The NYU Stern School of Business does an annual report on the performance of CPG (consumer packaged goods) sustainable brands versus their non-sustainable competitive peers. Here is the report.
Key points:
- Sustainable products enjoyed a 29% price premium AND grew 2.7x faster
- Let’s say that again – They charged materially more while also lapping the field
- Are you charging 29% more while also more than doubling your competitor’s sales?
- Think of the impact on your margin of being able to charge 29% more
- Sustainable products now account for 17% of all products and produce one-third of all CPG growth
- In 2021, one out of two new products were presented as sustainable
- Carbon-labeled products have doubled since 2020
- “Our analysis demonstrates that products marketed as sustainable continue to grow faster than their conventional counterparts, drive innovation, and contribute to one third of the growth to overall CPG, despite a significant price premium. Moreover, these products not only survived, but continued to grow during the pandemic. Our research demonstrates the perceived consumer demand is realized by purchasing data, and growing,” said Randi Kronthal-Sacco, Senior Scholar at the NYU Stern Center for Sustainable Business (CSB), who pioneers the research initiative.