balance to their home environment.

Increased media coverage of tainted products due to human error and globalized production has increased consumer awareness of the potential negative impacts of over-the-counter (OTC) medications and supplements, whether in pill or other forms. Thus, about half of the over-the-counter medicine and supplement products in the U.S. market now feature some type of sustainability claim, whether based on manufacturing practices, product formulation, or packaging.

Report Methodology

This report series was jointly produced by The Hartman Group and Packaged Facts, and is based on The Hartman Group’s 2009 multi-category study, Sustainability: The Rise of Consumer Responsibility. In addition, Packaged Facts provides an update of consumer attitudes and spending based on various Packaged Facts market-specific studies, a Packaged Facts February 2009 online consumer poll, and Experian Simmons national consumer surveys fielded November 2008 through June 2009.

The Hartman Group Quantitative and Qualitative Methods

This report draws primarily on an online survey of 1,856 U.S. adults conducted in September 2008 by The Hartman Group to understand consumer attitudes and behaviors related to sustainability. The sample was drawn from a panel of adult U.S. consumers with Internet access, and was designed to provide good representation of the U.S. population according to geographic area, age, gender, race and income. The Hartman Group also conducted qualitative research on sustainability in three markets (Seattle, Dallas, and Columbus) during August 2008, using consumer ethnography with fifty consumers as the cornerstone of qualitative research. Ethnographic interviews included one-on-one conversations at an individual’s home or at a specific retail setting, as well as group interviews also at consumers’ homes. These engagements garnered more than 100 hours of in-depth, revelatory consumer discussion.

Chapter 1: Methodology

A Joint Publication of The Hartman Group and Packaged Facts

The Hartman Group Quantitative and Qualitative Methods

About The Hartman Group, Inc

About Packaged Facts

Chapter 2: Sustainability & the American Consumer

Establishing a Definition of Sustainability

Figure 2-1: What “Sustainability” Means to Consumers

Sustainability Concerns and Purchasing Decisions

Figure 2-2: Frequency of Purchase Decisions Based on Sustainability Concerns

A Consumer-based Model of Responsibility

Figure 2-3: The Four Zones of Sustainability

Experiential Triggers

Figure 2-4: Triggers for Awareness

Informational Triggers

Figure 2-5: Top Sources of Information on Sustainability

The World of Sustainability: Core to Periphery

Figure 2-6: The World of Sustainability

Motivations and Barriers to Purchase

Convenience

Price

Expert Opinion

Experience

Knowledge

Table 2-1: Motivations and Barriers for Sustainable Purchases

Chapter 3: Foods, Beverages & the Sustainability Consumer

The Food Market and the Zones of Sustainability

Personal Benefit Zone of Sustainability

Environmental Zone of Sustainability

Organic

Figure 3-1: Properties Associated with the Term “Organic”

Local

Gardening

Vegetarianism

Social Zone of Sustainability

Local Satisfies Desire for Connection

Humane Treatment of Animals

Economic Zone of Sustainability

Buying Local

Fair Trade

Product Adoption Patterns

Figure 3-2: Adoption of Sustainable Foods and Beverages

Freshness is Foremost

Purchase Criteria

Table 3-1: Purchase Criteria for Sustainable Foods and Beverages

Packaging Issues

Table 3-2: Dos and Don’ts for Sustainable Food and Beverage Packaging

Quantitative Findings on Sustainable Food and Beverage Purchases

Table 3-3: General Food and Beverage Categories and Corresponding Sustainable Versions

Figure 3-3: Purchasing of Foods and Beverages (By Product Category: General Category vs. Sustainable Versions)

Figure 3-4: Current Market Reach of Sustainable Food and Beverage Products (By Product Category)

Figure 3-5: Current Market Reach and Immediate Growth Opportunity of Sustainable Food and Beverage Products (By Product Category)

Figure 3-6: Willingness to Pay a Premium (20% More) for Sustainable Foods and Beverages (By Product Category)

Summary and Key Insights

Tenets for Package Communications

Chapter 4: Personal Care & the Sustainability Consumer

The Personal Care Market and the Zones of Sustainability

Personal Benefit Zone of Sustainability

Environmental Zone of Sustainability

Recognizable Ingredients

Organic

Wild-Grown, Hand-Harvested

Chemical-Free

Social Zone of Sustainability

Humane Treatment of Animals

Motivations and Pathway(s) for Adoption

Attributes of Sustainable Personal Care

Natural is the Foremost Attribute of Sustainable Personal Care

Hierarchy of Specific Attributes

Table 4-1: Chemicals Consumers Avoid in Sustainable Personal Care Products

Relevant Personal Care Certification(s)

Cruelty Free

Organic

Other Certifications

Personal Care Product Packaging

Table 4-2: Packaging Do’s and Don’ts for Sustainable Personal Care Products

Purchase Criteria

Table 4-3: Purchase Criteria for Sustainable Personal Care Products

A Note about Sustainable Cosmetics

Quantitative Findings on Sustainable Personal Care Purchasing

Table 4-4: General Personal Care Product Categories and Corresponding Sustainable Versions

Figure 4-1: Purchases of Personal Care Products (By Product Category: General Category vs. Sustainable Versions)

