Circana: Sustainability products surpass quarter of CPG sales

CHICAGO and NEW YORK — Sustainability-marketed products now account for more than a quarter of U.S. consumer packaged goods sales, reinforcing their role as a central growth driver for the industry, according to new research by Circana and the NYU Stern Center for Sustainable Business.

The 2025 update to the CSB Sustainable Market Share Index found that sustainability-marketed products accounted for 25.4% of total CPG dollar share, up 1.6 percentage points from the prior year, highlighting the continued expansion of sustainability as a core consumer and retail priority.

The data underscores how much these products are outperforming conventional alternatives. Sustainability-marketed goods achieved a five-year compound annual growth rate of 10.9%, nearly five times faster than traditionally marketed products. Despite representing roughly a quarter of the market, they have contributed nearly half of total CPG growth since 2013.

At the same time, consumer expectations are evolving alongside this growth. The study found that 85% of consumers believe it is important for branded manufacturers to practice sustainability, a five-point increase year over year. Younger consumers, in particular, consistently incorporate sustainability into their purchasing decisions, signaling a longer-term generational shift.

Even in a pressured economic environment, consumers continue to value sustainability attributes. Shoppers are willing to pay an average 9% premium for products positioned around sustainability, though the report notes that current price premiums remain higher, suggesting an opportunity for brands and retailers to better align pricing with perceived value.

“Consumers increasingly view 'healthy for me' and 'healthy for the planet' as intertwined outcomes, fueling a stronger preference for products that signal both,” said Lauren Hazenfield, principal of CPG Thought Leadership Advisory at Circana. “Brands that deliver clear, personally relevant sustainability benefits are successfully creating consumer value.”

“The continued expansion of sustainability-marketed products, now capturing over a quarter of the market, demonstrates that sustainability is a proven engine for resilient growth,” said Randi Kronthal-Sacco, senior scholar at the NYU Stern Center for Sustainable Business. “Despite economic uncertainty, these products are expanding at more than five times the rate of conventional alternatives, proving that consumers are actively voting with their wallets for sustainable choices.”

For mass retailers, the findings reinforce sustainability’s transition from a niche attribute to a mainstream merchandising and growth lever, particularly as private-label portfolios, better-for-you assortments, and value positioning continue to evolve in response to shifting consumer priorities.