Ethical spending doubles in Britain  

Household expenditure on ethical goods and services has almost doubled in the past five years, a report shows.

The average British household spent 664 pounds ($NZ1,778) in line with their ethical values last year, against just 366 pounds ($NZ980) in 2002 - a rise of 81%, according to the Co-operative Bank.

Its eighth annual ethical consumerism report shows that ethical spending is now worth 32.3 billion pounds ($NZ86.5 billion) per year, up 9% from 29.7 billion pounds ($NZ79.5 billion) a year ago.

But it remains a small proportion of total annual consumer spending of more than 600 billion pounds ($NZ1,606 billion).

Households spent an average of 213 pounds ($NZ570) on "green" home products, such as energy-efficient light bulbs and A-rated kitchen appliances, during 2006, and 190 pounds ($NZ508) on ethical food and drink, such as "Fairtrade" tea, coffee and bananas, and organic brands.

Simon Williams, a director of the Co-operative Bank, said the market share for ethical food and drink appeared to have broken through the "green glass ceiling" of 5% of the entire market.

"Factoring in the effect of consumer boycotts, this market share could be as high as 7%," he said.

"Potentially, we could see market share hit 10% in the next year or two."
 
Only 6 pounds ($NZ16) per household was spent on renewable energy, such as micro-generation.

Overall, ethical clothing sales rose by 79% over the year, Fairtrade sales by 46%, energy-efficient light bulbs by 44%, ethical investments by 18% and ethical banking by 11%.

But some areas saw a marked decline. Charity shops sales were down 13%, having been squeezed by the budget retailers and internet auction sites offering an alternative outlet for second-hand goods.