Figure 4-2: Current Market Reach of Sustainable Personal Care Products (By Product Category)

Figure 4-3: Current Market Reach and Immediate Growth Opportunity of Sustainable Personal Care Products (By Product Category)

Figure 4-4: Willingness to Pay a Premium (20% More) for Sustainable Personal Care Products (By Product Category)

Summary and Key Insights

Tenets for Package Communications

Chapter 5: Household Cleaners & the Sustainability Consumer

The Household Cleaners Market and the Zones of Sustainability

Personal Benefit Zone of Sustainability

Environmental Zone of Sustainability

Safety

Sensory Experience

Homemade Cleaners

Social Zone of Sustainability

Humane Treatment of Animals

Motivations and Pathway(s) for Adoption

Attributes of Sustainable Household Cleaners

Natural Is the Foremost Attribute of Sustainable Household Cleaners

Relevant Household Cleaner Certifications

Cruelty Free

Packaging for Household Cleaners

Table 5-1: Packaging Do’s and Don’ts for Sustainable Household Cleaners

Purchase Criteria

Table 5-2: Purchase Criteria for Sustainable Household Cleaners

Quantitative Findings on Sustainable Household Cleaners

Table 5-3: General Household Cleaner Categories and Corresponding Sustainable Versions

Figure 5-1: Purchases of Household Cleaners

Figure 5-2: Current Market Reach of Sustainable Household Cleaners

Figure 5-3: Current Market Reach and Immediate Growth Opportunity of Sustainable Household Cleaners

Figure 5-4: Willingness to Pay 20% More for Sustainable Version of Household Cleaners

Summary and Key Insights

Tenets for Package Communications

Chapter 6: OTC Medicines and Supplements & the Sustainability Consumer

The OTC Market and the Zones of Sustainability

Personal Benefit Zone of Sustainability

Environmental Zone of Sustainability

Safety and Waste Disposal

Consumer and Employee Safety

Humane Treatment of Animals

Motivations and Pathway(s) for Adoption

Attributes of Sustainable OTC Medications and Supplements

Natural and Safe Are the Foremost Attributes of Sustainable OTC Meds and Supplements

Hierarchy of Specific Attributes

Relevant OTC Medication and Supplement Certification(s)

Federal Drug Administration

Cruelty Free

Organic

OTC Medication and Supplement Packaging

Table 6-1: Packaging Do’s and Don’ts for Sustainable OTC Meds and Supplements

Purchase Criteria

Table 6-2: Purchase Criteria for Sustainable OTC Meds and Supplements

Quantitative Findings on Sustainable OTC Meds & Supplements

Table 6-3: General OTC Health Care Products Category and Corresponding Sustainable Versions

Figure 6-1: Purchases of OTC Health Care Products

Figure 6-2: Current Market Reach of Sustainable OTC Health Care Products .67

Figure 6-3: Current Market Reach and Immediate Growth Opportunity of Sustainable OTC Health Care Products

Figure 6-4: Willingness to Pay 20% More for Sustainable Version of OTC Health Care Products

Summary and Key Insights

Tenets for Package Communications

Chapter 7: Market Update

Responses to Economic Downturn

Sustainability Convictions Largely Unchanged by Recession

Table 7-1: Recent Trends in Sustainability Psychographics: Opinions, Winter 2007/08 Through Spring 2009

Table 7-2: Recent Trends in Sustainability Psychographics: Behaviors, Winter 2007/08 Through Spring 2009

Table 7-3: Percent of Adults Agreeing With Selected Psychographic Statements About the Environment, Spring 2009 (U.S. adults)

Sustainable Products Move Into Mainstream

Market Update: Food and Beverage

Table 7-4: Patterns for Agreement With Statement, “When Shopping for Food, I Especially Look for Organic or Natural Foods,” Winter 2007/08 Through Spring 2009

Table 7-5: Percent Agreeing with Selected Psychographic Statements on Natural or Organic Foods, February 2009 (U.S. adults)

Projected Market Growth for Natural and Organic Foods

Table 7-6: Projected U.S. Retail Dollar Sales of Natural and Organic Foods and Beverages, 2009-2013

Local and Bulk Foods: Beyond the CPG Aisles

Market Update: Personal Care

Product Efficacy vs. Product Safety

Table 7-7: Percent Agreeing with Selected Psychographic Statements on Natural/Organic Health and Beauty Care Products, February 2009 (U.S. adults)

Only a Minority Are Inclined to Cut Back

Figure 7-1: Percent of Natural HBC Product Purchasers Who Anticipate Spending Less on HBC Products Within the Next Twelve Months, February 2009 (U.S. adults who purchase natural HBC products)

Market Growth for Natural Personal Care Remains an Upward Arc

Table 7-8: Projected U.S. Retail Dollar Sales of Natural Personal Care Products, 2008-2014 (dollars in millions)

Market Update: Household Cleaners

Figure 7-2: Percent of Adults Who Buy Natural or Organic Household Cleaning/Maintenance or Laundry Care Products, February 2009 (U.S. adults)

Market Update: OTC Medications and Supplements

Figure 7-3: Percent of OTC Medicine and Supplement Products Marketed With Natural/Organic or Negative Content Claims, 2005 vs. 2009(P)