Integrating sustainability into product development has become a fundamental aspect of business strategy as the rising demand for sustainable products is fuelling revenue growth. According to Euromonitor’s Sustainability Claims Tracker, sustainable products outperform non-sustainable ones in nine out of 11 industries, in terms of retail sales CAGR (2020-2023).
Consumers today value sustainability alongside quality and affordability. While consumers are concerned about climate change and eager to make a difference, they often struggle to align their values with their budgets. Unclear messaging and limited options highlight the need for businesses to improve consumer education and expand the availability of efficient, budget-friendly and sustainable solutions to enhance brands’ value propositions.
Product claims significantly impact consumer choices, with many preferring sustainable items even in the face of inflation. However, these claims need to be backed by evidence, like third-party certifications, to establish trust and justify the additional expense incurred by consumers.
Editor’s pick: Five innovative sustainable products in Q2 2024
How to unlock sustainable innovation
The future of innovation in sustainability hinges on ensuring that the core goals of authenticity, transparency, and tangible benefits for both consumers and the environment are achieved. Success in launching new products lies in embedding sustainability across the product lifecycle, from sourcing to waste management, backed by both broad and specific certified claims. However, sustainability should not compromise on value for money, performance, or quality. The top five examples showcased above have demonstrated that sustainability can indeed enhance a product's proposition, without trading off consumer expectations.
Data-driven analysis is crucial to understand and effectively execute this strategic innovation shift towards addressing growing sustainability demand from the consumers. Learn more about our solutions on our Sustainability and Innovation pages.
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