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What is LOHAS?

Posted on 28th Mar 2011 @ 5:44 PM

LOHAS is an acronym for Lifestyles of Health and Sustainability. LOHAS is used to describe the personal values of consumers who make up approximately 30 percent of the U.S. population-63 million adults-and accounts for over $230 billion in sales annually. The products they buy are based on their personal, social, or environmental values.

The LOHAS marketplace is described in the LOHAS Journal published by Natural Business Communications as "a marketplace for goods and services that appeal to consumers who value health, the environment, social justice, personal development, and sustainable living."

Environmental concerns, human health, and human rights do not completely describe the LOHAS consumer. The definition continues, "The holistic world view of the LOHAS consumer is a belief in the interconnectedness of global economies, cultures, environments, and political systems, as well as the interconnectedness of mind, body, and spirit within individuals in order to achieve full human potential. Personal development is of utmost concern to LOHAS consumers. Spirituality is no longer relegated to the New Age periphery but has immigrated to the center."

They are interested in one or more of the following areas:

Sustainable Economy, Healthy Lifestyles, Alternative Health, Personal Growth, Ecological Lifestyles

  • 60% female
  • Highly educated
  • About average income
  • Highly influenced by brand image
  • Least price sensitive
  • Very influential over the buying decisions of family and friends

LOHAS consumers exercise their values when choosing products and services: ethical business, environmental sustainability, human rights, fair trade, personal development and spirituality are the standards that speak to them.

LOHAS Characteristics

Research repeatedly confirms that the LOHAS trend is no mere shift in demographics but rather a wave of cultural transformation altering the very roots of American business, politics and society.

To the LOHAS consumer, the brand and the company are inseparable. For them, the decision to buy has three critical points:

  • Pre-purchase (is this a company and brand whose mission and values I support?)
  • Point of purchase (does this product or service meet my needs for the right price?)
  • Post-purchase (is this packaging recycled or recyclable? Are the profits from my purchase going to be used ethically and responsibly?)

Consumer Characteristics:

What are the characteristics of a LOHAS consumer?

The characteristics of a LOHAS consumer are categorized by five factors:

  • Personal Growth
    • Mind Body Spirit products
    • New Age
    • Metaphysical
  • Sustainable Economy
    • Alternative Energy
      • Renewable Energy Credits
      • Green Pricing
    • Alternative Transportation
      • Hybrid Vehicles
      • Biodiesel Fuel
      • Car Sharing Programs
  • Healthy & Natural Lifestyles
    • Indoor & outdoor furnishings
    • Organic cleaning supplies
    • Compact flourescent lights
    • Social Change Philanthropy
    • Apparel
  • Alternative Health
    • Natural, organic products
    • Nutritional products 
    • Integrative Health Care
    • Dietary supplements 
  • Ecological Lifestyles
    • Green Building 
      • Home certification
      • Energy Star Appliances
      • Sustainable Flooring
      • Renewable Energy Systems
      • Wood Alternatives
    • Eco Tourism  
      • Eco-tourism Travel
      • Eco-adventure Travel

Future Trends

Over the next 3-10 years, another 38 percent of U.S. adults are expected to move into the LOHAS category. This means the majority of your consumers could be making purchasing decisions on a fundamentally different set of criteria – not a product’s features and benefits alone, but also its impact on personal and planetary well-being. They are also willing to pay up to 20 percent more to buy those products and services. For companies already tapping into this trend, this means growth occurs not only in the boom times but also in a soft economy.

SOURCE: http://www.marketing-insider.com/index.php?option=com_content&view=article&id=41:who-are-lohas-consumers&catid=4:lohas&Itemid=48 , retrieved May 18, 2010.