What is LOHAS?

LOHAS may be the biggest market you’ve never heard of encompassing goods and services ranging from organic food, energy efficient appliances and solar panels, to alternative medicine, yoga tapes and eco-tourism. New York Times

Baby Boomers, Gen Xers, Gen Yers, health food aficionados, and LOHAS consumers. LO-what consumers???

As I discovered recently, the LOHAS sector is the biggest market I’d “never heard about”. That was until I stumbled across a marketing research organisation called Mobium Group, who put out a regular report called “Living LOHAS”. It’s a comprehensive annual research report that provides an up-to-date fact base on consumer and social trends in Australia relating to sustainability, natural health and wellness.

LOHAS is an acronym for Lifestyles of Health and Sustainability. The LOHAS marketplace encompasses goods and services that appeal to those consumers who value health, the environment, social justice, personal development, and sustainable living.

As opposed to a typical demographic group defined by age, income, or other definitive means, the LOHAS consumer cuts across those boundaries and is representative of more "higher-being" ideals. Their social consciousness, rather than their generation or socioeconomic status defines these LOHAS consumers. This poses unique challenges for those of us working in the sector wanting to market our products and services to them.

And it’s a big market too, estimated to be worth around $230 billion market worldwide, and growing. In Australia, the consumer market for natural, healthy and sustainable products and services in Australia has grown over 20% to $19 billion in 2009 and is expected to reach at least $27 billion by 20111

The LOHAS marketplace encompasses the consumers and businesses that support the LOHAS ideals: products and services that aim to improve health, safeguard ecosystems, develop human potential in a sustainable manner, reduce the use of natural resources, allow mankind and the natural world to live more harmoniously and are created or conducted in a socially just manner.

Unlike age, or even income categorisations, the LOHAS consumer becomes one by feeling strongly about something and making his or her own conscious decision to act in a certain way. It is a movement that comes from within.

Engaging Australians on sustainability requires an increasingly sophisticated effort, as canny consumers will increasingly place greater scrutiny on the claims we make with regards to our products and services, especially in light of all the rorts and recent negative publicity surrounding some of the Federal Government’s green initiatives. However, these consumers are the future of our business and also the future of progressive social, environmental and economic change in this country.

Steve French and Monica Emerich write in an article entitled, "The LOHAS Consumer Identified," (LOHAS Journal, Spring 2002), "The LOHAS marketplace is labyrinthine. It is a complex structure of consumers who defy traditional socioeconomic and demographic categorisation associated with healthy living and sustainable product industries. The marketplace is also comprised of a broad array of companies across many industries."

The insights gained through the Mobium project may help us gain a better understanding of the motivations of Australians to engage in healthier, more sustainable lifestyle choices. It’s well worth a look at the summary, available from their website.

1 Mobium Group, Living LOHAS 3 Research Project Summary, Dec 2009, p8