No one really knows how much the green market has penetrated traditional markets but I have come across some interesting information from Morgan Stanley. They have focused on alternative energies, specifically the impact it will have in terms of penetrating the energy market as a whole.
Green Market Penetration Forecast
- World-wide sales from alternative energy sources could reach one trillion dollars by 2030.
- The world’s population explosion, climate change, and much higher costs of traditional fuels, are are significant factors in the growth of alternative energy sources.
- In the year 2020, revenue from alternative energies could top 500 billion dollars.
- The market penetration of biofuels could grow to over 21% by the year 2030.
If the forecasts are accurate green market penetration in the energy industry will be very impressive.
The two major industries where green market penetration has occurred on a mass scale has been the auto and energy sectors. Both industries are followed by just about everyone and certainly every investment bank. It is more difficult to pin numbers to other industries in terms of green market penetration. To get a reasonable estimation all you have to do is use your eyes and ears.
As an example, to get a semi-accurate prediction on the current and future penetration of the organic food industry all you have to do is go to your local supermarket. The organic food sections seem to be growing all the time. First it was vegetables and fruits, now entire aisles are dedicated to organics. Also, observe the vast array of ethically grown coffees.
At the moment the only tangible way to measure much of the green market penetration is through observation. Green companies are simply becoming more recognizable, to the point where they come to the consumer instead of the other way around. Once having to search out these products, they are more readily available to the average person. Eco-friendly products are growing rapidly and are more common than ever.
Here are five examples of websites that came up when I Googled the keyword term “eco friendly products”.
There were over half a million results for that specific term. By just walking my neighborhood I am constantly in awe of the amount of organic and environment friendly products available. From fertilizers to lightbulbs, the growth has been phenomenal.
To sum up this post, I want to stress the point that it doesn’t matter what industry we focus on, green market penetration is real and it is happening at an alarming rate.