Green Marketing is Recession-Proof

Ad Age say: Sustainable-Product Sales Rise as Eco-Friendliness Goes Mainstream and Value Players Join the Trend

Datamonitor shows 458 launches so far in 2009 of package-goods products that claim to be sustainable, environmentally friendly or “eco-friendly.” If that pace holds all year, it will triple the number of green launches last year, which in turn was more than double the number in 2007. Seventh Generation CEO Jeffrey Hollender said his company’s sales were up 50% last year and 20% in March year over year despite Clorox, Church & Dwight and now SC Johnson entering the space. “The good news is that in general these products are faring better than most categories,” he said. “A lot of people would be desperate to have 5% growth.”
Consumers are still buying sustainable lines despite their higher cost. Nielsen Co. data show sales growth of organic food at 5.6% year over year in December from a year ago, though that’s down from the double-digit pace of years past, and its SPINS tracking service showed sales at natural-food stores up 10.9% to $4.2 billion last year. Though growth slowed in the fourth quarter, it was still more than 7% in December, far healthier than the rates at even top-performing grocery retailers such as Walmart or Costco.

“It looks like this green trend is going to survive the recession,” said Tom Vierhile, general manager at Datamonitor’s Product Launch Analytics.

1-greenchart-042009Based on number of new package-goods products bearing claims such as “sustainable,” “environmentally friendly” and “eco-friendly.”
Source: Datamonitor’s Product Launch Analytics

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