MANCHESTER, England, November 27 /PRNewswire/ -- The value of UK ethical consumerism last year exceeded the salesof 'over-the-counter' beer and cigarettes, according to the Co-operativeBank's (LSE: CPBB) annual Ethical Consumerism Report published today (27 November).
The Report, which acts as a barometer of ethical spending in the UK,shows that in 2005 UK ethical consumerism was worth GBP29.3 billion, for thefirst time overtaking the retail market for tobacco and alcohol which stoodat GBP28.0 billion.[i]
However, the Co-operative Bank was quick to guard against complacency andcautioned against interpreting this growth as a sign that the markets werecapable of delivering sustainable solutions without intervention.
The Report, which is published in conjunction with The Future Foundation,shows that ethical consumerism in 2005 was up 11 per cent on the previousyear. Over the same period, UK household expenditure increased by only 1.4per cent.[ii]
Spending on ethical food which includes organic products, Fairtrade goodsand free-range eggs was up 18 per cent from GBP4.6 billion to GBP5.4 billion.Green home expenditure, which incorporates energy-efficient electricalappliances, green mortgage repayments, small renewables (such as micro-windturbines) and green energy was up from GBP3.8 billion to GBP4.1 billion.
Eco-travel and transport costs, which includes environmentally friendlytransport, responsible tour operators, public transport and sales of greencars, was up from GBP1.7 billion to GBP1.8 billion.
Spending on personal products, such as humane cosmetics and eco-fashion,was up 5 per cent to GBP1.3 billion. Monies in ethical finance, whichincludes ethical banking and investments, stood at GBP11.6 billion, up fromGBP10.6 billion last year.
Executive Director of Business Management Craig Shannon said: "The factthat the value of ethical consumerism is now higher than the retail figuresfor cigarettes and beers is a milestone. However, total ethical spending isspread over a wide range of products and services, and in very few marketshas it become the market norm. Overall, spend on ethical foods still onlyaccounts for 5% of the typical shopping basket.[iii]
"Where the ethical or eco-choice has become the market leader, forexample in sales of A-rated energy fridges (which account for some 60 percent of the market), this has been underpinned by an EU labelling scheme,inefficient products being removed from sale and the support of well targetedsubsidies.
"If, as many scientists are saying, we have ten years to make a dent inclimate change, it is this type of radical overhaul of the choices madeavailable to people that is going to deliver the rapid market changesrequired.
"The efforts of far-sighted, highly motivated consumers need to beleveraged and supported with business innovation and governmentintervention."
Notes to Editors:
[i] Office for National Statistics (ONS), Consumer Trends data Quarter 22006, www.statistics.gov.uk/downloads/theme_economy/CT2006Q2.pdf, table 0.C.
[ii] Office for National Statistics (ONS), Consumer Trends data Quarter 22006, www.statistics.gov.uk/downloads/theme_economy/CT2006Q2.pdf, table 0.KS.
[iii] Office for National Statistics (ONS), Consumer Trends data Quarter2 2006, www.statistics.gov.uk/downloads/theme_economy/CT2006Q2.pdf, table0.C.
Co-operative Bank
For further information contact: Dave Smith, Co-operative Financial Services Press Office, Tel: +44(0)161-827-5614, Fax: +44(0)161-832-2751, e-mail : dave.smith@co-op.co.uk
