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.
Another reason people say they don't buy green is "low availability" of products - they aren't as easily accessible as conventional products. That shows there's still interest and if more companies offered such products the price would come down and they'd be more widely available.
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.
What does this mean for companies that have been greening their products, their manufacturing processes, their logistics, and their brands? Should you wait for the economy to improve and take a breath from all this greening?
We think not. First, businesses that invest in innovation during recessions tend to come out the other side stronger than competitors who don't invest. Second, greening operations brings numerous benefits to the bottom line in terms of savings from increased efficiency, reduced waste, less threat of liability because of chemical use, and long term branding.
If your company operates much more efficiently and saves significant money that way, can you afford to sell green products at lower prices? The answer could well be "yes."
Who is Buying Green?
People who are committed to buying green haven't changed their purchasing behavior at all since the recession began. In fact, the percentage of "Dark Green" consumers has risen slightly. People who choose green products for most of their purchases rose 1% in 2011 and now make up 9% of the American market.
It's not surprising that people who are less knowledgeable about and committed to purchasing green products would lose interest during hard times. Sure, the percentage of "light green" consumers - people who "sometimes" buy green - dropped from 76% to 60% between 2009-2011, but that still leaves a solid majority of Americans as "light green" - they will return to the green market as the economy improves.
This is especially true given that the profile of green purchasers is becoming less niche and more mainstream - it's not so easy anymore to say a particular age group or income level buys green. Although "deep green" purchasers still tend to be slightly more affluent and more educated, the difference is ever less pronounced.
