Green Consumers Favor Warehouse Clubs

June 5, 2008

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LOHAS and CONVENTIONAL consumers (a segment of the population driven to environmental sustainability by traditional means such as cost savings) spend more in warehouse clubs than other channels, such as grocery stores, drug stores, or supercenters, according to research from The Nielsen Company and the Natural Marketing Institute.

For example, LOHAS consumers spend 10 percent more in warehouse clubs given the distribution of sales across all shoppers. NATURALITES (health-motivated consumers) and UNCONCERNED consumers tend to shop in lower cost channels such as supercenters and dollar stores, each segment spending 43 percent more in supercenters than expected.

Compared to other consumers, LOHAS consumers are are the top spenders in many CPG categories offering a higher development of organic, natural or environmentally-friendly options, such as produce, cereal, soup, eggs, pasta, nuts and light bulbs. Opportunities for CPG manufacturers and retailers seeking to capture the LOHAS consumer wallet include non-carbonated soft drinks, such as isotonics and sports drinks, baking mixes, and indulgences, such as frozen novelties and syrups.

NMI estimates U.S. LOHAS products to be a $209 billion industry, and projects U.S. sales of LOHAS products to be more than $400 billion by 2010.

Nielsen and NMI’s analysis shows that 81 percent of LOHAS households purchase products labeled as organic, spending nearly four times as much as UNCONCERNED consumers (consumers not on the eco-radar). LOHAS consumers also show their commitment to a healthy, sustainable lifestyle through their purchases of products with health claims, such as gluten free, multi-grain and probiotic. For example, LOHAS consumers spend more than twice as much on sprouted grain and GMO (genetically modified organisms) free products.

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