Circana and New York University’s Stern Center for Sustainable Business (CSB) recently released the 2025 Sustainable Market Share Index™, a joint report on the evolving role of sustainability across the U.S. CPG landscape and in consumer decision-making. This year’s study, “Inside the Consumer Mindset,” shows that 85% of consumers believe it is important for brands to practice sustainability, and 74% are more likely to buy from companies that prioritize it. Underscoring the long-term implications of these sentiments, the research reveals that younger Gen Z and millennial consumers are driving these trends and making sustainability an expectation instead of a differentiator. 

If a strong majority of people want companies to practice sustainability, many are also acting on what they espouse. Sustainability-marketed products are growing 4.9 times faster than conventionally marketed products, contributing nearly half of all CPG growth since 2013, despite representing only 25.4% of the market. In 2025, the sustainable share of consumer packaged goods increased by 1.6 percentage points, marking the third-largest annual increase in the past 13 years. 

While consumer commitments and market share are expanding, sustainability is evolving, too. The report highlights several shifts with implications for brands and retailers.

Differing drivers

The term “sustainability” doesn’t mean the same thing to everyone, and there are some generational differences in priorities. For instance, while older consumers, including boomers, over-index on traditional environmental issues such as air pollution, water pollution, and food waste, younger Gen Z consumers over-index on concerns like climate change, biodiversity loss, and global warming. Consumers also link sustainability with ingredient sourcing.

Better for You, Better for the Planet

Sustainability is often tied to consumers’ own well-being, the Circana/CSB research indicates. A majority of respondents in the study said that sustainable products are either healthier or safer for them, indicating that personal health and environmental health are intertwined. 

Categories Worth Watching

Although sustainability impacts almost all categories, the research points to areas of particular importance. This year’s findings show that sustainability carries the greatest weight in home care and fresh categories, especially in produce, meat, and dairy. In contrast, sustainability plays a comparatively smaller role in categories like snacks, which are often viewed more as occasional treats than daily staples

A Direct Route to Like-Minded Retailers

About a third of consumers say they actively seek out retailers that carry sustainable products. Shoppers also reported that they have a more positive view of a retailers’ commitment to sustainability if that store offers a larger sustainable product assortment. At the same time, store brands are emerging as trusted options, offering an opportunity for retailers to lead in this space through clear labeling, ethical sourcing, and sustainable packaging.

Lingering Barriers to Sustainable Purchases

Consumers clearly value sustainability but translating that intent into purchase can be harder to achieve for some shoppers. Price remains the top barrier: consumers report being willing to pay 9% on average for sustainability features, though actual market premiums are often much higher. Brands can bridge this gap by emphasizing other tangible benefits like health, safety, and quality, which resonate most with shoppers.

Watch this webinar to learn more about Circana’s CPG sustainability research with CSB, and its implications for industry stakeholders. To learn about Circana’s own commitment to sustainability, download our most recent corporate sustainability report.