Despite Brits paying average price premium of 46% for green retail products, market looks set to grow to €114bn in five years.
A new report commissioned by online shopping and price comparison site Kelkoo revealed that European green retail sales are set to double in the next five years from €56bn in 2009 to €114bn by 2015. This will in turn take its European market share from 2.5% to 5%.

European consumers currently pay a price premium of around 46% for green retail products. However, this has dropped from 54% in 2006 and will hopefully continue to fall to 40.6% by 2012.

Germany, France and the UK have consistently accounted for the highest overall green sales revenues since 2000, spending €14.4bn, €10.6bn and €9.3bn respectively.

Online sales of green products are also set to gather pace in the next few years. European e-commerce sales topped €3.4bn in 2009 and are forecast to rise 212% to €10.6bn by 2015 - equivalent to a 9.3% share of all green retail sales, compared with the current 6.2%. According to the report, consumers buy green products online for convenience and availability, as well as the fact that they are 11% cheaper on average.

Kelkoo UK managing director Bruce Fair commented: "Green only accounts for 2.5% of all retail spending in Europe today and is set to represent 5% of the retail market by 2015. We can expect availability, green price premiums, and consumer demand to change over the next few years, but probably the single most important factor preventing a greater take-up of green merchandise in stores and the internet is price. Sales of green products will not become commonplace until suppliers give consumers better price incentives in-store and online to follow their consciences."

"Changing consumer buying patterns caused by the recession may have meant that sales of the more expensive green options, such as organic foodstuffs, have suffered but interest in energy-saving appliances and lighting has grown, as these products tend to save consumers money in the long-term."