But once her family knew what to do – take shorter showers, turn off the faucet while brushing their teeth – Smith still found herself struggling to break old habits of her husband and teenage kids.

“And then it just occurred to me,” as Smith recalled, “it would have been a lot easier to learn those things when you’re very young.”

What could have remained a wistful thought instead became the premise behind one of this year’s most talked-about toys. Both BusinessWeek and Time have taken note of Idbids – the company formed by Smith and fellow mother Sarah Albarez – and their Eco-friendly Starter Kits. Made entirely out of recycled and organic materials, these kits also deliver to children what could be their first lessons in environmentally conscious behavior.

Leading such lessons are three characters – Scout the cloud, Lola the flower, and Waverly the water drop – in a picture book and “field guide” printed on recycled paper with eco-friendly inks. In plush form, they are made entirely out of organic cotton, like the kit’s backpack in which everything can be stowed. These characters, according to Smith, were designed as deliberately as they were made.

“We have made Idbids characters look very simple because kids like to draw things all the time. They may draw that cloud and do the face on it [like Scout],” she said. “The thing is, when they look up at the sky and the clouds, we hope that they will look at it a little differently – that they’ll think it’s something that they do want to take care of and learn about.”

Finding the right cotton for their plush toys – which Smith described as feeling “almost like your lovable ol’ blankee” – became the most difficult part of creating the kit. After the company became a member of the Organic Trade Association, its co-founders researched extensively online to find a manufacturer that grew and processed its cotton properly, with valid certifications.

“Because of the nature of what we’re trying to teach, we are going to strive to make our products in the most environmentally friendly way that we can,” Smith said.

And, as Idbids and its kits rose to popularity, the steps Smith’s family has made to conserve has also amounted up to one very environmentally-conscious household.

“Surprisingly enough, our habits have changed a lot,” she said, “though I still think it would have been easier if I had Waverly when the kids were two or three.”

Idbids, P.O. Box 888405, Atlanta, GA 30356. Call 1-877-443-2437 or visit www.idbids.com .

Grown sans the use of harmful chemical pesticides, organic cotton — along with the eco-fashion trend — first rose to popularity 15 years ago. And while U.S. development is hindered by a struggling domestic market, the global organic cotton industry is now worth an estimated $2.6 billion, according to the Organic Trade Association . To fuel it further, more apparel companies than ever incorporate organic cotton into their clothing, as they join together in initiatives that spread awareness to consumers.

How Its Demand Sprouted

By 1990, less than 1,000 acres of organic cotton could be found in the United States, according to the Organic Trade Association. By 1993 however, eco-fashion had become the latest trend. Consumers demanded that if apparel companies could not supply clothing made of organic cotton, then they at least learn more about it.

Few companies however could fully embrace organic cotton. By 1995, while almost 25,000 acres were planted, organic cotton was still far less readily available than conventional cotton. Furthermore, neither apparel companies nor consumers were willing to pay the additional price for its production. By 1997, organic cotton acreage dropped to 9,050 as a result.

But apparel companies would discover a compromise just a year later. Blending small amounts of organic cotton into their conventional cotton apparel. As Nike, Gap, and Levi Strauss discovered, blending small amounts of organic cotton into their conventional cotton apparel provided more flexibility for a smaller cost. With this, the U.S. organic cotton market grew to a $3.5 billion industry.

What Customers See

Brands now loyal to the cause are introducing organic cotton to the consumer in greater doses. Apparel resulting from such initiatives are likely labeled with a tag – made of post-consumer recycled paper, of course.

In February 2007, Gap released through 500 of its stores a line of mens t-shirts entirely made of organic cotton, selling for $16.50 each. Around the same time, H&M released lines of tunics, blouses and jeans, among other items for women, teens, and kids.

Under the skeptical eye of the green community, organic designer Rogan Gregory created his own collection for Target that featured organic cotton among other natural fibers. Barneys New York even previewed the collection in its New York and Beverly Hills stores before it debuted in Target locations nationwide May 18. Earlier that year, Barneys New York had teamed with Gregory to create its own eco-friendly brand. Its Loomstate for Barneys Green slip dresses, tank tops and hoodies were made entirely of organic cotton and vegetable dyes.

What Lies Ahead

With an additional 1,500 small and medium-sized brands and retailers using organic fibers, today’s global organic cotton market is mightier. But the U.S. market struggles with the rest of the domestic cotton industry to survive against international competition.

Ideally, organic cotton farmers would like apparel companies to commit to steady, yearly purchases of their harvests, as they told Grist . But with most sewing and milling operations in Asia and Latin America, apparel companies hardly find that sort of investing in domestic goods to be cost-efficient.

“If you were a farmer, you’d be a fool to grow organic cotton if you weren’t sure you’d get a living wage for your work,” said Marcia Gibbs of the Sustainable Cotton Project . “We’re seeing a big increase in people interested in organic cotton, but we’re not seeing people step up to the plate with their pocketbooks.”

Meanwhile, such companies have also set immediate goals for themselves to increase their organic cotton usage. H&M expects this year to use 3,000 metric tons of organic cotton — 100 times more than it did in 2006. Nike wants to incorporate by 2010 a minimum of 5 percent in all of its cotton-containing garments.

In conjunction, these brands also support the Better Cotton Initiative and the Organic Exchange , both network of organizations hoping to implement improved environmental and social conditions for farmers and their communities. Experts argue that such partnerships bring apparel companies together with community organizations as well, which is necessary for the organic materials market to grow.

"The goal of sustainable fashion, and that of the designers, global brands and not-for-profits who are working to make it happen, is to make unsustainable fashion a thing of the past," said Dan Harding of Innovations Report. He added, "It will only succeed if consumers, producers, retailers, designers, community groups and international corporations connect together and jointly recognize their influence in promoting change."