An Introduction to the Green Marketplace

Green consumers have become a driving force behind how companies do business, and they are creating a new economy based on justice and sustainability. These consumers, described as LOHAS (Lifestyles of Health and Sustainability) consumers, put $230 billion dollars into the economy each year—and those numbers are growing. To tap into that growing consumer group, green businesses need to understand the labels, numbers, trends, and values unique to the LOHAS consumer.

According to Conscious Media and Lifestyles of Health and Sustainability (www.lohas.com), 63 million adults in the US are considered LOHAS consumers. They are attracted to products and services focused on health and the environment, and are more likely than the general population to buy a product from a company with values like their own.

The LOHAS label is often used interchangeably with "Cultural Creative," a term developed by Paul Ray and Sherry Anderson in their 2001 book Cultural Creatives: How 50 Million People Are Changing the World. Through sociological study, Ray and Anderson describe a small nation of Americans (50 million people—about the size of France) who seek out lives of creativity, justice and sustainability. Their values are often reflected in their purchasing, and they are considered a strong (and growing) part of the LOHAS market.

Shades of Green: Breaking Down the LOHAS Consumer

LOHAS Consumers and Cultural Creatives are broken down into categories based upon their likelihood of buying green. Different organizations and companies have different labels for each segment—marketing firm RoperASW (now part of GFKNOP (www.nopworld.com)) breaks down consumers into shades of green (True Blue Greens are most likely to buy green, while Sprouts are sitting on the fence); Paul Ray describes the base as "Core Cultural Creatives," followed by "Greens," and the Hartman Group (www.hartman-group.com) defines consumers based on their proximity to the Core Consumers (there are core consumers, mid-level consumers, and periphery consumers).

In each of these models, the most devoted consumers make up about 15 percent of American adults—these are consumers who are most likely to pay a premium for a product that reflects their values. The majority of LOHAS consumers, however, are in the middle ranks; these are consumers who connect with sustainable values, but who do not always seek out those values in the marketplace. Consumers in the middle ranks of the Green Marketplace are influenced by a range of factors in purchasing an item, with values of sustainability varying in importance.

Defined by Values

Mainstream marketing usually means breaking consumers into segments to better target an audience of a specific age and gender. The Green Marketplace is not easily broken down into such demographics. As Ray and Anderson found in their research of Cultural Creatives, most were demographically identical to mainstream America, but they have "totally different cultures and buying patterns." Rather than being defined by demographics, LOHAS consumers are defined by the values they bring to the marketplace, values that are behind $230 billion of spending each year.

Members of Green America’s Green Business Network™ stand in a unique and exciting position in the Green Marketplace. CABN members have proven their commitment to sustainability and are part of a consumer movement with the power to change an entire economy.

This resource guide will help connect you with the information you need to understand and reach out to the Green Marketplace.

Next page: Meeting the LOHAS Consumer »