This article was written by Inga Klebanskaja, Senior Consultant – Sustainability. The original article was published by Euromonitor International. You can find the article here. 

Sustainability has been at the centre of global discussions for nearly a decade, yet it often feels like the world is waiting for it to fail. However, the notion that sustainability is failing is misleading.

From 2020 to 2023, sustainable products outpaced non-sustainable ones in retail value sales by one percentage point

^{Source: Euromonitor’s Sustainability Claims Tracker} 

Looking back at the trajectory of sustainability efforts over the years, it is clear that, despite setbacks, the movement continues to evolve rather than disappear.

The rise and challenges of sustainability commitments

The 2015 Paris Climate Accord spurred companies to set ambitious sustainability targets, with many committing to Science-Based Targets (SBTs) between 2016 and 2017, often with unrealistic deadlines. By 2018, investors emphasised environmental, social, and governance (ESG) factors, while public awareness surged in 2019, driven by figures like Greta Thunberg.

However, the COVID-19 pandemic in 2020 shifted focus away from sustainability, though governments, particularly in the EU, reinforced commitments through initiatives like the European Green Deal. Yet, challenges such as the war in Ukraine in 2022 and ongoing inflation in 2023-2024 raised concerns about companies scaling back on green initiatives.

The Evolution of Sustainability – Euromonitor.com

Consumer and corporate perspectives on sustainability

Consumer sentiment towards sustainability has been fluctuating. Data from Euromonitor’s Voice of the Consumer: Sustainability surveys show a decline in green behaviours, with recycling rates dropping from 57% in 2022 to 50% in 2024 globally. Similarly, the percentage of people feeling good about purchasing sustainable goods decreased from 26% in 2022 to 22% in 2024. Yet, the story is more complex than a simple abandonment of sustainability.

Meanwhile, corporations remain committed, with more than 70% viewing climate action as critical and approximately 60% having sustainability strategies. However, only 10% believe they communicate these efforts effectively to consumers, creating a gap between perception and reality. Products with sustainability claims continue to outperform others, proving that sustainability succeeds when it enhances product value rather than serving as a marketing label.

The role of innovation in sustainability

One of the most effective ways for companies to maintain their sustainability commitments without overwhelming consumers is through innovation.

Over 26,000 new FMCG products carrying at least one sustainability claim were launched globally in 2024, highlighting the industry’s commitment to integrating sustainability into product development

^{Source: Euromonitor’s Innovation NPD Tracker}

Sustainable packaging, for instance, has become a major focus in Europe due to upcoming regulations requiring more circular approaches. Many brands now prioritise materials such as recycled plastics, compostable packaging, and Forest Stewardship Council (FSC) certified paper. From laundry detergent sheets by Procter & Gamble to recyclable paper-based alcoholic drinks bottles from Pernod Ricard, these innovations demonstrate how sustainability can be embedded in product design rather than positioned as an external virtue signal.

The impact of political shifts on sustainability

As global sustainability efforts continue to evolve, political shifts can significantly influence their trajectory. The impact of Donald Trump’s return to the US presidency in 2025 on sustainability is still unfolding, with significant uncertainties ahead. Early moves suggest a roll-back of Biden-era climate policies, including efforts to weaken federal incentives for renewable energy and electric vehicles. The administration has also signalled a renewed focus on expanding domestic oil and gas production, raising concerns about the future of US climate commitments. While Trump has hinted at withdrawing from the Paris Agreement again, it remains unclear how quickly or extensively such actions will take place.

However, sustainability is no longer solely dependent on governmental mandates. Corporations and investors increasingly view sustainability as a strategic business imperative, ensuring its continuation regardless of political leadership. Many states, cities, and multinational companies in the US have maintained their sustainability commitments, even during Trump’s first term, suggesting that while federal policies may shift, the broader movement is unlikely to be abandoned.

Conclusion: A new phase of sustainability

The idea that sustainability is failing is misleading. What we are witnessing is a transformation in how sustainability is approached. Consumers are not abandoning sustainability – they are becoming more selective about how it fits into their daily lives, which reflects the Eco Logical trend for 2025. Companies are moving away from grand promises and focusing on actionable, tangible sustainability initiatives. As a result, sustainability is shifting from a buzzword to an integrated part of business and consumer choices.

Rather than the end of sustainability, we are entering a new phase – one where it is seamlessly incorporated into products, operations, and policies. The challenge now is not about proving the importance of sustainability but about making it practical, accessible, and effective for all stakeholders.