It's a well publicised fact that the environment is suffering from the effects of damaging human behaviour. The planet's energy resources are depleting at a worrying rate. There is evidence of climate change and this, and the environment as a whole, is a rapidly growing concern that affects every person on this planet, and as we reported in our February issue, this is the number one issue concerning the kbb industry. Spurred on by the government and many other politicians, most businesses, individuals and families are implementing their own strategies to prevent further damage.

So are consumers as environmentally aware as they should be? We know that levels of recycled household waste are at an all time high but has such eagerness to follow this fashionable trend become a factor when consumers consider which appliance to choose? Joan Fraser, national sales support manager, Smeg UK, certainly thinks so. "Making appliances that are eco friendly is not an option, it's a necessity," comments Joan. "These days consumers expect an appliance to have at least an A energy rating."

According to a recent survey carried out by Electrolux, consumers are far more focused on environmental issues than we give them credit for. The study questioned over 2400 people in Europe and North America about their attitudes and behaviour towards the environment and there were some very positive results. According to the report, just 4% of the people questioned described themselves as having no concern about the impact of human activity on the environment. With particular reference to this industry, an astounding number of people, 70%, said that they want their appliances to be environmentally friendly with 76% actually comparing energy efficiency ratings of competing brands. Of these people, 93% said that this information had quite a lot of influence over their decision to purchase an appliance.

Jonathan Casley, sales and marketing director, GDHA seems to agree with this. "It is difficult to deny that our environment is changing and we are seeing this have a real impact on how and why consumers select their appliances."

"For some customers price is always going to be a leading factor, but for a growing number energy efficiency is one of the main deal breakers."

In stark contrast the report also indicated that a large number of people aren't even aware that many appliances on the market are in fact extremely environmentally friendly. For instance, a popular mistruth is that dishwashers are an expensive, water guzzling luxury. When in fact, the energy efficient models actually use less water than washing an equivalent load by hand.

The more clued up consumer will also see that opting for planet saving products can have a positive impact on their bank balance. Reducing their energy and water consumption will undoubtedly reduce their household bills. "The environment is becoming an issue that consumers are concerned about," says Mark Bristow, md, Liebherr UK. "The more they realise that there is a direct link between energy efficiency and saving money on household bills."

One of the biggest breakthroughs in product development, with regard to energy sustainability, is the invention of the induction hob. Induction hobs are 90% energy efficient, because the hob uses the pan as a conductor and there is reduced heat loss compared to gas hobs that are just 55% energy efficient. This is also great news for the consumer, because an induction hob can save around £30 on energy bills. For those consumers who don't seek out energy saving appliances, pointing out their money saving possibilities is the surest way to secure a positive sale. Not only do they get the feel good factor about saving the environment but they can also save money at the same time.

As well as cutting back on energy usage, there are also other important ways manufacturers are helping the environment. Many have invested serious amounts of money in new procedures that reduce the affects they have, such as choosing the right raw materials and installing energy efficient machinery. Many products on the market now come with automatic cleaning settings, to reduce the amount of harmful chemicals used to clean them, and this is all as a result of manufacturers spending time and money on product development.

Although many manufacturers in the kitchen industry have made tremendous advances, meeting energy saving guidelines is proving easier in some product areas than others and we are bound to see further developments in technology and product innovation in the near and not so distant future.

Inside Analysis

Steve Holton, product and brand director for Electrolux Major Appliances

The market for eco appliances in the UK depends to a greater or lesser degree on the definition of an 'eco-appliance' - and more importantly what the consumer perceives as an 'eco appliance'. While responsible manufacturers go far deeper than simply striving for 'A' ratings - for the majority of consumers the easy way to choose an eco-appliance is to pick one with a top energy rating. You only need to look at the figures to see the staggering growth in sales of A rated (or better) appliances over the last few years - a growth driven by both consumer pull and manufacturer push.

Take cooling as an example of the staggering growth in energy efficient appliances. Over 90% of fridge freezers are now A rated - with A+ models seeing the biggest growth - up 17% year on year. For 'side by sides' the number of A rated models sold last year rises 97%. This growth in the A, A+ or indeed A++ models can be seen right across the board in cooling and freezing.

When you look at laundry, the eco-story is equally strong. During 2007 2.4 million front loading washing machines were sold. Of these, a massive 97.8% were A rated for Energy - 20% of these being A+ rated - and growing at 20% per annum. Even the 'eco-black sheep' - tumble dryers are improving. The first and (to date) only A rated condenser dryer, made possible thanks to heat pump technology, was introduced by AEG-Electrolux in 2005. There has been growing demand for this product, even though it sits at a premium sector of the market.

There has also been a dramatic growth in B rated condenser models since last year - up by a staggering 208% (to a share of 7%). Vented dryers are a slightly different story, as the largest volume sits in the C rated category, at 74%. There is unlikely to be much change in the ratings for vented tumble dryers because the technology is old with limited possibilities for innovation.

Over 70% of freestanding dishwashers are now AAA rated - up 7.4% year on year, while 56% of built-in are A rated. Cookers and ovens too are showing the biggest growth in A or B rated models indicating that consumers are purchasing more energy efficient ones.

The driving force behind this preference for energy efficient models is not purely altruistic - constantly increasing utility bills are also driving sales of efficient appliances.
The demand for energy efficient models produced in a sustainable and environmentally
responsible way will continue to grow in importance and is something every manufacturer and retailer will have to embrace in order to survive.

Anthony Williams, GfK, analyses the eco appliances market

The number of consumers purchasing A rated energy efficient appliances in recent years has risen sharply (+12% on average). 

 While consumer awareness of "the need to be green" has grown, there are more practical motives behind their purchasing decisions. On the one hand, spiralling utility bills have put pressure on disposable incomes and if consumers can see a cost-benefit to appliances they will certainly take it; on the other, consumers are increasingly style-conscious and premium appliances incorporating stainless steel fascias and a wealth of features usually feature high energy ratings as standard.

Washing machines currently hold the largest share of A rated products, with 77% of models being at least AAB rated. Tumble dryers have the least with 95% of models between C and D ratings. Refrigeration has seen the most developments in energey efficiency as these products run continuously. A rated refrigerators have grown by 16% year on year and make up more than 80% of sales.

Anthony.williams@gfk.com