Living LOHAS Lifestyles of Health and Sustainability in Australia
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1 Living LOHAS Lifestyles of Health and Sustainability in Australia OVERVIEW Consumer Trends Report Published: August 2007 In this Report is Thorough background on LOHAS from both a consumer and organisational perspective Extensive data about Australian consumers concerns, values and attitudes to health and sustainability, supported by detailed analysis and implications Market sizing and growth projections for healthy and sustainable products in six key consumer lifestyle categories Exploration of current purchasing behaviours, barriers to participation and future intentions across a variety of product categories Analysis of emerging opportunities supported by best practice examples from Australia and the international LOHAS marketplace Use this report to Gain a detailed understanding of the growing consumer interest in products and services that take into account health, sustainability, community and planetary outcomes Implications, application and implementation options
2 Overview High profile issues such as drought and climate change have raised the awareness of Australians regarding environmental sustainability While government and business debate their responses, what do consumers think about all this? Living LOHAS answers this question and provides a compelling set of data that shows there are millions of Australian adults who are actively striving to live healthier, more sustainable lives These conscious shoppers make tradeoffs when choosing products and services, considering not just their own personal benefit but the impact on the community and planet They are not a fringe or marginalised group, but are drawn from all parts of society They are LOHAS consumers and they buy everything a normal consumer does they represent a current $12 billion market and their numbers are poised to grow Living LOHAS provides business, government and other organisations with detailed data and analysis to understand the concerns, motivations, opportunities and issues presented by these progressive and committed individuals LOHAS the biggest market you have never heard of LOHAS stands for Lifestyles of Health and Sustainability, a term used to describe a type of consumer and also the marketplace for the goods and services they seek LOHAS consumers make choices that reflect their desire for healthier and more sustainable lives They are environmentally aware, socially attuned and have a view of the world that takes into account personal, community and planetary outcomes The LOHAS construct has been adopted and embraced around the world over the past decade In Western countries such as the USA, Europe and New Zealand, LOHAS is an industry term while in Japan and East Asia, LOHAS is a widely recognised consumer term The New York Times called LOHAS, the biggest market you have never heard of International research estimates the LOHAS marketplace has a global value in excess of $500 billion and finds that there are hundreds of millions of LOHAS consumers across the world
3 Synopsis Living LOHAS is the first detailed analysis of the LOHAS consumer market in Australia The report combines independent primary quantitative and qualitative research in Australia as well as drawing on best practice learnings from the USA, Asia and Europe Living LOHAS provides: Thorough background on LOHAS from both a consumer and organisational perspective Understanding of the LOHAS consumer segmentation framework and its application in Australia Detailed descriptions of the four LOHAS consumer segments including key differentiators and specific characteristics Market sizing and growth projections in the six integrated LOHAS lifestyle categories Extensive data about Australian consumers concerns, values and attitudes to health and sustainability, supported by detailed analysis and implications for LOHAS consumers Current purchasing and participation levels in the LOHAS marketplace by each LOHAS consumer segment Immediate barriers to involvement and penetration by each LOHAS consumer segment Mapping of information sources and specific LOHAS media consumption Future interest and involvement by LOHAS consumer segment Analysis of emerging opportunities supported by best practice examples from Australia and the international LOHAS marketplace Discussion on implications, application and implementation considerations in addressing LOHAS consumers Methodology Living LOHAS leveraged a composite approach to data collection comprising four distinct components; Quantitative study: national quantitative survey to inventory the values, attitudes, and actions of adult Australians, sample size of 1,233 The data set was normalised to reflect Australian Bureau of Statistics weightings Qualitative dialogue: hundreds of face to face discussions with Australian consumers in individual and group settings Market sizing: derived from a combination of sources including industry associations and trade journals, market data and published reports and discussions with industry, government and NGO professionals Global scanning and collaboration: discussion and information exchange within LOHAS international networks anchored in the USA, Japan and New Zealand
4 Key Insights Nearly 4 million adult Australians (26% of adult population) are LOHAS aligned Individuals with a LOHAS outlook are drawn from all parts of society; their values and world view is not strongly tied to income, geography or gender LOHAS aligned consumers are seeking to integrate healthier more sustainable options into all aspects of their lives by making consumption decisions in six key LOHAS market segments Some of the products and services include: 1 Food & Nutrition eg organic and natural food, vitamin supplements 2 Mind & Body eg yoga, mediation, personal development 3 Home Life eg natural cleaning products, efficient appliances, recycled paper 4 Buildings & Energy eg water tanks, solar hot water, green energy 5 Transport & Leisure eg low impact commuting, eco tourism 6 Work & Money eg socially responsible investing, green loans Australian consumers currently spend $12 billion dollars on goods and services in the LOHAS market segments, with an overall growth rate of 20% expected to continue The market is expected to reach $21 billion by 2010 While 8% of the population are LOHAS Leaders who are highly committed and active participants in fully integrated healthier, more sustainable lives, the LOHAS Learners are the