- Upgraded Euromonitor Passport Sustainability platform helps businesses track performance of claims, understand consumer sentiment and craft effective sustainability strategies
- Passport Sustainability covers 11 industries, 25 global markets, 50 product categories and more than 70 sustainability claims
- Findings include 20% of all sales globally in 2023 were of products featuring sustainable claims
- Zero Waste and B Corp are the most frequently recurring claims among the top five fastest-growing sustainability value sales
LONDON, UK – More than 60% of global businesses implemented a sustainability strategy in 2024 but only 10% believe they are communicating their sustainability strategy effectively, reveals data analytics firm Euromonitor International.
Findings from Euromonitor’s new Passport Sustainability platform show that in 2023, 20% of all sales globally were of products featuring sustainable claims. These products have achieved, on average, 1.5% higher sales growth than non-sustainable products over the past four years
Passport Sustainability helps businesses track performance of sustainability claims, understand consumer sentiment and craft effective strategies.
The comprehensive and upgraded platform covers 11 industries, 25 global markets, 50 product categories and more than 70 different sustainability claims. Euromonitor has surveyed over 40,000 consumers and 900 professionals to understand their sustainability challenges.
Clear and honest communication to guard against greenwashing label
Maria Bogdanova, Senior Product Manager for Sustainability at Euromonitor International, said that the effectiveness of sustainable products hinges on clear and honest communication to guard against claims of greenwashing.
“While ‘natural’ remains the leading sustainability claim in value sales, its vague nature has raised concerns about greenwashing. Brands have attempted to clarify this with descriptions like ‘chemical-free’ but the absence of a standardised definition leads to varied interpretations, which can confuse consumers and undermine trust.
“This issue is particularly prominent 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 to these concerns, with upcoming bans on unsubstantiated sustainability claims.
“The impact of this regulatory shift is already visible, with the digital share of shelf for ‘natural’ claims declining by 2% in these industries over the last three financial quarters, according to Q2 2024 Euromonitor Sustainability Opportunity Tracker data.
Top Three Value Sales Claims by Industry – Organic, No GMO, Vegan/Vegetarian
Beyond Natural, clean labels such as Organic and No GMO and diet claims like Vegan and Vegetarian ranked among the top three in value sales across packaged food, beauty and personal care, pet care and consumer health in 2023.
Bogdanova said that despite challenges such as higher price points and concerns about over-processing, the shift away from animal-based products continues to gain momentum in the food industry. Sales of vegetarian products increased across all food categories in 2023.
“The presence of these products on shelves varies significantly by category. Breakfast Cereal leads the way, with over 20% of all products featuring a vegetarian claim in Q2 2024, followed by Sweet Biscuits, Snack Bars and Fruit Snacks at a distant second with only 9%. Looking ahead, the share of vegetarian, vegan, and plant-based products is expected to grow, driven by aggressive investments in private label ranges from major global retailers like Tesco, Walmart, Albert Heijn, Carrefour, and Lidl.
The Vegan claim also makes significant inroads beyond food, particularly in beauty products, as consumer concerns over animal cruelty and environmental impact grow. Consumers are increasingly wary of animal-derived ingredients, prompting brands to innovate with plant-based alternatives that align with their sustainability goals. Unsurprisingly, Cruelty Free emerged as a close third in the top value sales claims in the industry.
“Sustainability is also a key concern when it comes to packaging, particularly in the home, tissue, hygiene, and non-alcoholic drinks sectors. Consumers demand more recyclable and sustainably sourced packaging materials, pushing brands to innovate. For instance, many companies now prominently feature using packaging from Sustainable Sources as part of their marketing strategies.”
Motivations for sustainability investments and the issue of Greenhushing
Improving customer perceptions and enhancing brand reputation are the primary motivations behind companies' investments in sustainability. According to Euromonitor International’s 2024 Voice of the Industry Sustainability Survey, 71% of professionals cited these reasons as their top priorities, marking a three-percentage points increase from 2023.
Bogdanova said companies face a delicate balancing act - they must avoid calls of greenwashing, overstating or falsely claiming sustainability efforts while also addressing the emerging concern of greenhushing, underreporting or downplaying sustainability initiatives due to fear of scrutiny.
The Packaged Food industry has been particularly impacted by this dynamic, with a significant reduction in sustainability product offerings over the past four years. This shift is largely due to backlash from high-profile greenwashing cases involving major brands prompting companies to tread carefully in their sustainability communications, decreasing in the visibility of genuinely sustainable products.
Product Availability of Sustainability Products out of Total Products (Share of Shelf) by Industry in 2023
Spotlight on Zero Waste and B Corp Claims
Zero Waste and B Corp are the most frequently recurring claims among the top five fastest-growing sustainability value sales claims across 11 industries. Each claim ranks among the fastest-growing in three industries, indicating that companies in the Fast-Moving Consumer Goods sector are increasingly pursuing these certifications to build consumer trust and clearly communicate their commitment to waste management and ethical operations.
The Zero Waste claim reflects a commitment to achieving a circular economy, where companies systematically take on the opportunity to reduce raw material use and minimise waste.
Although still a niche claim, its popularity is growing rapidly, with value sales of products with this claim increasing by 33% in 2023. A leading example is Colgate-Palmolive, which has committed to achieving 100% TRUE Zero Waste certification across its global operations by 2025. This ambitious goal is communicated clearly on their product packaging, reinforcing their commitment to sustainability.
Bogdanova said that B Corp certification, which signifies a company's commitment to social and environmental performance, accountability and transparency, is also gaining traction. With over a fifth of global consumers preferring to buy from purpose-driven businesses, more companies are seeking B Corp certification to demonstrate their commitment to sustainability and avoid greenwashing accusations.
The Beauty industry is a leader in the number of B Corp certified products with established brands like The Body Shop and emerging players like Dr Hauschka and Elemis that have embraced the certification. This trend is also spreading to other sectors, with staple foods and snacks number of SKUs with B Corp claim increasing by 49% and 40%, respectively, over the last two years.
“Obtaining B Corp certification is no small feat. The process can be lengthy, depending on the company's size and complexity, requiring a thorough impact assessment and a certification fee based on revenue. Despite these challenges, the importance of B Corp is expected to grow, with the UK and the US leading in adopting B Corp-certified products, though these still account for less than 1.5% of all products across 11 industries as of Q2 2024.”
Share vs Growth of SKUs with B Corp Claim out of Total SKUs cross 11 Industries between Q2 2023 and Q2 2024
Note: This size of the bubble is equal to the number of SKUs with a B Corp claim by market.
Source: Euromonitor Sustainability Quarterly Opportunity Tracker.
Bogdanova added: “As sustainability continues to be a key driver in consumer decision-making, companies must adapt their communication strategies to remain effective. This involves navigating the challenges of greenwashing and greenhushing, ensuring that sustainability claims are both substantiated and clearly communicated.
“When determining their market strategy, companies must plan not only for the current landscape of sustainable products but also for future trends by understanding the evolving direction of countries. This forward-looking approach ensures alignment with key consumer drivers and helps maintain a competitive edge.
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