Despite delayed corporate pledges and shifting political winds, the sustainability agenda remains crucial for businesses aiming to stay compliant, competitive, and consumer-relevant.
The business case for sustainability in uncertain times
According to a recent analysis by Jorge Zuniga, 2025 has begun with significant challenges to sustainability initiatives. Rising geopolitical tensions and a rightward shift in politics have encouraged many FMCG companies to postpone their sustainability pledges in favour of short-term strategies.
However, for compliance managers and executives responsible for product safety and regulatory alignment, ignoring sustainability is increasingly risky. The global climate crisis continues to escalate, and scrutiny from both regulators and consumers is intensifying.
Companies that shy away from sustainability initiatives risk losing ground to competitors who are capitalising on what was a USD774.6 billion sustainability market in 2023. Euromonitor's data reveals that sustainable products grew 1.1 percentage points faster than their unsustainable counterparts in retail sales CAGR from 2020 to 2023.
Three pivotal trends for 2025
For product compliance professionals, understanding these three key trends identified by Euromonitor International is essential for maintaining market access and competitive advantage:
1. Sustainability resilience amidst political shifts
The sustainability agenda is inextricably linked to the political landscape, with regulatory developments serving as primary catalysts for corporate action. According to Euromonitor's Voice of the Industry Survey 2024, 71% of global companies are experiencing governmental pressure to undertake climate initiatives.
Political fluctuations can disrupt sustainability agendas, as exemplified by the second Trump administration's policies, including the US withdrawal from the Paris Agreement and plans to boost fossil fuel production. These developments are prompting many US companies to adopt short-term strategies at the expense of longer-term sustainability progress.
Nevertheless, the surge in regulations continues unabated in many markets:
- The EU Green Claims Directive
- Packaging and Packaging Waste Regulation
- Global adoption of Extended Producer Responsibility laws
- Deposit Return Schemes
- Plastic Pacts
- Laws enforcing sustainable sourcing and supply management
For compliance managers, navigating these short-term challenges while maintaining awareness of long-term regulatory trends is crucial to avoid penalties and reputational damage.
2. Leveraging sustainability to complement a product's value proposition
In 2025's environment of economic uncertainty and intense price competition, brand differentiation has become exceptionally challenging. Strategic implementation of sustainability features can help brands outperform their competitors by appealing to the 62% of global consumers who, according to Euromonitor's research, are concerned about climate change and strive to have a positive environmental impact through everyday actions.
While consumer preferences for food and beverage products are primarily driven by price, nutrition, and taste (with lower prices seeing the largest increase from 2024 to 2025), sustainability features remain important. Consumers increasingly desire "natural" claims and organic products, which saw the second-largest growth in consumer interest.
Importantly, generic sustainability claims like "eco-friendly" are losing traction with increasingly savvy consumers who demand reliable proof of products' sustainability credentials. For compliance managers, this means ensuring that sustainability claims are specific, verifiable, and aligned with evolving regulations around greenwashing.
3. Transparency and accountability are now mandatory
Today's informed consumers are increasingly sceptical of corporate communication about sustainability. Transparency and accountability have become essential requirements for attracting and retaining customers who want to know the complete story of the products they purchase, from sourcing to disposal.
Global per capita spend on sustainable products rose 23% over 2020-2023, with 24 out of 25 markets showing growth, according to Euromonitor International's Sustainability Claims Tracker. This trend puts FMCG companies under pressure to provide transparent and readily accessible information about their supply chains and environmental impact.
Technologies such as blockchain and QR codes are enabling the sharing of real-time, trustworthy product data. This development aligns with the EU's Digital Product Passport, which is expected to become mandatory for fast-moving consumer goods (FMCG) products by 2026.
Steps for compliance managers to take now
To navigate these trends successfully and maintain market access, product compliance managers should:
- Monitor regulatory developments across all markets where your products are sold, with particular attention to sustainability-related regulations
- Audit current sustainability claims against evolving standards and regulations to avoid greenwashing allegations
- Prepare for transparency requirements by implementing systems to track and verify sustainability data throughout your supply chain
- Consider how technologies like blockchain and QR codes can support compliance with upcoming digital product passport requirements
- Collaborate with suppliers and partners to ensure efficient data sharing within your supply chain
- Review product portfolios to identify opportunities for enhancing sustainability features that complement existing value propositions
- Develop a resilient sustainability strategy that can withstand political shifts while meeting core regulatory requirements
Staying ahead of the curve
Despite political uncertainty and economic pressures, the sustainability agenda continues to advance through regulatory mechanisms and consumer demand. Companies that proactively address these trends will be better positioned to maintain compliance, build consumer trust, and create competitive advantage.
For manufacturing and trading companies, understanding the interconnections between sustainability, regulation, and consumer preferences is no longer optional—it's essential for long-term success and market access.
At Alura Group, we're committed to helping our clients navigate these complex sustainability challenges. Contact us today to ensure your product compliance strategy is aligned with the evolving sustainability landscape of 2025.
Source: https://www.euromonitor.com/article/key-trends-shaping-the-sustainability-agenda-in-2025
