Market enjoys an 11 per cent increase
Ethical spending, such as purchases of organic food and low-emission cars, has outstripped sales of cigarettes and alcohol, according to The Co-operative Bank's annual Ethical Consumerism Report.

The total amount spent on ethical products hit£29.3 billion last year, a growth of 11 per cent from the year before, the study revealed.

This increase compares with retail sales of£28 billion for beer and cigarettes and 'marks a milestone', according to The Co-operative Bank executive director of business management Craig Shannon.

Organic products, Fairtrade goods, free-range eggs and other ethical food products enjoyed an 18 per cent year-on-year boost from£4.6 billion to£5.4 billion.

Spending on energy efficient electrical items, such as wind turbines and other green energy goods, climbed from£3.8 billion to£4.1 billion last year, according to the study based on figures from the Office for National Statistics.

The bank revealed that ethical consumers were highly motivated, but spending needed to be supported by more business innovation and Government intervention.

Shannon said: 'Ethical spending is spread over a wide range of products and services, in very few markets has it become the norm.

'Overall spend on ethical foods still only accounts for 5 per cent of the typical shopping basket.'

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