Eco-friendly Products in Australia Market Insights by Adam brandsimo.wordpress.com http://www.flickr.com/photos/nature_lover/267647259/

What’s Eco friendly? Eco-friendly has yet to form a clear definition, it can mean any one, or a combination of: Made from Renewable sources Safe for Grey water/Gardens Not tested on Animals Recycled or Recyclable Free from Chemicals Carbon neutral Myths about eco-friendly products: It is less effective Not as concentrated More Expensive Means more hard work http://www.flickr.com/photo_zoom.gne?id=386797304&size=l

Eco-friendly has yet to form a clear definition, it can mean any one, or a combination of:

Made from Renewable sources

Safe for Grey water/Gardens

Not tested on Animals

Recycled or Recyclable

Free from Chemicals

Carbon neutral

Myths about eco-friendly products:

It is less effective

Not as concentrated

More Expensive

Means more hard work

Culture There is a clear shift in cultural acceptance of environmental and social concerns in Australia – where 5 years ago, climate change was only a issue for environmentalists, it is now top of mind for most Australians. Cultural Change: All new homes must take environmental concerns on board whilst being built Water Storage tanks are now featured in suburban homes (a few years ago this was illegal) Many households have resorted to using grey water (recycled from their laundry) to water the garden http://www.flickr.com/photo_zoom.gne?id=251978771&size=o

There is a clear shift in cultural acceptance of environmental and social concerns in Australia – where 5 years ago, climate change was only a issue for environmentalists, it is now top of mind for most Australians.

Cultural Change:

All new homes must take environmental concerns on board whilst being built

Water Storage tanks are now featured in suburban homes (a few years ago this was illegal)

Many households have resorted to using grey water (recycled from their laundry) to water the garden

Media Media sources have embraced environmental concerns as a mainstream issue and has been presented by all the major media outlets: “ Reducing use of harmful chemicals is one of the best ways you can help protect the environment and look after your wellbeing” Biome.com.au “ Sustainability is emerging as a major mainstream trend , and be certain, it is here to stay” ecoSAVVY “ Australian designers are leading the way in using sustainable and recycled materials... There are eco-aware items to suit every budget .” Sydney Morning Herald (Nov 06) “ It's not just environmentalists who recognise climate change as a major threat . Businesses are ahead of the Government in understanding the need for urgent action to cut soaring greenhouse pollution.” Fairfax (Sept 06) “ As much of Australia sinks further into drought, headlines scream of global warming and an energy crisis” Sun Herald (Feb 07) http://www.flickr.com/photos/catteaumaru/57472700/

Media sources have embraced environmental concerns as a mainstream issue and has been presented by all the major media outlets:

“ Reducing use of harmful chemicals is one of the best ways you can help protect the environment and look after your wellbeing” Biome.com.au

“ Sustainability is emerging as a major mainstream trend , and be certain, it is here to stay” ecoSAVVY

“ Australian designers are leading the way in using sustainable and recycled materials... There are eco-aware items to suit every budget .” Sydney Morning Herald (Nov 06)

“ It's not just environmentalists who recognise climate change as a major threat . Businesses are ahead of the Government in understanding the need for urgent action to cut soaring greenhouse pollution.” Fairfax (Sept 06)

“ As much of Australia sinks further into drought, headlines scream of global warming and an energy crisis” Sun Herald (Feb 07)

Current Attitude to the Environment More people are embracing sustainability in all forms. We are taking far more responsibility for our planet and environmental issues. Key Takeouts: The Australian grocery buyer is concerned about the environment They feel a responsibility to help Eco-Products are perceived to be overpriced Environmentally Friendly Products are overpriced At heart I am an environmentalist If we don’t act now we’ll never control our environmental problems Threats to the environment are exaggerated Percent who agree ROY MORGAN SINGLE SOURCE AUSTRALIA : JUL 2005 - JUN 2006 http://www.flickr.com/photos/ekarjala/55027803/

More people are embracing

sustainability in all forms.

We are taking far more

responsibility for our planet

and environmental issues.

