How Creating Sustainable Value Drives Business Growth

July 2025

This report explores the urgency for FMCG companies to prioritise sustainability, even amid geopolitical and market uncertainty. Focusing on the top three fastest growing industries – beauty and personal care, snacks, and pet care – it highlights how targeted sustainability initiatives can enhance products’ value proposition, drive cost efficiencies, generate new revenue streams, foster differentiation, and build resilience.

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Key Findings

Blending sustainability on top of core needs

By integrating sustainability into core business strategies, brands can substantiate meaningful claims that drive new revenue, enhance efficiency and mitigate risks, setting them apart beyond just meeting core customer needs.

Compact formats and sustainable formulations drive growth in beauty and personal care

The beauty and personal care industry is at the forefront of sustainability, with sustainable products outperforming non-sustainable ones. Brands are embracing solutions such as refill formats and lightweight solutions, including compact hair care formats, to reduce emissions and water usage, while prioritising formulation safety.

Health-conscious consumers demand supply chain transparency and dietary inclusivity in snacks

Health-conscious consumers are driving demand for transparency and dietary inclusivity in snacks. Regional preferences are shaping responses. In India, for example, brands are incorporating superfoods and healthier oils, while in the UK, sustainable sourcing and eco-friendly packaging are becoming mainstream, alongside a focus on dietary inclusivity.

Pet humanisation drives demand for nutritious, sustainably produced products

Pet humanisation is driving growth in pet care, with brands expanding their sustainability claims beyond “natural” labels to encompass holistic practices like B Corp certification, organic ingredients, zero waste initiatives and eco-friendly packaging, meeting pet owners’ demands for both nutrition and sustainability.

Building resilience through sustainable strategies and technology

As volatility and disruptions persist, embedding sustainability into corporate strategy is vital for resilience. Leveraging technologies like AI and blockchain enhances transparency, substantiates sustainability claims, and ensures regulatory compliance, demonstrating value to stakeholders and driving long-term relevance.

Leveraging sustainability for profitability and competitive advantage
Key findings
Unlocking the power of sustainable value creation
Building the case for sustainable value creation
Three ways sustainability enhances value proposition
Finding the right claims to link sustainability and profitability
Three ways sustainability enhances value proposition in beauty and personal care
Rethinking packaging and formulation drives differentiation in fragrances
Sustainability communication in fragrances
Cutting virgin plastic and saving water through lightweight hair care
Sustainability communication in hair care
Three ways sustainability enhances value proposition in snacks
Blending sustainability along nutrition and packaging in sustainable snacks
Sustainability communication in snacks in India
Sustainable confectionery in the UK: Aligning social and environmental priorities
Sustainability communication in Snacks in the UK
Three ways sustainability enhances value proposition in pet care
Sustainable sourcing rises to tap pet care potential in the US
Sustainability communication in pet care in the US
Brazilian consumers have tripled their spending on sustainable pet care products
Sustainability communication in pet care Brazil
Three areas that can unlock potential for sustainable value creation
Six steps to implement sustainability into corporate business strategy
Evolution of how creating sustainable value drives business growth
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