Source: Datamonitor's Product Launch Analytics

The global economic crisis has not slowed down the growth of so-called "green marketing."  According to the lead article in this week's print version of Advertising Age, "package-goods products that claim to be sustainable, environmentally friendly or 'eco-friendly'" are hitting the market at a record pace.  There were twice as many launches of green-marketed-products in 2008 as in 2007.  And there have already been 458 launches of these products so far in 2009--well beyond the total for 2007, and approaching the total for all of 2008.  As Jack Neff, who wrote the article for AdAge, points out, " green marketing is turning out to be surprisingly recession-proof."

Consumers are still buying sustainable lines despite their higher cost. Nielsen Co. data show sales growth of organic food at 5.6% year over year in December from a year ago, though that's down from the double-digit pace of years past, and its SPINS tracking service showed sales at natural-food stores up 10.9% to $4.2 billion last year. Though growth slowed in the fourth quarter, it was still more than 7% in December, far healthier than the rates at even top-performing grocery retailers such as Walmart or Costco.  "It looks like this green trend is going to survive the recession," said Tom Vierhile, general manager at Datamonitor's Product Launch Analytics.

While the data shows that consumers have been willing to spend a little more for green products, price and performance remain key factors in purchasing decisions.  Neff offers four tips for green marketers, and the fourth tip is to "address skepticism about price and quality more than the actual green claims."

BASES (Nielsen's concept testing service) found more than 80% of consumers in all categories—including 89% of those most inclined to buy green but also 80% of those unconcerned about green claims—found green claims completely or somewhat believable. Only 9% to 16% of consumers said they believe green products aren't as green as claimed—fewer than half the proportion who said they completely believe such claims. Yet a vast majority of consumers said they believe green products cost more and don't perform as well as others.

Read the full article here.