SUSTAINABILITY IN HORTICULTURE CONSUMER PREFERENCE 2012 Bioplastic Container Cropping Systems Conference “Currently, one of the most widely discussed topics in the green industry, which is promulgated by consumers exhibiting greater degrees of environmental awareness, is the issue of environmental sustainability.” - Charles Hall, 2012 Texas A&M University WHAT CHARACTERIZES SUSTAINABLE PRODUCTS? • Product is produced with low environmental impact. • Product use results in low environmental impact. GLOBAL CONSUMER ATTITUDES • Over 80% indicated concerns over all of the elements in a typical consumer goods supply chain: • packaging • waste disposal • transportation • Price, quality, availability of greatest concern to mainstream consumers, but… • 2 out of 3 say company offering products with low environmental impacts wins their loyalty. The Guardian, 2010, Sustainable Business survey of readers U.S. GREEN CONSUMER MOVEMENT • 2 in 4 Americans agree that a cleaner planet starts at home. • 2 in 3 are ready to make changes. • 84% say they base their choices in environmental issues. • 87% of Americans say that global warming is not the point – it’s all about trash and waste reduction. Linda Gilbert, CEO, Eco-Focus Worldwide MAKE IT EASY TO BE “GREEN” “The easier it is for consumers to buy sustainable products, the more successful the company will be.” – Linda Gilbert Read more: http://greeneconomypost.com/sb10consumer-attitudes-eco-moms-10535.htm#ixzz22ioAiuwU NOT ALL CONSUMERS ARE ALIKE • Attitudes, preferences, behavior • Even “green” consumer attitudes about the environment differ. • What are biodegradable pot characteristics deemed most desirable? Gladwin et al., 1995, Academy of Management Review Value of a product to the consumer is related to the utility or satisfaction associated with each attribute that makes the product what it is. Baker, 1998, International Food and Agribusiness Management Review CONJOINT ANALYSIS OF CONSUMER PREFERENCE FACTORS CONSIDERED • Price • Material • Carbon footprint (energy consumed to make or ship the product) • Waste composition (how much of the product was made from waste ingredients?) Internet survey in Texas, Michigan, Minnesota, Indiana Hall et al., 2010, HortScience OVERALL RELATIVE IMPORTANCE • Container type – 33.3% • Price – 24.3% • Lower prices preferred. • Carbon footprint – 23.4% • Carbon-neutral or carbon-saving preferred. • Waste composition – 19% • Only slight preferences for lower waste composition. Hall et al., 2010, HortScience Attributes Price - $2.49 - $2.99 - $3.49 PriceEnvironmentally conscious conscious Carbonsensitive 76% 27% 0 28% 66% 6% 9.5% 81% 9.5% No preference Some preference Greater preference Waste composition - 0% - 1-49% - 50%+ 30% 46% 24% 40% 32% 28% 9.5% 23% 67% Carbon footprint - carbon-neutral - carbon-saving - carbon-intense 53% 37% 19% 36% 74% 0 62% 38% 0 Container type Hall et al., 2010, HortScience CONSUMER PROFILES • PRICE-CONSCIOUS: • Higher education • Married • May be unfamiliar with “sustainability.” • Greater interest in locally produced conventional bedding plants • Pots will have to be price-competitive with alternative products. CONSUMER PROFILES • ENVIRONMENTALLY-CONSCIOUS • Younger • Concern about the environment • Not opposed to sorting household waste • Not concerned whether packaging is made from recycled material • Less concerned with pot-type, including plastic • Offer products with smallest carbon footprint. CONSUMER PROFILES • CARBON-SENSITIVE • Different from environmentally conscious segment but difficult to define • Prefer higher waste composition products. • Will not reward carbon-saving attribute more than carbon-neutral. CONSUMER PROFILES • Non-discriminating • ~37% of respondents • Older, living metro area • Lower education/income • Feel sorting household waste is too inconvenient. MERCHANDISING STRATEGIES • Consistent message across multiple media. • Avoid “greenwashing.” • Quality always matters. • Understand why customers buy “green” and what premium willing to pay. • Make demand “inelastic.” • Communicate how your product differs from others to best target your market. NEVADA CONSUMERS • Market for “green” products greatest among the young, and among higherincome, older gardeners. • 30- to 50-year-old market is highly pricesensitive (slower economic recovery + higher unemployment rate than rest of U.S.). • Mistrust of currently available biodegradable products (newly formed soils with limited bio-activity). BIOPLASTICS CONSUMER PREFERENCE SURVEY - 2013 • Iowa, Ohio, Nevada • Determine willingness to pay for: • • • • Different pot types Carbon footprint levels Level of biodegradability Others…? • Describe the market profile for bioplastic pot purchasers: • Age, gender, income level, types of plants purchased and willingness to purchase in bio-pots • General attitudes / behaviors related to sustainability QUESTIONS Dr. Heidi Kratsch kratschh@unce.unr.edu