The NYU Stern Center for Sustainable Business and Circana, formerly IRI and NPD, today released the 2022 update of the CSB Sustainable Market Share Index™. Now in its fourth year, this report examines consumer purchases of sustainability-marketed consumer packaged goods (CPG). Highlights from the latest research include:
·Growth for sustainability-marketed products in 2022
·In the face of high inflation and pressure on U.S. consumers’ wallets, sustainability-marketed products outperformed conventionally marketed products across 36 categories and grew +0.3 points to 17.3% of purchases.
·Sustainability marketed products’ five-year compound annual growth rate (CAGR) sits at 9.48%, outpacing its conventional counterpart at 4.98% for the same period.
·Price premium differential between sustainable and conventional products narrowed
·Sustainability-marketed products still enjoy a price premium of 27.6% compared to their conventional counterparts, but the price gap did narrow this past year as many conventional products executed above-inflation price increases and several lower-priced conventional products added sustainable features.
“Our annual research with Circana continues to be a must read for marketers, and this year’s results definitively show that sustainable products survived inflation,” asserts Randi Kronthal-Sacco, senior scholar, NYU Stern Center for Sustainable Business. “In a clear nod to changing consumer preferences, we are encouraged to see that several large legacy brands have also begun to adopt sustainable benefits in their product lineup.”
“It’s important for brands to leverage their sustainability attributes in their marketing messaging, as studies show that leveraging such messaging can generate incremental sales,” says Doug Yolen, vice president, Center of Store, Media Center of Excellence at Circana.
Growth Summit 2023 Presentation: “Resuming the Sustainability Agenda”
Circana’s Doug Yolen and NYU Stern’s Randi Kronthal-Sacco will present findings of the study during the breakout presentation “Resuming the Sustainability Agenda” at Circana’s Growth Summit 2023 in Las Vegas on March 21 at 4 p.m. PT.
About New York University Stern School of Business
New York University Stern School of Business, located in the heart of Greenwich Village and deeply connected with the city for which it is named, is one of the nation’s premier management education schools and research centers. NYU Stern offers a broad portfolio of transformational programs at the graduate, undergraduate, and executive levels, all of them enriched by the dynamism and deep resources of one of the world’s business capitals. NYU Stern is a welcoming community that inspires its members to embrace and lead change in a rapidly transforming world. Visit www.stern.nyu.edu.
About NYU Stern Center for Sustainable Business
The NYU Stern Center for Sustainable Business (CSB) envisions a better world through better business. The Center was founded on the principle that sustainable business is good business — delivering better financial results while protecting the planet and its people. CSB aims to help current and future business leaders embrace proactive and innovative mainstreaming of sustainability, resulting in competitive advantage and resiliency for their companies as well as a positive impact on society. Visit the Center’s website and follow CSB on Twitter: @NYUSternCSB.
Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at www.circana.com.