Green Confidence

There is a pent-up demand from consumers for green products, but manufacturers and retailers need to understand that this is not a "one-color-fits-all" market. Over the past year, the Green Confidence Index tracked consumer sentiment for all things green, from cars to clothing to cleaning products, and it's clear the market has moved from minor to mainstream.

At least, that's what we've learned from the Green Confidence Index, a joint effort of GreenBiz.com, Earthsense and Survey Sampling International. The monthly index is based on surveys of more than 2,500 online adults. Results are weighted by demographics to be representative of the U.S. adult population. It tracks three major metrics:

• Responsibility: How leaders and institutions are perceived to be addressing environmental issues.
• Information: The adequacy of information available to make informed decisions.
• Purchasing: Past and future purchases of green products both large and small.

So who's taking the most responsibility? It's the individual consumer. At least, that's what "you" are saying. Those groups getting the lowest ratings are "major companies and manufacturers." Retailers and manufacturers must engage consumers on a personal level, helping them see you as an ally rather than the enemy.

In terms of information, the Index tracks consumer trends, including what it takes for consumers to significantly increase green purchases. The answer depends on the product category. As Figure 1 illustrates, price is the biggest barrier for food and personal/household care items. In all three categories, brand was of least importance.

Purchasing has been the most volatile component. The expressed intent to purchase green has consistently been at a level twice that of consumers' actual purchases, and that's not news. What is news is that reported past purchases have been increasing in line with an improvement in the economy. This is an indication that pent-up demand and a growing economy can change the landscape for green products.

But it's not a matter of "build it and they will come." Companies will need to find the right messages, delivered to the right audiences using the right media.

Companies, like Wal-Mart and Clorox, are gaining share through green efforts. After many starts and stops, the market for green is coming into its own and the opportunities are there for new leaders to emerge.