The Co-operative Bank has insisted the economic downturn will not halt the growth in ethical consumerism, as it published its ninth annual report into green spending.
Despite the beginning of the downturn at the end of last year, the overall ethical market in the UK was worth £35.5 billion in 2007, up 15 per cent from £31bn in the previous 12 months, according to the report.
It also suggests green legislation and choice editing are key factors in the continuing drive for sales in a number of product areas.
Dick Parkhouse, managing director of retail at The Co-operative Bank, said: “Government intervention, which promotes energy-efficient products such as boilers, white goods and more recently lightbulbs, is underpinning these markets ensuring that they continue to grow.
“For some time now we have argued that only through legislation will we secure the necessary changes to deliver mass market, low-carbon lifestyles.
“Of course, the state of the economy will impact on consumer spending but this report shows that bold government action can stimulate markets, save consumers’ money and protect the environment,” he said.
The report shows that last year, on average, every household in the UK spent £707 in line with their ethical values up from £630 in 2006. However, overall ethical spend at £35.5bn is still a small proportion of the total annual consumer spend of more than £600bn.
Spending on ethical food and drink, which includes organic products, Fairtrade goods and free-range eggs, was up 14 per cent from £5.1bn to £5.8 bn.
Eco-travel and transport costs including environmentally friendly and public transport remained at £1.6bn.
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