As awareness of human impact on the environment grows, more consumers are seeking out sustainable products and brands. A recent study found that 81% of global consumers believe companies should help improve the environment.
This shift has increased demand for sustainable products, prompting companies to adopt eco-friendly practices, from using sustainable materials to reducing waste and carbon emissions. Anthony Saniger, the founder of Act Second, says, "brands that are not built on a foundation of sustainable practices will fail."
In the beauty industry, consumers are looking for eco-friendly products made with natural ingredients. According to Grand View Research, the global natural and organic personal care market is projected to reach $25.1 billion by 2025. Brands like Aesop have led the way with vegan ingredients obtained via their Ethical Sourcing Programme, which ensures that suppliers provide safe working conditions and operate to the highest eco-conscious standards. The brand also aims to achieve net zero greenhouse emissions by 2030 and uses renewable energy to power its ultra-sophisticated stores and offices globally.
A key area of focus is reducing plastic waste. The beauty industry produced 142 billion units of packaging in 2018, much of which ends up in landfills or oceans. Brands are responding with refillable and reusable packaging and eliminating single-use plastics. Our client Goodnest, with launches at Target, is innovating in categories like Baby & Kids with their refillable silicone bottles and tablets that reduce water waste.
"brands that are not built on a foundation of sustainable practices will fail."
-Anthony Saniger
The shift towards sustainability in the beauty industry is driven by consumer demand for transparency and ethical practices. Companies that prioritize sustainability will be well-positioned for future success.
Sustainability is also growing in the fashion industry, with the resale market projected to reach $64 billion by 2024. Brands like Patagonia and Reformation use recycled and organic materials and implement closed-loop production processes.
In the food industry, there is increasing interest in plant-based and sustainably sourced options. A Nielsen survey found that 73% of global consumers are willing to change their consumption habits to reduce environmental impact, with 41%willing to pay more for sustainable products.
Major retailers like Walmart, Target, and Ikea are committing to sustainability by reducing waste, using renewable energy, and sourcing sustainable products.
However, as consumers become more knowledgeable, they are scrutinizing brands' actual environmental impact and are wary of greenwashing. If you are going to build a brand you must be authentic.
As the trend towards sustainability grows, consumers are using their purchasing power to support environmentally conscious brands. Companies that do not adapt risk being left behind. The future belongs to those who prioritize sustainability and embrace changing consumer preferences.
