Sustainable Market Share Index™The Sustainable Market Share Index is an annual analysis of the latest national purchasing data for consumer packaged good (CPG) products marketed as sustainable. NYU Stern Center for Sustainable Business (CSB) partners with IRI, who generously donated the purchasing data of sustainably-marketed products in 36 CPG categories (excluding alcohol and tobacco), comprising ~40% of the total CPG market in sales from 2013-2021. CSB uses this data to report on the market share for sustainable products and what factors are contributing to its continued growth. Pioneered by Senior Scholar Randi Kronthal-Sacco, each year's report builds on previous analysis and addresses new research questions based on current trends. Click here to read the full 2021 report, and see below of key findings and previous reports.
The 2021 Sustainable Market Share Index™ finds that sustainability-marketed products are responsible for a third of the growth in consumer packaged goods (CPGs) from 2015 to 2021, and market share growth continues year over year.Sustainability-marketed products continue to grow despite the COVID-19 pandemic.
- Products marketed as sustainable now hold a 17.0% market share, up +3.3 percentage points verus 2015, with significant growth during the pandemic.
- Sustainability marketed products delivered approximately one-third of all CPG growth, despite representing 17% share.
- Carbon labeled products now account for $3.4B in sales, doubling from $1.7B in 2020.
- Products marketed as sustainable grew 2.7x faster than products not marketed as sustainable and achieved a 6-YR CAGR of 7.3% vs. 2.8% for its conventional counterparts.
- The market share of sustainability-marketed products aligns along a continuum based on perceived category functionality or efficacy. Even in categories with low shares, shares of sustainability-marketed products increased.
- Sustainability marketed products enjoy stronger shares online vs. in-store.
*weighted by sustainable dollars
- Sustainability-marketed branded products have a price premium of 28% vs. their conventionally marketed branded counterparts, but the differential has decreased-11.8 pts since. 2018 as more historically conventional products adopt sustainable benefits.
- Since the pandemic, year to year price increases of conventionally marketed products have outpaced their sustainable counterparts.
- Sustainability-marketed products are largely less sensitive to price.
- The percentage of new products that incorporate sustainability benefits have increased every year since 2017.
- In 2021, approximately one out of every two new products introduced had a sustainable benefit.
- Green Chemistry formulations are growing share and contributing differentially to category growth.