In today's unpredictable business environment, marked by geopolitical instability, disrupted supply chains and rising costs, companies often shift to a short-term survival mindset, sidelining sustainability. However, it's vital not to overlook long-term strategic planning where creating sustainable value that endures, adapts and grows even amid volatility is key.
According to Euromonitor’s Voice of the Consumer: Sustainability Survey, fielded January-February 2025, 61% of global consumers try to positively impact the environment through actions. Euromonitor's Sustainability Claims Tracker also reveals that in 20 of the 25 markets tracked, per capita spending on sustainable products experienced double-digit growth over 2020-2023. This highlights the importance of sustainable value creation. This approach, which involves generating long-term value for all stakeholders, helps businesses differentiate, while mitigating risks and building resilience, enhancing their competitiveness.
Sustainability as a catalyst for differentiation and profitability
Sustainability can enhance products’ value proposition and open new revenue streams, when complementing other key purchasing factors like taste, quality and performance.
Sustainability can be strategically leveraged across the portfolio, when carrying proven claims. It allows commoditised products to stand out from the similarly priced crowd, resonating with 40% of consumers blaming higher price as the barrier to sustainable purchases. It can also help substantiate premium offerings, as four of the 11 industries tracked in the Sustainability Claims Tracker saw all sustainability attribute groups commanding price premiums in 2023. Providing the right substantiation depending on the price segment, category and market is essential to transparently differentiate.
Sustainability and profitability are not necessarily mutually exclusive. Per the Sustainability Claims Tracker, sustainable products outperformed their non-sustainable counterparts in global retail sales in 2020-2023. This trend is particularly significant in emerging markets mainly due to stronger economic growth and increasing disposable income.
Mitigating risks and reducing costs and emissions
Companies that blend sustainability into their strategy are better prepared to minimise unpredictable risks, costs and emissions. As companies rethink their supply chains, focusing on sustainable value creation can also improve their sustainability communication and open new opportunities.
For instance, as companies innovate product formulations and diversify supply chains, they can choose raw materials nearer manufacturing sites and select suppliers that operate sustainably. This can enhance sustainability communication through “locally sourced” and “reduced carbon” claims. Similarly, technology investment focused on energy-efficient operations can protect businesses from fluctuating energy costs and, at scale, deliver affordable sustainability that resonates with price-sensitive consumers.
Per Euromonitor’s Macro Model, if Trump’s entire agenda on tariffs, taxes and immigration is effected, it could slow global growth by 0.6-1.3pp and raise global inflation by 1.3-1.8pp compared to the baseline in 2025-2026. Trump's policies are making companies pass on costs to consumers; so, given the uncertain global situation, while making a profit in the short term is crucial, businesses must also focus on staying competitive in the long term, when sustainability will become even more important.
Sustainable value creation: Key to resilience and competitive strength
In today’s volatile market, sustainability is a crucial strategy to build resilience and gain a competitive edge. Recent political actions, including support for fossil fuels, curbing clean economy initiatives, deportation policies, and anti-diversity and inclusion legislation, are hindering environmental and social progress, highlighting the need to overcome present and future disruptions.
Businesses that uphold their purpose and values, even amid geopolitical shifts, are better positioned to withstand stricter upcoming legislation and climate change risks. They can also strengthen their reputation, attract top talent and reduce turnover.
71% of global companies feel pressure for corporate climate action from the board, and 72% from governments
Source: Euromonitor Voice of the Industry Survey, fielded April 2025 (n=145)
For example, the EU’s Omnibus regulation aims to streamline sustainability reporting by consolidating the Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and EU Taxonomy. Though the regulation delays mandatory reporting for large companies until 2028, businesses should continue accurately assessing their environmental impact, setting clear sustainability goals, engaging stakeholders, implementing technological advancements for resource optimisation, and tracking progress, avoiding potential reputational and financial setbacks of non-compliance.
As supply chains are restructured, companies have a unique opportunity to thrive with purpose. By championing sustainability regulations in emerging manufacturing hubs such as India, Vietnam and Indonesia, businesses can help shape more sustainable industries and differentiate by boosting a positive impact.
Learn more about our data-driven solutions on our Sustainability page. Read Sustainable Packaging Opportunities: Meeting Demand, Ensuring Compliance and Innovation in Sustainability for more actionable insights.