Key Takeouts:

The Australian grocery buyer is concerned about the environment

They feel a responsibility to help

Eco-Products are perceived to be overpriced

Market Analysis High Mainstream acceptance http://www.flickr.com/photos/walkaboutwolf/63452603/ Low Mainstream acceptance The eco-friendly cleaning product market in Australia is separated into two distinct groups – one group of products are made for the niche market sold at selected eco-friendly stores, the other is group, lead by ‘Earth Choice’ is available at both independents and mainstream grocery channels.

Earth Choice Nature’s Organics, the parent company of Earth Choice would be the major direct competitor to any new entrant into the Australian Eco-Friendly Cleaner market. They have been established over a number of years, and are present in all major grocery retailers. From Nature’s Organics website: Earth Choice products offer a unique and environmentally conscious alternative to conventional household cleaning products. We believe our products substantially overcome and reduce environmental concerns recognised and established by the EPA. Our formulas and packaging are specifically designed to reduce environmental impact and waste of resources . The ‘Earth Choice’ range includes: Dishwashing Liquid Laundry Liquid Eucalyptus Woolwash Floor and Surface Cleaner Multi Purpose Spray Toilet Cleaner Fabric Softner http://www.flickr.com/photos/algo/18939485/

Nature’s Organics, the parent company of Earth Choice would be the major direct competitor to any new entrant into the Australian Eco-Friendly Cleaner market. They have been established over a number of years, and are present in all major grocery retailers.

From Nature’s Organics website:

Earth Choice products offer a unique and environmentally conscious alternative to conventional household cleaning products. We believe our products substantially overcome and reduce environmental concerns recognised and established by the EPA.

Our formulas and packaging are specifically designed to reduce environmental impact and waste of resources .

The ‘Earth Choice’ range includes:

Dishwashing Liquid

Laundry Liquid

Eucalyptus Woolwash

Floor and Surface Cleaner

Multi Purpose Spray

Toilet Cleaner

Fabric Softner

Mainstream Distribution Earth Choice is the number 1 ‘Eco-friendly’ product in terms of distribution through mainstream channels, as it is present in all major supermarkets. However ‘Priceline’ is a clear opportunity that is not tapped by Earth Choice (note: Priceline specialises in body/hair products rather than general cleaning) Mainstream channels are a necessity to provide sales volume in a small market such as Australia. http://www.flickr.com/photos/eyecatcher/9388536/

Earth Choice is the number 1 ‘Eco-friendly’ product in terms of distribution through mainstream channels, as it is present in all major supermarkets.

However ‘Priceline’ is a clear opportunity that is not tapped by Earth Choice

(note: Priceline specialises in body/hair products rather than general cleaning)

Mainstream channels are a necessity to provide sales volume in a small market such as Australia.

Insight Mainstream consumers don’t really care about the environment, but they feel pressured to be more environmentally conscious – they want products that they can feel good about using. http://www.flickr.com/photos/stevewall/206426067/

Mainstream consumers don’t really

care about the environment,

but they feel pressured to be more environmentally conscious –

they want products that they can

feel good about using.

Opportunities The overriding factor in the current market that all brands, mainstream and niche, are clearly eco-friendly first, marketing second. This provides an opportunity for a strongly branded, and well marketed brand which touches both economic and environmental concerns of mainstream consumers. Designed for ‘average’ consumers, not greenies, who feel pressured to be more socially and environmentally conscious. Grey Water Suitable Products Targeted to consumers new to green products Products for hair & body, as well as domestic cleaning Competitively priced http://www.flickr.com/photos/darwishh/159680174/

The overriding factor in the current market that all brands, mainstream and niche, are clearly eco-friendly first, marketing second. This provides an opportunity for a strongly branded, and well marketed brand which touches both economic and environmental concerns of mainstream consumers.

Designed for ‘average’ consumers, not greenies, who feel pressured to be more socially and environmentally conscious.

Grey Water Suitable Products

Targeted to consumers new to green products

Products for hair & body, as well as domestic cleaning

Competitively priced