What does the term “LOHAS” mean?
LOHAS stands for Lifestyles of Health and Sustainability. This market segmentation term refers to that large and growing portion of the population that aspires to a healthier and more environmentally friendly lifestyle and makes buying and investment decisions accordingly.
The term rose to prominence in the early 2000s as sociologists and marketers sought to delineate a growing consumer group that felt new levels of responsibility for their purchases’ effects on society and the environment. This group tends to be well-informed and discerning and willing to read labels and do some research to align their consumption with their sustainability interests. For example, this segment of the population expects the companies they patronize to share their values and will pay more for goods and services that show that they are minimizing their harm to the environment and society.
What does the LOHAS market include?
Based on various market studies, annual global sales to the LOHAS market segment already exceed $1 trillion and include a diverse set of product and service areas, including personal health and natural lifestyle consumer goods, clean energy and transportation solutions, cleantech products, green building solutions, and even eco-tourism. These consumers, also referred to as “aspirationals”, by some accounts now make up almost one-third of the global population and are one of the fastest-growing buyer and investor segments worldwide.
Where does LOHAS Advisors fit in?
At LOHAS Advisors we’ve recognized for many years that the segment of the population that may be described as LOHAS-minded typically mirrors that quickly expanding portion of the investor world that is expressing a growing desire to invest in more socially and environmentally impactful ventures. These investors come in all shapes and sizes (from high-net-worth individuals, to family offices, to cause-based organizations, to non-accredited investors) but they all believe in the power of their investments not only to generate financial returns but also to achieve meaningful social and environmental benefits.
For many years, we have been seeking to capture this zeitgeist and help navigate these LOHAS investors through areas that meet their expansive objectives. We have proudly adopted the market segmentation moniker and hope that others will join the quickly growing LOHAS group of social and environmental impact investors. We’d be happy to help you chart your course!