Getting Green Growing Again

If it's Springtime in the US, it's time for spring cleaning. But will homeowners go green to get clean? Sales of green household cleaning products in the US grew at a compound annual growth rate (CAGR) of 30% from 2007 and 2010, according to Packaged Facts. However, the market declined at a CAGR of 2% from 2010 to 2014.


In a new report, Packaged Facts notes that the green market is small at $600 million in 2014. It remains a niche, accounting for about 3% of the total household cleaner and laundry product market. Packaged Facts projects struggles will continue and the market will grow at a CAGR of only 1% in dollars to 2019. Volume will likely decline, with increasing prices driving any dollar growth. Higher-priced traditional green brands like Seventh Generation, Method and Mrs. Meyers will drive market growth, but there are only a few brands with enough critical mass to support a substantially larger market. Hardcore green consumers will continue to buy green cleaning products from these and other green leaders. Since these consumers represent a relatively small part of the population, the green market will likely remain a niche for some time to come unless more consumers become regular green shoppers. American consumers are increasingly “leaning green” and most want healthier, safer choices in their foods and products they use in their homes. However the failure and struggles of green products from mass marketers have shown that the majority of Americans don't want to buy green cleaners on a regular basis if they are more expensive or if effectiveness comes into question, according to Packaged Facts.


On a positive note, Purex Natural Elements laundry detergent has done well by successfully convincing mainstream consumers that a value brand can be green and effective. As Green Household Cleaning Products in the U.S., 3rd Edition notes, new private label green brands from leading retailers may succeed in further attracting mainstream consumers. Walmart's own brand, Great Value Naturals could have the biggest impact on the green cleaner market. Launched in late 2013 the all-natural line of affordable cleaning, dish, and laundry products is an extension of Walmart's hugely successful private label brand. Time will tell if Walmart, the largest retailer by a wide margin, can succeed with affordable green cleaning products when many major mass marketers could not. 


Packaged Facts' Green Household Cleaning and Laundry Products in the US, 3rd Edition, details how growth of the market for green household cleaners and laundry products was driven higher through 2010 by the entry of major mainstream mass marketers with green brands such as Clorox Green Works and a host of others. They were backed by heavy marketing support and initially achieved high levels of sales, their new products purchased by many consumers who typically don't regularly buy green products. Established green marketers such as Seventh Generation, Method and others responded to the competition and drove the market higher with new products, increased support, and expansion of distribution into more mass retail outlets.