Industrial Hemp’s Diversity Fits In With Key Sectors In The Analysis LOHAS Marketplace $209 Billion Strong
It’s Growing Even Greener…Hemp Branding for today’s Green Revolution! Every where you look these days you will see “Green” products and “Green” programming. There are “Green” cookbooks, “Green” clothing and even “Green” pet products. We have even seen “Green” toys for children. But what does it mean to be “Green”? Going “Green” to most people means being more environmentally responsible and making better, healthier choices for yourself, your family and our environment. Some might worry that they have to make drastic changes in their lifestyles in order to be “Green”. Others might see this as just a fad and a passing trend. The terminology we really do not feel it will be a passing fad, due to the entire whole concept of being more socially responsible and making better choices is here to stay.
There are many little things you can do to make an impact on our environment. Maybe not individually, but as a whole society those little things add up to big changes.
The Hemp Out Agency focuses on a wider environmental consciousness, by collectively marketing ‘hemp out’ of an alternative culture and into the mainstream. Hemp itself is a misunderstood little plant, not just for certain dubious members of society; it is a remarkably versatile substance, protective properties, feeds our planet, and supports sustainability.
Hemp Out is a social movement that views people’s social behaviour around natural food trends, growing green initiatives, and Hemp Food’s popularity in the marketplace.
Market Update from the LOHAS marketplace in Lifestyles Of Health And Sustainability we see more growth since the end of 2011 in the Industrial Hemp industry. Because Hemp falls into each of the key sectors:
1. Personal Health
2. Green Building
4. Natural Lifestyles
5. Alternative Transportation
6. Alternative Energy
7. Socially Responsible Investing
Exploring Each Sector
Personal Health, a broad category that encompasses natural and organic foods, dietary supplements, natural and organic personal care products, integrative healthcare, and mind/body/spirit products and services comprises more than half of all LOHAS marketplace sales, for a total market value of $118 billion. Its size indicates its position as the cornerstone of this marketplace: Most consumers enter the LOHAS marketplace through a “consumable” product, simply because such products are readily available and their cost is relatively low (compared to durable goods, such as a hybrid vehicle). Furthermore, these products have been in-market many years and consequently have high consumer awareness and familiarity.
The largest categories within this sector are:
1. Natural and organic foods, contributing just over 20 percent of this sector’s value. Purchases are split almost evenly between organic and natural foods and beverages, with a relatively small increment coming from foodservice. The fact that organic sales eclipsed natural sales is a major milestone for the organic industry, and given growth rates, organic sales is likely to far surpass natural product sales in the next few years.
2. Dietary supplements are the second largest category, contributing approximately 10 percent of the total LOHAS market value.
3. Natural and organic personal care products; integrative, complementary and alternative medicine therapies; and mind/body/spirit products and services (containing health clubs, fitness equipment, yoga, self-improvement products and services, natural/organic spas, and magazine, book, video tape, and DVD sales and rentals) round out this category, with a combined value of $72 billion.
Green Building is the second largest sector, and contributed nearly $50 billion to the LOHAS consumer marketplace. Its size is driven primarily by purchases of Energy Star certified homes, which is more than half of the sector’s value. Sales of other types of green homes, Energy Star certified appliances, flooring, solar panels, and recycled decking were also included in this sector. Sales of Energy Star certified appliances, approximately $14 billion, were the largest of these.
Eco-tourism sales, a particularly on-trend travel option in today’s market, amounted to $24 billion in 2005. These types of trips are growing as much as 34 percent per year, and there are significant opportunities to capitalize on this trend and broaden travel to include an array of experiences from spa services to canopy walks to cultural experiences. Many consumers continue to seek a sense of meaning from their purchases, and eco-tourism is in a unique position to deliver this benefit in multiple dimensions.
Natural Lifestyles, a sector that includes indoor and outdoor furnishings, social change philanthropy, and apparel, represented $10.6 billion in sales, or nearly 5 percent of the LOHAS marketplace. The largest sales came from recycled paper products, contributing nearly half of the sector’s value, followed distantly by natural and organic gardening (approximately $2.3 billion). CFLs (Compact Fluorescent Light Bulbs) are also included in this sector. In 2005, their sales were less than $300 million. However, merchandising activities by retailers such as Wal-Mart and Home Depot have significantly grown this category. The number of consumers purchasing CFLs has grown 17 percent annually since 2003. Many other products included in this sector, such as natural cleaning products, organic flowers, and natural pet products, were relatively niche products in 2005. While many of these products have been in-market for many years, new brands such as Method, Pet Promise, and Greenworks are revitalizing these market sectors; time will tell if these brands are strong enough to make a significant contribution to the total LOHAS market size.
Alternative Transportation, the fifth sector, includes sales of hybrid cars, car-sharing programs, and biodiesel fuel. At $5.8 billion, sales of hybrids contributed 95 percent of this sector’s value. With the proliferation of hybrid gas/electric engines, alternative fuels, car sharing, and other green types of green cars (such as components made of recycled content), this sector also shows significant potential to be a larger player in the overall LOHAS marketplace.
Alternative and Renewable Power sales to consumers equaled $380 million. The commercial market for renewable power appears to hold considerable potential, and consumer momentum continues to build. Barriers in understanding, perception and benefits, as well as perceived complications in switching to renewables will need to be overcome for consumers to embrace renewable power.
Finally, total consumer funds under socially responsible investment management in 2005 were $215 billion. Nearly five of every six of these dollars is invested in a socially screened mutual fund. Separate accounts, managed on a custom basis for an individual, is the second most common type of investment but is relatively small: $17 billion. Banks, credit unions and loan funds complete the sector, with $29 billion under management in 2005. The value of these investments is not included in the total market size, because of fluctuating volume based on market performance and their being investments rather than sales. That said, they are clearly part of the LOHAS lifestyle and marketplace.
As products rooted in the LOHAS lifestyle become more appealing to mainstream consumers, all of these sectors appear poised for above-average growth rates. Understanding the specific drivers that make a LOHAS product appeal to a mainstream consumer will be critical to realizing this success. Simultaneously, the ever-demanding LOHAS consumer will be looking for new and innovative green products that provide them with the feeling that they are truly leaders in the marketplace. Consequently, we continue to believe the marketplace holds abundant opportunities and deserving of additional investment and attention.
So in summary the value is an impressive $209 billion. Notably, the numbers represent all U.S. consumers’ purchases of LOHAS goods and services. Hemp’s diversity does fit into key sectors such as Health, Green Building, Social Responsibility, Alternative Energy, Natural Lifestyle, Alternative Transportation and we see this number of brands, services, and innovation growing! _ Teri Wallace CEO Hemp Out Agency