Dec 15, 2011

The Low-Down: How the Recession Is Changing Behavior Towards Green Products and Companies

Money talks. And the lack of money shouts. 65% of consumers surveyed say they are purchasing less of everything since the recession began and green, or environmentally sustainable products are no exception.

Prior to the recession almost 76% of Americans ranked themselves as 'light green' consumers. This meant they were inclined to buy green products though not necessarily fervent environmentalists. That number is now down to 60%. Most cite cost as the issue. Like most Americans, their family incomes are lower and so their purchasing habits are more frugal. Since green products are not infrequently more expensive than their competitors, that affects sales. 

But many also cite less availability of green products. This may be a function of where they shop in order to save - upscale stores tend to carry more green. It may also be that merchants are stocking fewer green items because they have noticed the same developments. 

...SustainableBusiness.com reports:

The Green Revolution is turning out to be more of a Green Evolution, at least for now. 

Before 2009, the number of green products on the market was rapidly increasing as was competition among industry players to be seen as "green" among an increasingly sophisticated public. It was close to hitting a critical mass, with 76% of Americans qualifying as "light green consumers"
- those who consistently seek out and buy some green products or services. 

But people are generally purchasing fewer green products as a result of the recession, according to a survey, "The Green Evolution" by Grail Research. 

That's not surprising news as 65% of respondents say they've changed their purchasing behavior because of the recession - most of them buy less overall, and those products they buy are less expensive ones. Since the biggest barrier to purchasing green products has always been the perceived higher price, it makes sense that green purchases go down when times are tough. 
....Tough times also means that "green" fades into the background as people focus on jobs and the economy. The current hyper-partisan atmosphere where action on climate change is taboo, environmental laws are under attack, and the intense negative spotlight on Solyndra and the solar industry is causing confusion regarding the importance of green and its attributes.