clean energy

How the green industry is shaping up in 2019

Consumers today are increasingly becoming sensitive towards the environment, embracing eco-friendly products with lower carbon footprints. A global report backs this. 66% of consumers are willing to pay more for sustainable products. Within global millennials, this rises to 73%.


Going green has transformed from a preference into a viable business strategy. The industry is paving way for cost savings, supportive government policies, and higher profitability by exploring new business opportunities.

Green Industry Trends

Consumers today are increasingly becoming sensitive towards the environment, embracing eco-friendly products with lower carbon footprints. A global report backs this. 66% of consumers are willing to pay more for sustainable products. Within global millennials, this rises to 73%.

The global organic food sales stand as the backbone of the industry by crossing a monumental milestone of $100 Billion in 2018, an increase of 8% from 2017. Apart from consumer interest, prominent factors that are driving sustainable business practices include a higher return on assets for companies that follow them. Hence, sustainability has taken a rather strategic stance.

Cost-cuttings in the space is also multi-faceted. For instance, Apple opened a 175-acre campus in 2017 that features a suite of solar panels, operating at a production level of 4 million watts. Other major cost-cutting trends in the industry include:

  • Using light dimmers that work in tandem with natural light

  • Motion sensor lighting in conference rooms, bathrooms, storage, warehouses, etc.

  • Using reusable packaging instead of expendable packaging.

  • Installing smart water management systems with a smaller water footprint, such as low-flow technology.

  • Replacing a vehicle-driven delivery system with bicycles.


According to the Green Industry Outlook of 2019, 32% of the respondents in the US consider fuel and energy to be the largest expense in their business.

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When it comes to the prevailing industry issues, about two-thirds of the respondents report finding qualified workers to be the largest issue. Additionally, 31% consider water-related regulations to have the most negative impact on the business, compared to 26% for fuel.

 

Interestingly, 38% of the respondents considered competition to have the most detrimental effect on growth. Higher competition is a valid indicator of a maturing market.

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Other major emerging global trends in the green space include:

  • Renewable Energy: Innovative sourcing of energy that goes beyond traditional models of wind, solar, and geothermal. Examples include solar paneling or turning food waste and sewage into practical energy forms.

  • Zero Waste: Value chains, business models, and retail outlets are being redesigned to reduce food wastage to the point of zero footprints.

  • Energy Efficient Housewares: Proliferation of eco-friendly products such as tankless water heaters, solar paneling, and insulated windows.

  • Green Operations: Norms for employees to turn off electronics or leverage telecommuting.

  • Sustainable Advertising: Eco-friendly advertisement boards that purify the air or host an urban garden.

 

Such green industry practices are at a constant rise as they are sought after by consumers, shareholders, and governments alike. They help organizations to realize that their resources are finite and require constant optimization.