Sustainability Top of Mind for Growing Number of Shoppers

Environmental issues are having a greater impact on purchase decisions in several product categories for a growing number of shoppers, a new report from Circana shows.

For example, unit sales of footwear made with recycled materials have grown more than six-fold over the past three years, while sales of non-recycled options have declined. Additionally, as the prestige beauty category thrives, unit sales of refillable options are also growing, more than doubling in the past three years while the rest of the market grew 25%.

“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. “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.”

In a 2022 study conducted by Circana with the New York University Stern Center for Sustainable Business, among 36 CPG categories, sustainability-marketed products had a 17.3% share, but grew 30% 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 has increased 12% year-over-year, and 30% compared to three years ago, outpacing the industry averages for both comparisons. 

Also notable, sales of vegan cookbooks have also been on a steady rise over the past four years, which indicates a consumer desire for incorporating more sustainable, plant-based foods and beverages into their diets.

“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.”