In 2024, over 60% of global businesses adopted sustainability strategies, but only 10% believe they are effectively communicating these efforts, according to a report from data analytics firm Euromonitor International.
Euromonitor’s new Passport Sustainability platform revealed that in 2023, 20% of global sales were for products boasting sustainable claims. These products experienced an average sales growth of 1.5% over the past four years. Passport Sustainability helps businesses monitor the performance of sustainability claims, analyse consumer sentiment, and refine strategies. The updated platform tracks 11 industries, 25 global markets, 50 product categories, and over 70 sustainability claims.
Maria Bogdanova, Senior Product Manager for Sustainability at Euromonitor, emphasized that the success of sustainable products depends on clear communication to avoid greenwashing. She said, “While ‘natural’ remains the leading sustainability claim in value sales, its vague nature has raised concerns about greenwashing, particularly in the Beauty, Personal Care and Pet Care industries, where 39% and 37% of products respectively, feature ‘natural’ claims in 2023. Regulatory bodies in the EU and several US states are responding with bans on unsubstantiated sustainability claims.”
In addition to “natural,” claims such as “organic,” “no GMO,” and dietary labels like “vegan/vegetarian” ranked among the top three value sales claims across packaged foods, beauty and personal care, pet care, and consumer health sectors.
Bogdanova said, “Breakfast Cereal leads the way, with over 20% of all products featuring a vegetarian claim followed by Sweet Biscuits, Snack Bars and Fruit Snacks with only 9%. The share of these clean products is expected to grow, driven by aggressive investments from global retailers like Tesco, Walmart, Albert Heijn, Carrefour, and Lidl. ”
Among the fastest-growing sustainability claims are “zero waste” and “B Corp” certifications. Zero Waste commits companies to minimising raw material usage and waste, while B Corp certification indicates a business’s dedication to social and environmental performance. The beauty industry leads in the number of B Corp-certified products, with brands like The Body Shop, Dr. Hauschka, and Elemis embracing the certification. Additionally, the number of B Corp-certified products in staple foods and snacks has surged by 49% and 40%, respectively, over the past two years.