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GreenMoney Journal - publishing since 1992
Fall 2010 issue
Socially Responsible Investing – Better Companies, Better Communities
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New LOHAS Market-Size Data Released: A $209 Billion Opportunity
New research provides first published update to LOHAS market size since 2000
The Natural Marketing Institute (NMI), in conjunction with Silvercliffe Media Inc., announced
recently that consumer spending within the U.S. LOHAS market for 2005 was $209 billion. LOHAS is an
acronym for "Lifestyles Of Health And Sustainability" and describes an integrated, rapidly growing
market for goods and services that appeals to consumers who have a meaningful sense of
environmental and social responsibility and incorporate those values into their purchase decisions.
According to NMI Managing Partner Steve French, "We are extremely pleased to announce the
release of updated LOHAS market-size numbers - the first update since figures were developed for
the year 2000. After six months of extensive research, the latest numbers reflect a high-growth
marketplace with rapidly increasing mainstream interest and consumer engagement. In an effort to
provide clients with an all-encompassing look at the LOHAS market, this new market-size information
will be the perfect complement to the attitudinal and behavioral data from NMI's annual LOHAS
Consumer Trends Database™. We now have a complete suite of tools in order to explore consumer
opportunities within the hottest trend in the marketplace." To conduct the research, NMI partnered
with Silvercliffe Media, headed by Frank Lampe. Lampe was a co-founder and principal in Natural
Business Communications, which produced and published the original LOHAS market sizing.
"This research provides a new, more accurate benchmark for companies and organizations
interested in participating in this now global phenomenon being driven by values-based consumers,"
says Lampe, president of Silvercliffe Media. "The LOHAS concept is less than seven years old.
Considering the growth and dynamics at play in an admittedly new marketplace, we were able to
create a snapshot that should help both further define the space as well as support its growth."
Several changes were implemented for the 2006 study. This update focused exclusively on
products and services for consumers and did not include business-to-business sales. A reexamination
of the categories also took place. "We determined that a reevaluation of the categories and the
products and services was necessary to create a new baseline in response to evolving market
realities," states Gwynne Rogers, NMI's LOHAS Business Director. In addition, some of the
categories that were originally part of the LOHAS market in 2000 have now mainstreamed beyond the
LOHAS definition. Such items include air purifiers, bottled water and massage therapy, among
others. In some cases, NMI and Silvercliffe quantified the percentage of a category's sales that
was related to LOHAS values or behaviors, rather than including the entire category.
The
research study was conducted over a six-month period in 2006 and represents data culled from an
extensive array of primary and secondary research from industry groups, the U.S. government, and
other sources. Based on this research, U.S. consumer LOHAS spending by the five general segments
for 2005 is as follows (with representative sub-categories listed):
- Personal Health:
$118 billion (includes natural/organic foods, supplements, personal care, alternative medicine,
yoga, health/fitness, media)
- Eco-Tourism: $24.2 billion (includes eco-travel and
adventures, new age/spiritual travel)
- Alternative Energy: $400 million (includes green
pricing programs, renewable energy certificates (RECs))
- Alternative Vehicles: $6.1 billion
(includes hybrid vehicles, biodiesel, car sharing)
- Green Building: $49.7 billion (includes
ENERGY STAR products and homes, other green-certified homes, materials and solar panels)
- Natural Lifestyles: $10.6 billion (includes home furnishings/supplies, natural pet
products, cleaners, apparel, philanthropy)
In addition, socially responsible
investing (including privately managed accounts, SRI screened mutual funds, etc.) represented an
additional $215 billion, however this number was not included in the total LOHAS market size due
the unique nature of these activities as "investments" rather than "expenditures."
Specific details regarding the market size of sub-categories and growth rates, along with
insightful commentary relating to the market-size data is available as part of NMI's 2006
Understanding the LOHAS Market™ published report series. For more information on these research
reports, please contact Nancy White at 215-513-7300, ext. 225 or nancy.white@NMIsolutions.com
About:
NMI and Silvercliffe Media
NMI is a strategic consulting, market research, and
business development company specializing in the health, wellness, and sustainability marketplace.
For more information on NMI's proprietary research reports and services, visit NMI's web site at
http://www.NMIsolutions.com
Silvercliffe Media is a media, communications and
market-strategy consultancy based in Lafayette, Colo. The company focuses on the LOHAS and healthy
living marketplace. For more information, please visit http://www.silvercliffemedia.com
Source: NMI
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