Lifestyles of Health and Sustainability in Australia

Research and Markets has announced the addition of "Living LOHAS: Lifestyles of Health and Sustainability in Australia" to their offering.

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 here 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.

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 learning’s 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

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.