The need to reduce energy costs and the consumption of electricity while using natural resources more efficiently are some of the main forces behind the significant growth in green goods spending, a new report has forecasted.
According to Verdantix’s study, UK spending from Britain’s biggest firms on the likes of energy, environment, or green initiatives from 2010 and 2015 is to grow by 12 per cent this year – which leaves the forecast for growth of UK gross domestic product at only 0.6 per cent trailing in its wake.
The study predicts growth across the green goods market and it will apparently soar from £4.3 mn this year to £6.8 bn by 2015 – representing a 16 per cent per year rise. Verdantix looked at green business spending from 421 firms across the UK that have revenues exceeding £750 million and it was found that the biggest spending will go on strategic energy management. From 2010 to 2015, spending will double from £1 bn to £1.98 bn.
Verdantix’s global head of research, Rodolphe d’Arjuzon, commented that strategic energy management is to become to the hottest market while firms look to cut their energy expense anywhere between five and 20 per cent over the next five years. The Verdantix report predicts that areas of the UK green economy to experience the fastest growth will be smart meters, at 23 per cent, and electric vehicles at 22 per cent.
In 2012, both retail and consumer brands are to account for the most spending on green initiatives at £1.5 billion and represents 34 per cent of the total spend.