The 2024 Sustainable Market Share Index™ shows CPG products marketed with sustainable attributes increased market share by 2.6 percentage points since last year, but are dwarfed by European markets
Chicago, May 27, 2025 (GLOBE NEWSWIRE) — The 2024 Sustainable Market Share Index™ (SMSI), an annual research initiative at the NYU Stern Center for Sustainable Business (CSB) in partnership with Circana LLC, shows consumer packaged goods (CPG) products with sustainable attributes marketed on the package enjoy 23.8% market share, up from 21.2% in the previous year. For the first time, CSB also conducted the methodology on two European markets, the United Kingdom and Germany, to find a significantly higher market share in both countries.
Key findings include:
- In 2024, the United States’ market share of sustainable products was 23.8% (excludes private label/store brand purchases). The share of sustainable products and private label products are both steadily increasing at the expense of conventional products.
- The UK and German sustainable markets largely outweigh the U.S. share. In the UK, sustainable products make up 36.8% of the market share, and in Germany, 42.0%.
- Market share of sustainable products in the U.S. has increased by 9.2% since 2013.
- Products marketed as sustainable achieved a five-year CAGR of 12.4%, growing 2.3 times faster than conventionally marketed products and outpacing the total U.S. market’s 6.8% CAGR.
- 19 of the 36 individual categories analyzed in the U.S. have seen a +10% increase in the sustainable market share since first analyzed in 2013.
- Sustainable products in the U.S. still enjoy a significant price premium, costing an average of 26.6% more than their conventional counterparts. However, the price premium has stabilized, largely unchanged throughout the recent inflationary period. Moreover, the average price premium across all categories is at or below 5% in the European markets studied.
“Sustainability isn’t just a trend; it’s a business imperative,” said Joan Driggs, vice president of Content and Thought Leadership at Circana. “This research demonstrates that products marketed as sustainable are not only performing well but outpacing conventional goods in growth, proving their value for consumers and the bottom line alike.”
CPG products marketed as sustainable in the U.S. have been steadily gaining market share, driving growth faster than conventionally marketed alternatives. However, the research reveals that current U.S. market performance falls significantly behind European counterparts studied. The gap highlights immense potential for innovation and investment in sustainable offerings to align with evolving consumer preferences.
“We continue to see sustainable products outpace the growth of conventional, with veteran brands adopting sustainable claims on legacy products and driving category shifts,” said Randi Kronthal-Sacco, senior scholar at the NYU Stern CSB, who leads the research initiative. “We are encouraged to see that even with continued inflation, price premiums remain stable and sustainable products continue to eat into the market share of conventional products. We are also thrilled to finally bring the research methodology to Europe, where we see the U.K. and German market share dwarf that of the U.S.”
The study underscores the advantages of capitalizing on sustainability-marketed products, which are proven drivers of value. Findings show that these products have enjoyed faster growth rates and higher price premiums, while also fostering stronger consumer loyalty. For U.S. retailers and manufacturers, bridging the sustainability gap offers a route to expanded market share and long-term profitability.
To learn more actionable insights on sustainable product growth, download the Sustainability: The CPG Growth Opportunity research report.
Register for Webinar
Circana and NYU Stern CSB will present key findings from the report in a co-hosted webinar on May 28 at 2 p.m. CT. Randi Kronthal-Sacco and Joan Driggs will cover how sales of sustainable products compare to conventional products, what the price premium is for sustainable products, and what the U.S. can learn about sustainability from other geographies. Register here for the “Sustainability’s CPG Growth Opportunity” webinar.
About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy. Learn more at circana.com.
About NYU Stern Center for Sustainable Business
The NYU Stern Center for Sustainable Business (CSB) was founded on the principle that sustainable business is good business. We provide education, conduct research, and influence industry practice by proving the financial value of sustainability for business management and performance. At CSB, we aim to equip future and current corporate leaders with updated business frameworks that embrace proactive and innovative mainstreaming of sustainability, resulting in competitive advantage and resiliency for their companies as well as a positive impact for society. The Sustainable Market Share Index is an annual research initiative to analyze the purchasing behaviors for consumer packaged goods marketed as sustainable.
Learn more at stern.nyu.edu/sustainability or follow us on LinkedIn @NYU Stern Center for Sustainable Business and Twitter @NYUSternCSB.
CONTACT: Shelley Hughes Circana +1 312-731-1782 Shelley.Hughes@Circana.com
