Green product price premiums turn off cash-strapped consumers
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Almost half of UK consumers are unwilling to pay the price premium associated with many green and ethical products, a situation that is likely to worsen as the credit crunch continues to affect consumer spending.
According to a major survey of 4,000 UK consumers from consultancy PricewaterhouseCoopers, demand for green and ethical products has grown significantly, with the proportion of shoppers buying Fairtrade products having risen from 20 per cent three years ago to 50 per cent now, and organic food purchasing having increased from 22 per cent to 43 per cent over the same period.
However, this £300bn sector still accounts for just four per cent of the UK retail market and the survey found that the high prices associated with fair-trade and organic products remained the main inhibitor to further growth. Read more
Source: Business Green
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