The Ethical Consumerism Report 2007

Dear All,

Please find attached the latest 'Ethical Consumerism Report 2007' for the UK conducted by The Co-Operative Bank. In summary:

Household expenditure on ethical goods and services has almost doubled in the past five years: on average, every household in the UK spent GBP664 in line with their ethical values in 2006 compared with just GBP366 in 2002, an increase of 81 per cent. However, whilst the overall ethical market in the UK is now worth GBP32.3 bilion a year, up nine percent from GBP29.7 billion in the previous year 12 months, it is still a small propotion of the total annual household consumer spend of more than GBP600 billion.

Key Findings:

• Ethical consumer market: Six per cent of the UK adult population (2.8 million people) are committed ethical consumers, shopping for ethical products and services every week
• Ethical behaviours: Across eitht seprate indicators, between 199 and 2007, UK consumers, across all age groups, reported an increase predisposition to ethical behaviours
• Average spend per household: The average amount spent on ethical products and services has almost doubled from GBP366 per household in 2002 to GBP664 in 2006
• Food and drink: Ethical sales now account for 5.1 per cent of the UK's total food and drink sales. Including consumer boycotts, this rises to 6.8 per cent. Sales of Fairtrade products have increased 46 per cent to GBP285 million
• Green home: Within an overall spend of GBP6.2 billion on environmentally friendly and energy efficient home products, spend on energy efficient light blubs has increased by 44 per cent to GBP26 million
• Eco-travel and transport: Six per cent growth to GBP1.7 billion reflects limited consumer choices for eco-travel. However, an increased proportion of consumers did report using public transport for environmental reasons, in 2006
• Ethical personal products: Overall spend is static at GBP1.5 billion. Consumers boycotts of clothing retailers did grow by 20 per cent reflecting a concern amongst some consumers that low prices could mean poor labour conditions
• Ethical finance: At GBP13.3 billion, 2006 saw the largest ever increase of monies channelled into ethical forms of finance, with a net increase of GBp1.7 billion over the 2005 value

The total value attached to ethical consumerism in the UK stands at GBP32.3 billion in 2006. This reflects the total economic value attached to the broad range of personal choices, be they food, finance or charitable donations. The luxury ethical market is represented within part of the whole sum. At some level the consumer is influenced by a concern for the environment, animal welfare or human rights.

In addition it reflects the economic value that consumers attach to ethical choices to support their community via local shopping or to boycott brands whose behaviour conflicts with their ethical priorities. At the end of the day its about choice and giving the consumer the knowledge and understanding to make that choice.

All the best

Andreas