You have to consider the context. Sure, it works as in "serving a niche". But it doesn't work in the "serves everybody but a niche" - which is what counts when it comes down to mass production at scale. And it doesn't work because cost is a big factor for the mainstream.
For an obvious example, take organic food. The industry wordwide is ~100 billion USD. It's % of food sales? 5.5%. So while the numbers are big on their own, it doesn't cut it in the mainstream. As a niche it works, as a mainstream it doesn't.
It works all the time. Hence "green" labels, virtue signalling, etc.
You have to consider the context. Sure, it works as in "serving a niche". But it doesn't work in the "serves everybody but a niche" - which is what counts when it comes down to mass production at scale. And it doesn't work because cost is a big factor for the mainstream.
For an obvious example, take organic food. The industry wordwide is ~100 billion USD. It's % of food sales? 5.5%. So while the numbers are big on their own, it doesn't cut it in the mainstream. As a niche it works, as a mainstream it doesn't.