Sustainability-marketed products have reached 25.4% of CPG dollar share in the United States, up 1.6 percentage points versus the prior year, firmly establishing sustainability as a primary growth engine for the industry, according to Sustainability in U.S. CPG: Inside the Consumer Mindset, released by Circana LLC and the NYU Stern Center for Sustainable Business (CSB).
"Consumers increasingly view 'healthy for me' and 'healthy for the planet' as intertwined outcomes, driving a stronger preference for products that signal both," says Lauren Hazenfield, principal of CPG thought leadership advisory at Circana. "Brands that deliver clear, personally relevant sustainability benefits are successfully driving consumer value."
"The continued expansion of sustainability-marketed products, now capturing over a quarter of the market, demonstrates that sustainability is a proven engine for resilient growth," adds Randi Kronthal-Sacco, senior scholar at the NYU Stern Center for Sustainable Business. "Despite economic uncertainty, these products are expanding at more than five times the rate of conventional alternatives, proving that consumers are actively voting with their wallets for sustainable choices."
Key takeaways:
· Sustainability-marked products achieved a five-year compound annual growth rate of 10.9%, growing nearly five times faster than conventionally marketed goods.
· Despite representing a quarter of the market, sustainability-marketed products have contributed to nearly half of all total CPG market growth since 2013.
· 85% of consumers believe it is important that name-brand product manufacturers practice sustainability, representing a five-point increase from the previous year.
· Younger generations routinely factor sustainability into their brand evaluations, signaling a lasting generational shift in purchasing decisions.
· Despite financial pressures, consumers continue to value sustainability and are willing to pay an average 9% premium for sustainability features.
