Roughly 40 percent of consumers reported that environmental issues impact their decision on whether to shop at a specific retailer or manufacturer, according to Circana, formerly IRI and The NPD Group. This is the first time environmental issues surpassed social issues in this category.
“Products that impact our energy use, reduce waste, and use recycled materials or natural ingredients are all getting attention from consumers and presenting pockets of retail growth,” said Marshal Cohen, chief retail industry advisor for Circana, in a statement. “Despite concerns related to rising prices, consumers continue to prove their willingness to spend on the right products that deliver the value—and values—they seek.”
Sustainability is making its mark on the CPG industry. Circana conducts annual research with the New York University Stern Center for Sustainable Business and found that among 36 CPG categories in 2022, sustainability-marketed products had a 17.3 percent share, but grew 30 percent from the prior year. The most prevalent sustainable claim on consumer food and beverage products is “recyclable,” and revenue for products touting the fact that they use recyclable packaging increased 12 percent versus last year, and 30 percent compared to three years ago, outpacing the industry averages for both comparisons.
“The continued growth in sustainable product sales demonstrates the importance of bringing newness and innovation to the market,” said Cohen. “Even with all the economic and political distractions facing consumers, they continue to demonstrate a focus on sustainability and a willingness to pay a premium for it. Bringing sustainability to the forefront continues to be a wise marketing tool and, for some brands, the main tool when it is built into the DNA of the product.”
Sales of vegan cookbooks have also steadily risen over the past four years, indicating a consumer desire to incorporate more sustainable, plant-based foods and beverages into their diets, according to Circana. Increased spending is going toward categories like oat milk and frozen meat substitutes.
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