Leaning into sustainability is a winning formula for private brands with the topic being front-of-mind for consumers, according to experts who spoke at Natural Products Expo West 2023.
Sherry Frey, VP of Total Wellness at NIQ, formerly NeilsenIQ, and Steve Noble, senior partner at McKinsey & Company, both detailed the “The Evolving Business Case for Sustainability” at the recent event held in Anaheim, Calif.
Noble said that sustainability is important for consumers and is translating to the products that they purchase. According to NIQ data, 69% of consumers say that sustainability has become more important to them over the last two years, and only one-in-four consumers believe companies are not making it easy for them to support ESG initiatives.
“Over the course of five years, there was a meaningful difference on average,” said Noble. “The products that did not have any of these [sustainability] claims grew 4.7% per year. Products that did have these claims grew at almost 6.5%. Doesn’t mean that it happens for every product or category, but on average, really significant growth that we saw.”
Of the products that made sustainability claims, ranging from ethically farmed or harvested, organic, non-GMO and more, private brands were among the most popular, showing the intersection between consumers wanting high-value products and making a difference with their purchases.