Green products might not be recession-proof after all.
Market research firm Mintel noted that premium-priced green products might be relocating to the bottom supermarket shelves as people's priorities are now changing because of the current economy.
According to their recent US consumer survey data,over half of respondents (54%) said they would buy more green products but the products are too expensive. Mintel said there is a hesitance towards buying green based on price.
"A substantial number of shoppers are now struggling just to provide the basics for their families, so green living is no longer top of mind for many Americans," said Marcia Mogelonsky, Ph. D and senior research analyst at Mintel.In Mintel's January report on environmentally-friendly cleaners, 52% of shoppers who buy household cleaning products said they feel green cleaning products are too expensive.
The market research firm noted that companies who provide the benefits of green (health and safety benefits) in products that have the same quality, convenience, appeal and trust, and most of all at a reasonable price as the traditional products will enjoy success despite the recession.
Though the recession is expected to impact sales through 2009, Mintel forecasts 19% growth for green products overall through 2013.
Markets including green personal care and environmentally friendly household cleaners are expected to perform especially well. Organic food, the most mature segment, will experience slowing but steady growth over the next five years, despite lower prices from private label organics and competition from natural and local foods.