The Frankie Boyer Show Targets the
Growing LOHAS Market
Lifestyles of Health and Sustainability (LOHAS) describes a $228.9 billion U.S. marketplace for goods and services focused on health, the environment, social justice, personal development and sustainable living, according to publishers, Conscious Wave. Approximately 30 percent of the adults in the U.S., or 50 million people, are currently considered LOHAS Consumers.
What does this mean to you? Lohas consumers have a profound sense of environmental and social responsibility. Their purchases are based on intelligent, fact based information. Frankie and her professional guests supply this significant market segment with the resources they are looking for to make conscious buying and investment decisions.
LOHAS Market Sectors
Sustainable Economy Green building and industrial goods Renewable energy Resource-efficient products Socially responsible investing Alternative transportation Environmental management US Market--$76.47 billion |
Alternative Healthcare |
Healthy Lifestyles |
Personal Development |
Ecological Lifestyles |
|
50 million consumers believe there are interconnections between global economies, cultures, environments, and political systems play a large role in the holistic worldview of the typical LOHAS Consumer, but equally important are the interconnections of mind, body and spirit within individuals. This focus on Personal Development, with the ultimate goal of achieving his or her full human potential, is of utmost concern to the Cultural Creative. The current growth in this market group strongly supports the notion that spirituality is no longer relegated to the New Age periphery but is undeniably migrating to the center of mainstream cultural awareness.
NOMADICS (representing 38% of the population) are the largest segment, representing nearly one in four adults. They are less resolute in their LOHAS attitudes, though still show moderate levels of related concern and select LOHAS behaviors (such as recycling, among others).
Continuing to move across the spectrum, CENTRISTS represent 27% of the U.S. population, and are a group where a lack of relevance in LOHAS attitudes and behavior becomes more evident.
Finally, INDIFFERENTS represent 12% of the population, and are so disinterested that they do not even consider most environment or related platforms. To them, attitudes and behavior are driven by immediate needs, not the health and sustainability of the planet or society.
No Need to Compromise/Values-Driven Consumption
The Role of Corporate Social Responsibility
While it is difficult to put a value on the benefits of corporate citizenship, NMI’s research does indicate that it translates into favorable consumer and investor behavior. This is especially true when looking at LOHAS consumers, 68% of whom state that knowing that a company is mindful of its impact on the environment and society makes them more likely to buy their products and services, and 52% state that it makes them more likely to buy stock.
While it is difficult to put a value on the benefits of corporate citizenship, NMI’s research does indicate that it translates into favorable consumer and investor behavior (Figure 3). This is especially true when looking at LOHAS consumers, 68% of whom state that knowing that a company is mindful of its impact on the environment and society makes them more likely to buy their products and services, and 52% state that it makes them more likely to buy stock.
Potential Market
The Natural Product Market segment represents $51.39 Billion in sales according to Natural Products Merchandiser. These figures straddle natural product, mass market, club, convenience store, Internet and network marketing. Nearly all food categories realized double digit growth in 2005. Organic alone grew 15.7% while natural personal care/other sales increased 12.7%
What Does the Future Hold?
To formulate upcoming consumer trends, NMI monitors the attribute drivers of particular product choices. Of the markets measured this year, the largest increases were in the food/beverage and green building industries. The attributes with the biggest growth rates are shown in Figure 4.
Figure 4. Largest Increases in LOHAS Product Attribute Drivers
(% LOHAS consumers stating the following are important in product purchase influence)
|
|
% LOHAS - 2003 |
% LOHAS - 2005 |
Compound Annual Growth |
Food & Beverage |
Contains soy |
7% |
14% |
+100% |
Organically grown |
25% |
40% |
+63% |
|
No artificial colors |
31% |
47% |
+50% |
|
Green Building |
ENERGY STAR qualified |
37% |
68% |
+35% |
No Synthetics |
19% |
25% |
+15% |
|
Natural |
32% |
38% |
+10% |
All the way across the board, there are stories and examples that this is a good idea,” says Christina Page, a member of the Commercial & Industrial Services team at the Snowmass, Colo.-based Rocky Mountain Institute (RMI). “It is possible to be both ecologically sustainable.
According to a recent government survey, 36% of all US adults use some sort of complementary and alternative healthcare**.
Consumers are driving the CAM market. One in three US adults now uses some sort of complementary and alternative healthcare**.
Practitioners have been the most consistently growing sales channel for supplements since 1995 *.
NBJ estimates that CAM services represented $34 billion in revenues in the U.S. in 2003, with the three top modalities being chiropractic, massage therapy and traditional Chinese medicine/acupuncture accounting for 87% of the total*.
The $34 billion in U.S. CAM services in 2003 represents almost 3% of the $1.5 trillion in U.S. personal healthcare spending. CAM growth of 7% in 2003 is now moving closer to the 9% growth in the more mature U.S. healthcare business**.