U.S. sustainable products share performance

This report reviews consumer purchasing of products marketed as sustainable in over 36 consumer packaged goods (CPG) categories, which comprise approximately 40% of the total CPG market by value. Branded products marketed as sustainable now hold a 25.4% market share, representing an increase of 10.8 percentage points since 2013 and a rise of 1.6 percentage points compared to the previous year. This growth occurred despite external volatility and significant inflation in the market.

Sustainability-marketed products have shown resilience, with both sustainable market share and store brand share growing compared to the prior year. The sustainable share grew by 1.6 percentage points, while store brand share rose by 0.3 percentage points, both gaining at the expense of conventionally marketed products. Branded sustainable products appear more insulated from inflation-driven moves towards store brands than their conventional counterparts.

Between 2020 and 2025, sustainability-marketed products grew 4.9 times faster than products not marketed as sustainable. These products achieved a five-year compound annual growth rate (CAGR) of 10.9%, which is significantly higher than the 2.2% CAGR recorded for conventional counterparts. Furthermore, despite representing about a quarter of the market share, sustainability-marketed products delivered 44.9% of the total CPG market growth between 2013 and 2025.

Category performance

More than half of the categories analysed have experienced sustainable market share increases of more than 10 percentage points since 2013, with some increases ranging up to 80 percentage points. Categories with greater than 20% sustainable share include fresh bread, vitamins, soup, floor cleaner, coffee, paper napkins, laundry detergent, natural cheese, skincare, deodorant, yogurt, soap, milk, and facial tissue. In contrast, categories such as carbonated beverages, chocolate candy, and pet food maintain less than 5% sustainable market share.

Price premiums (2024 report)

Branded products marketed as sustainable command an average price premium of 26.6% compared to conventionally marketed branded counterparts. However, this differential has stabilised after declining from its peak of 39.5% in 2018. During the pandemic and subsequent inflationary periods, the price gap narrowed by 12.9 percentage points, indicating that price increases for conventional products significantly outpaced those of sustainable products.

The price premium varies significantly by category. While sustainable products command premiums in the majority of categories, ranging from 1% to 167.7%, a few categories, such as dish detergent and laundry care, feature price discounts compared to conventional products. The highest premium of 167.7% was observed in the carbonated beverages category.

European markets (2024 report)

The research finds that sustainable shares in the two European markets examined exceed those of the United States. Branded products marketed as sustainable account for 36.8% of the market share in the United Kingdom and 42.0% of the market share in Germany. These regions also demonstrate sustainability claims that are specific to their respective geographical markets.

Demographics (2023 report)

The demographic profile of the sustainable purchaser reveals that upper-income, millennial, college-educated, and urban consumers are the most likely to buy sustainability-marketed products. Millennials represent 30% of total CPG sustainable sales composition, while Baby Boomers account for 33% and Gen Xers contribute 31%. Generally, the younger the household, the more likely they are to purchase sustainable products.

Education and affluence are also strong indicators of sustainable purchasing habits. Consumers with postgraduate education or who have graduated from college account for 54% of sustainable sales. Similarly, upper-income households represent 41% of sustainable sales, while middle-income households contribute 38%. Geographically, consumers in more urban areas are more likely to buy these products, with the top 25 markets accounting for 42% of the sales composition.

Innovation (2021 report)

Sustainability has become increasingly important in new product development. The percentage of new products that incorporate and communicate sustainability benefits has increased every year from 2017 to 2021. In 2017, 28.06% of new products had sustainable attributes; by 2021, this figure rose to 48.10%, meaning nearly one out of every two new products introduced had a sustainable benefit.

Methodology

The study used Circana Point of Sale and household panel data across all measured channels in the U.S., as well as Point of Sale data for the UK and Germany. The analysis reviewed over 250,000 products in the U.S. across 36 categories holding the largest dollar volume. Sustainability was determined based on on-package communication, such as third-party certifications. The research focused on the product itself rather than the recyclability of the packaging.