A new report by Euromonitor International reveals that over 60% of global businesses implemented sustainability strategies in 2024, yet only 10% believe they are effectively communicating these efforts.
Data from Euromonitor’s upgraded Passport Sustainability platform shows a growing focus on sustainable products, with 20% of global sales in 2023 involving products featuring sustainability claims. These products have achieved, on average, 1.5% higher sales growth over the past four years.
The Passport Sustainability platform, which now covers 11 industries, 25 global markets, 50 product categories, and over 70 sustainability claims, is designed to help businesses track the performance of their sustainability initiatives, better understand consumer sentiment, and develop effective sustainability strategies.
Concerns Over Greenwashing
Maria Bogdanova, Senior Product Manager for Sustainability at Euromonitor International, emphasised the importance of clear and honest communication to avoid accusations of greenwashing, a practice where companies exaggerate or misrepresent their environmental credentials.
“While ‘natural’ remains the leading sustainability claim in value sales, its vague nature has sparked concerns about greenwashing, especially in industries like beauty, personal care, and pet care. In 2023, 39% of beauty and personal care products, and 37% of pet care products, carried ‘natural’ claims. Regulatory bodies in the EU and several US states are starting to crack down on unsubstantiated sustainability claims,” Bogdanova explained.
Top Claims Driving Value Sales: Organic, No GMO, Vegan/Vegetarian
In addition to natural claims, clean labels like Organic and No GMO, as well as dietary claims such as Vegan and Vegetarian, ranked among the top three sustainability claims across packaged food, beauty and personal care, pet care, and consumer health industries.
“Breakfast cereals are leading the way, with over 20% of products featuring a vegetarian claim, followed by snack items like sweet biscuits, snack bars, and fruit snacks at 9%. This trend is expected to grow, driven by major investments from global retailers including Tesco, Walmart, Albert Heijn, Carrefour, and Lidl,” Bogdanova added.
Rising Interest in Zero Waste and B Corp Certification
Among the fastest-growing sustainability claims, Zero Waste and B Corp certification stand out. Companies making Zero Waste commitments are pledging to reduce raw material usage and minimise waste, while B Corp certification signifies a commitment to social and environmental performance.
“B Corp certification is becoming increasingly sought after, particularly in the beauty industry, with brands like The Body Shop, Dr Hauschka, and Elemis embracing it. In the past two years, the number of staple food and snack products with B Corp certification has risen by 49% and 40%, respectively,” Bogdanova noted.
As sustainability continues to shape business strategy globally, Euromonitor’s Passport Sustainability platform provides valuable insights to help companies navigate the evolving landscape.
