Trending of the Marketplace
Green cleaning is a major trend in the cleaning industry and is showing no signs of slowing down. While originally relegated primarily to cleaning-product formulations, the concept of green cleaning now pervades all major product categories in our industry as well as the services arena. To better appreciate green cleaning as a marketplace phenomenon, we need to take a step back and look at the big picture.
The Big Picture
Environmental preferability is a broad trend that cuts across all industry sectors. Take a look at these examples:
Auto Industry. Witness the success of the hybrid car as auto companies all over the globe are coming out with fuel-efficient models. We are also seeing in-demand electric cars arriving on the market, such as the Nissan LEAF, which will be available in December 2010.
Computers. Dell has a hardware-reclamation program to ensure toxic materials are kept out of the waste stream.
Energy. Companies are exploring alternative energy sources. For example, GE is investing billions in “eco-imagination” to distinguish itself as a leading innovator in everything from wind power to high-efficiency jet engines.
Grocery industry. Over the past few years, there has been explosive growth in organic foods.
Retail. Wal-Mart has introduced its chemicals of concern policy and has also launched its initiative to reduce packaging. Home Depot has introduced its Eco Options brand, which includes cleaning products.
And the list goes on…
Companies across all sectors are embracing environmental strategies to innovate, create value, and build competitive advantage. When a trend is this pervasive, it is an indicator of fundamental change in the marketplace.
Is Green a Sustainable Trend?
Perhaps the more important question is whether green is a sustainable trend. There is strong evidence that the marketplace will continue to demand more green products and services over time.
1. Factors that transcend all industry sectors:
Public awareness. In general, there is a heightened awareness and concern by the public over our impact on the environment.
Knowledge base. This general environmental concern is in turn fueled by our growing knowledge base, such as the United Nations’ recent report on global warming.
Green chemistry. California and Michigan have implemented green chemistry policies, and there has been growth in university programs that promote this approach.
Financial community. Capital markets, banks, and investors are demanding that companies pursue environmental strategies or are providing financial inducements for companies to go green.
2. Factors specific to the cleaning industry:
Regulatory climate. The Supreme Court decision giving the U.S. Environmental Protection Agency jurisdiction over greenhouse gases; VOC regulations; the U.S. Department of Homeland Security’s Chemical Security regulations; and Europe’s REACH regulations; all will act to drive the market toward more environmentally benign products.
NGOs. Nonprofit organizations such as Hospitals for a Healthy Environment, the Healthy Schools Campaign, and others are strong advocates for green cleaning and are influential within their communities.
Commercial buildings. The U.S. Green Building Council’s Leadership in Energy and Environmental Design for Existing Buildings continues to be adopted on a broadening basis, and green cleaning is a key component of this program.
State, local, and federal government. Government green cleaning procurement policies on the state, local, and federal levels continues to proliferate and drive the market for green cleaning.
Market data. Market data confirms that green cleaning continues to flourish. TerraChoice’s recent survey indicates that 28 percent of the organizations surveyed report that their contracts for janitorial supplies require green cleaning products. A recent survey by GreenBiz indicates that more than 40 percent of household consumers prefer environmentally preferable cleaning products.
Even in today’s sluggish economy, demand for green cleaning products continues to proliferate. A recent survey commissioned by SCA Tissue indicates that 62 percent of those surveyed would dig deeper into their wallets for green cleaning products.
