Sustainability Claims: Diets

Delivery

This report comes in PPT.

Key findings

General findings

Safer/No Chemical Ingredients is one of the smaller attribute groups with low value growth. However, the smallest area of Animal Welfare saw a positive uplift of 14% in 2023. Beauty and Personal Care recorded the most substantial value sales, while Pet Care expanded the fastest. As this attribute has the highest share of digital shelve, companies are planning to invest in stronger sustainable opportunities, including Sustainable Packaging and Sustainable Sourcing.

Where to play

The USA is the largest market for Safer/No Chemical Ingredients, supported by its advanced economy and size. India recorded the fastest value sales growth, with significant product prevalence and a high price premium. Opportunities exist to expand in China and Brazil, with China supporting the strongest, triple-digit price premium due to the lowest product prevalence, while Brazil has low product prevalence and showcased the highest price uplift.

How to win

Hair Care is the largest market with the strongest prevalence, where sales are driven by the leading No Sulphates claim, which supports the highest price premium. Colour Cosmetics recorded the fastest sales growth and product prevalence, offering opportunities as the industry has the highest price premium. While No Sulphates leads sales, expanding No Polythene could help boost value sales in Retail Hygiene and Bath and Shower, due to its strong price premium.

Competitor analysis

A strong presence in the leading industries, Hair Care, Skin Care and Laundry Care, supports Procter & Gamble’s lead. However, a mass market strategy means the player cannot charge a price premium while remaining competitive. L'Oréal Groupe expanded its prevalence, driven by Skin and Hair Care ranges. Food players Nestlé and Campbell Soups can support price premiums as rising concerns surrounding ultra-processed food and artificial ingredients drive sales.