largest of the four segments identified at 46% and stand as a largely untapped opportunity Learners would like to do the right thing but are not sure where to start Solving for their key barriers which include price and availability are paramount to unlocking this market Eighty percent of Australians find environmental issues complex The provision of simple information will assist decision making however careful consideration of the depth of information provided and the balance between personal and broader outcomes varies significantly by LOHAS consumer segment LOHAS consumers weigh up a number of factors in their consideration of products and services Understanding their motivations is foundational to effectively communicating with them For example: LOHAS aligned consumers look behind products and services, to an organisations philosophy, practices, people and impact on the planet, in assessing whether they should buy a given product or service They probe for alignment of organisational intent Authenticity of the offer and the company is mandatory LOHAS consumers will want to know, 'where does it come from?, how was it made?, what is it packaged in? and what will happen when I dispose of it? Nearly 60% of Australians could not think of a brand or organisation with a strong reputation for operating in an environmental friendly, sustainable or ethical manner There is significant scope for companies to capture consumer awareness at present
5 Sample Pages from Living LOHAS
6 Details Publisher: Mobium Group Pty Ltd Pages: 159 Format: Hardcopy 100% recycled paper Published: End August, 2007 Audience: Business, Government, Non Government Organisations Contents 01 Executive Summary Introduction Ten things you should know about LOHAS 02 Framework Research framework Project approach 03 What is LOHAS? Definition LOHAS Consumers LOHAS Companies Worldwide Activity 04 Market Size & Growth LOHAS lifestyle elements Current market size Forecast market growth 05 LOHAS Consumer Segmentation Introduction Trigger Points Methodology Segmentation Model Segment Snapshot Future Shifts 06 Living LOHAS in Australia LOHAS Leaders LOHAS Leaning LOHAS Learners LOHAS Laggards 07 Detailed Analysis Concerns Values, attitudes & behaviours organisational reputation Current participation Barriers to further participation Sources of influence, media consumption, memberships & community Future interest 08 Product Category Trends Food & Nutrition Mind & Body Home Life Travel & Leisure Buildings & Energy Work & Money 09 Summary and Implementation Considerations Key Findings Implementation
7 About Mobium Group The Mobium Group is a Melbourne based company specialising in research, strategy and innovation in the markets for sustainability and wellbeing Mobium Group s founders have worked at the nexus of consumer behaviour, innovation and business for more than ten years and have been applying the LOHAS framework in their activities since 2005 Its principals, Andrew Baker and Nick Bez, conduct extensive and ongoing qualitative and quantitative research, in Australia and across the world, into LOHAS consumers and markets About the Authors Andrew Baker BCom, BSc (Melbourne) Andrew Baker has spent ten years in corporate, analytical and consulting roles, including experience as a strategy consultant at Accenture, where he held analytical and team leadership roles in strategic reviews of large, publicly owned Australian and Asian corporations He has a deep knowledge of the business implications of sustainability Nick Bez BSc (Hons) (Boston), MBA (Melbourne), QPMR Nick Bez is a market research expert, with more than fifteen years experience studying consumers in the USA and Australia He s worked with a number of leading consumer companies, including Australia s largest retailing group, Coles Myer Nick has won national awards for his work on brand strategy and is professionally accredited (QPMR status) with the Australian Market and Social Research Society
8 Mobium Group Pty Ltd ABN: Suite 6, 24 Eastern Road Phone: South Melbourne, VICTORIA Fax: Australia enquiries@mobiumcomau wwwmobiumcomau Order Living LOHAS Fax back to or scan and to enquiries@mobiumcomau Please send me Living LOHAS 2007 and invoice me for $A 6,995 +GST Please complete your details Title: First Name: Last Name: Company: ABN: Address: Suburb: Postcode: Country: Order Process 1 Complete all details on the order form (very important to provide correct address) 2 Read Terms and Conditions and agree to these by ticking the acceptance box 3 Sign the order 4 Fax the form to: or scan the form and as an attachment to enquiries@mobiumcomau 5 Mobium Group will confirm receipt of your order request by and issue an invoice based on the details provided 6 Once payment has been received, the physical report will be dispatched Telephone: Fax: Other Options Living LOHAS Mobium Group can provide a variety of valueadded options in conjunction with the purchase of the report Please sign below to confirm your order request Please tick the box to indicate you have read and accept the Terms & Conditions These include: > Custom presentation of Living LOHAS highlights and application > Activation workshops > Consulting and customised research / analysis enquiries@mobiumcomau for more information Terms and Conditions Single User License - Use of Reports Any advice given or report issued is provided solely for your use and benefit and only in connection with the purpose for which it is provided This applies whether or not a report has been prepared specifically for you or is a research report that may be made available to other clients or associates of Mobium Group (Mobium) Ownership of Intellectual Property All right, title and interest in any intellectual property (including any moral rights) in reports and materials developed by Mobium prior to or in connection with providing the report shall vest in Mobium Non-disclosure of Information contained in Reports Unless required by law, you agree not to provide any reports we may provide to any third party or refer to us without our prior written consent We assume no responsibility to any third party to which any advice or report is disclosed or otherwise made available No copy, extract or quote from any reports we provide you may be made available to any other party without our prior written consent You may provide a copy, extract or quote from any report that we provide to you: to employees for internal use; or as required by law
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