Sustainable value creation is the integration of environmental, social and governance (ESG) issues into business core strategy to create long-term value. This is especially important in the fast-moving consumer goods (FMCG) sector, where market volatility and geopolitical complexity have the potential to impact consumer behaviour and operational resilience. Prioritising sustainability can help businesses to navigate uncertainty, drive uptake, enhance consumer loyalty and secure supply chain stability, contributing to long-term success.
23 markets recorded double-digit growth in per capita spending on sustainable products from 2020 to 2024 (out of 25 tracked, globally)
Source: Euromonitor Sustainability Claims Tracker, considering products carrying at least one sustainable claim
Euromonitor’s How Creating Sustainable Value Drives Business Growth report explores the urgency for FMCG companies to prioritise sustainability, even amid geopolitical and market uncertainty. Here are some insights from it.
Building the case for sustainable value creation
Sustainability is becoming a strategic imperative as stakeholder pressure, especially from boards and investors, intensifies. In fact, according to Euromonitor’s Voice of the industry Survey, corporates feeling at least some pressure from the board rose by 7.8 percentage points from 2024 to 2025, globally.
Despite market volatility and regulatory uncertainties, boosted by shifting political agendas, companies are still compelled to prioritise sustainability. Initiatives like Climate Action 100+ are driving companies to strengthen climate governance and reduce emissions.
With evolving regulations such as the EU's Omnibus Directive streamlining sustainability reporting, companies must integrate sustainable practices and transparent reporting to meet expectations and ensure long-term success, as seen in the responses of major players like P&G and Unilever.
Sustainability can enhance both profitability and communication
Despite sustainable products driving growth, with sustainable products outperforming their non-sustainable counterparts in 10 out of 11 tracked industries during 2020-2024, many companies have deprioritised sustainability in their strategies due to economic volatility. However, with increased intentions to launch more sustainable products in 2025, balancing sustainability and profitability is key.
Integrating sustainability into corporate strategy can support cost-efficient activities and enhance product value proposition and differentiation. Beyond regulatory compliance, a strong sustainability strategy also boosts communication, an area where only 6% of global companies currently excel.
Three ways sustainability enhances value proposition
Sustainability is no longer just a moral or regulatory obligation – it is a strategic lever that can drive profitability, differentiation and resilience, especially in today’s volatile global context.
To navigate increasingly complex markets, embedding sustainability into the heart of business strategy – aligned with company values and evolving consumer expectations – is critical to create long-term value and gain competitive advantage.
By adopting a holistic approach to sustainability, rather than focusing on a single issue, businesses can achieve significant growth and stand out in the market. For instance, optimising packaging and offering refill options, along with using upcycled ingredients, help manage waste and reduce the need for virgin materials, leading to lower emissions and cost savings. However, the challenges vary widely across industries and categories, and companies must tailor their strategies to address the most urgent issues while leveraging their unique strengths.
Transparency is crucial, and certain industries are setting the pace. In fact, beauty and personal care (BPC), snacks and pet care are the top three fastest-growing sectors in sustainability sales, according to Euromonitor's Sustainability Claims Tracker. By examining effective strategies and identifying the right claims to use, businesses can find the right levers to enhance value proposition through sustainability.
Read our latest report, How Creating Sustainable Value Drives Business Growth, for more actionable insights on sustainable value creation in BPC, snacks and pet care.
Learn more about our data-driven solutions on our Sustainability page.