When notable sustainability milestones were supposed to be met, 2025 has kicked off on a rocky note. Rising geopolitical tensions, a right-leaning political shift, and numerous FMCG entities postponing their sustainability pledges are encouraging short-term, unsustainable strategies.
However, the escalating global climate crisis and heightened scrutiny from regulators and consumers underscore the necessity for action. Companies shying away from ESG-related initiatives risk losing ground to rivals that are exploiting the USD774.6 billion sustainability market of 2023. According to Euromonitor’s Sustainability Claims Tracker, sustainable products grew 1.1pp faster than unsustainable counterparts in terms of retail sales CAGR for 2020-2023.
As such, addressing sustainability in 2025 is vital for businesses to remain compliant, resilient, and competitive. By embracing sustainable practices, they stand to gain differentiation and loyalty in an increasingly sceptical consumer market demanding transparent and accountable communication.
Euromonitor International has identified three key trends shaping the global sustainability agenda in 2025.
Sustainability resilience amidst political shifts
The evolution of the sustainability agenda is intrinsically tied to the political landscape, with regulatory developments acting as a primary catalyst for corporate action. According to the Euromonitor Voice of the Industry Survey 2024, 71% of global companies are experiencing at least some governmental pressure to undertake climate initiatives. Thus, regulatory compliance is critical for maintaining long-term competitiveness.
However, political fluctuations can quickly disrupt the sustainability agenda. For instance, the second Trump administration's policies – such as the US withdrawal from the Paris Agreement, plans to boost fossil fuel production while restricting clean energy transition, and recent tariff wars – are leading US companies to prioritise short-term strategies, compromising the progress of sustainability projects.
Yet, the surge in regulations, such as the EU Green Claims Directive, Packaging and Packaging Waste Regulation, the global adoption of Extended Producer Responsibility laws, Deposit Return Schemes, Plastic Pacts, and the rise in laws enforcing sustainable sourcing and supply management, are tying business success ever more closely to sustainability. Hence, companies must effectively navigate these short-term challenges, keeping a keen eye on long-term implications to avoid penalties and reputational harm.
Leveraging sustainability to complement a product's value proposition
As geopolitical tensions fuel economic uncertainty, 2025 is set to witness strategic moves aimed at profit maximisation, increased margins, and intense price competition. This is particularly relevant for consumers struggling to maximise their budgets.
In such an environment, brand differentiation is a huge challenge. Sustainability features can help a brand to outperform its competitors, when implemented right, catering to the 62% of global consumers who, according to Euromonitor’s Voice of the Consumer: Sustainability Survey, fielded January to February 2024, 2025 (n=40,732), are worried about climate change and trying to have a positive environmental impact through their everyday actions. For instance, consumers’ desired features when purchasing food and beverage products are dominated by price, nutrition, and taste, where lower price has seen the largest increase from 2024 to 2025. However, sustainability is also present, as consumers also desire “natural” claims and increasingly want organic products, the second largest growing. On the other hand, generic claims, like “eco-friendly”, are less desired by savvy consumers who want reliable proof of products’ sustainability credentials.
Therefore, understanding sustainable consumers’ needs and attitudes is key to ensure products balance the proper mix of features that resonate and will win with consumers. Similarly, identifying which markets, categories, and claims to prioritise will help brands to successfully land their strategies.
Transparency and accountability are now mandatory to attract and retain consumers
Sustainable features must be substantiated since today's informed consumers are increasingly sceptical of corporate communication, which reflects the Eco Logical trend for 2025. This makes transparency and accountability not just desirable, but essential, as consumers want to know the full story of the products they buy – from sourcing to disposal.
Embracing sustainability can enable FMCG companies to connect more deeply with consumers and distinguish their brands.
Global per capita spend on sustainable products rose 23% over 2020-2023, with 24 out of 25 markets growing
Source: Euromonitor International’s Sustainability Claims Tracker
FMCG firms are under pressure to provide transparent, readily accessible information about their supply chains and environmental impact. Technologies like blockchain and QR codes are enabling real-time, trustworthy product data. This aligns with the EU's Digital Product Passport, expected to be mandatory for FMCG products by 2026. Through collaboration and effective data sharing within supply chains, companies can quickly identify and manage risks, fostering efficient, sustainable production without undermining profitability.
Learn more about our data-driven solutions on our Sustainability page.
Read our latest reports, Sustainable Packaging Opportunities: Meeting Demand, Ensuring Compliance and Innovation in Sustainability, for more actionable insights.