The economic downturn will not stop the growth of ethical consumerism, the Co-operative Bank declared today (Friday).
The economic downturn will not stop the growth of ethical consumerism, the Co-operative Bank declared today.
Its ninth annual report into green spending showed the overall ethical market in the UK was up by 15% to £35.5bn in 2007.
Spending on ethical food and drink, which includes organic products, Fairtrade goods and free-range eggs, was up by 14%, from £5.1bn to £5.8bn.
This is despite the fact that many commentators are predicting that consumers will switch their priority from “values” to “value” in the face of recession.
The Co-operative cited the impact of green legislation as a key factor that would continue to drive sales in a number of product areas, including light bulbs.
Dick Parkhouse, managing director for retail at the bank, said: “Of course, the state of the economy will impact on consumer spending but this report shows that bold Government action can stimulate markets, save consumers’ money and protect the environment.”
The report shows that last year, on average, every household in the UK spent £707 in line with their ethical values, up from £630 in 2006.
Spending on ethical personal products, such as humane cosmetics, rose by 4% to £1.4bn.
But overall ethical spend at £35.5bn is still a small proportion of the total annual consumer spend of more than £600bn.
The Co-op also argued: “Consumers’ emotional attachment to many ethical products is now well embedded, and we would argue that these areas will have an advantage over other markets in a downturn, particularly where the premium for the ethical choice is relatively low, as with Fairtrade.
“In addition, some ethical choices appeal to consumers’ economic sensibilities as much as to their emotions, and energy-saving products with an economic payback would appear well-placed to deal with the economic climate.”
Some 83% of shoppers said they supported local shops or suppliers in 2008, the same percentage as in 2007.
More than half (51%) said they had bought primarily for ethical reasons, up from 47% the previous year.
| Ethical Food & Drink | 2006 | 2007 | Growth |
| Organic | £1,737m | £1,911m | 10% |
| Fairtrade | £285m | £458m | 61% |
| Free-range eggs | £259m | £314m | 21% |
| Free-range poultry | £116m | £130m | 12% |
| Farmers’ markets | £225m | £220m | -2% |
| Vegetarian products | £664m | £826m | 24% |
| Freedom foods | £18m | £28m | 56% |
| Sustainable fish | £55m | £70m | 27% |
| Dolphin-friendly tuna | £223m | £237m | 6% |
