Market potential for certified forest (wood) products in Ontario, Canada

This study, conducted in the fall of 1997, documents: i) consumer perceptions regarding environmental marketing; ii) consumer willingness to purchase certified forest (wood) products and to pay a premium for such products; iii) variations in premium across products and prices; and, iv) levels of awareness and acceptance of certification within the forest industry. Analysis indicates that Ontario consumers are environmentally conscious. The mean response of consumers indicates that they are willing to pay a 10% premium for nearly all certified products. In some cases, premium varies with the price of certified products; low-price furniture items command a higher premium than do high-price furniture products. Approximately 90% of consumers prefer to purchase certified furniture and lumber products over non-certified, and 73% of consumers prefer to purchase recycled paper products over certified paper products. Generally, awareness and acceptance of certification among primary producers and re- manufacturers are low. Only 39% of respondents indicate a willingness to pay a 10% premium for certified products, but almost all respondents are willing to purchase certified forest products if all other aspects, such as price and quality, are equal. Separation of certified and non-certified wood and wood products may pose a problem for many companies. Key words: forest certification premium, green premium, market segmentation, niche markets