Sales of products such as electric cars and solar panels have helped to drive an increase in the size of the ethical market, a new study has found.

According to the 2015 Ethical Consumer Markets Report by Ethical Consumer magazine and Triodos Bank, the value of the ethical market has grown from £35 billion to £38bn.

The value of ethical sales rose by 8%, compared with inflation edging up by just 0.5%.

But the value of ethical investments dipped by 2% as consumers moved their money away from the Co-operative Bank.

Growth under threat from UK Government’s changes

Sales of electric, hybrid and other low-emission cars jumped by 40% to £7bn.

Solar panel sales climbed by 25% to £716 million.

But Rob Harrison, Editor of Ethical Consumer magazine, warned: “Disappointing changes to government incentives for home renewable energy installations and lower impact motoring in 2015 will threaten the strong growth in sales of lower carbon choices identified in this report.”

> Download the report