The 2024 Sustainable Market Share Index (SMSI), an annual research initiative at the NYU Stern Center for Sustainable Business (CSB) in partnership with Circana LLC, shows consumer packaged goods (CPG) products with sustainable attributes marketed on the package enjoy 23.8% market share, up from 21.2% in the previous year. For the first time, CSB also conducted the methodology on two European markets, the United Kingdom and Germany, to find a significantly higher market share in both countries.

Key findings include:
- In 2024, the United States’ market share of sustainable products was 23.8% (excludes private label/store brand purchases). The share of sustainable products and private label products are both steadily increasing at the expense of conventional products.
- The UK and German sustainable markets largely outweigh the US share. In the UK, sustainable products make up 36.8% of the market share, and in Germany, 42.0%.
- Market share of sustainable products in the US has increased by 9.2 percentage points since 2013.
- Products marketed as sustainable achieved a five-year CAGR of 12.4%, growing 2.3 times faster than conventionally marketed products and outpacing the total US market’s 6.8% CAGR.
- Nineteen of the 36 individual categories analyzed in the US have seen a +10 percent point increase in the sustainable market share since first analyzed in 2013.

Sustainable products in the US still enjoy a significant price premium, costing an average of 26.6% more than their conventional counterparts. However, the price premium has stabilized, largely unchanged throughout the recent inflationary period. Moreover, the average price premium across all categories is at or below 5% in the European markets studied.

“Sustainability isn’t just a trend; it’s a business imperative,” said Joan Driggs, vice president of content and thought leadership at Circana. “This research demonstrates that products marketed as sustainable are not only performing well but outpacing conventional goods in growth, proving their value for consumers and the bottom line alike.”

CPG products marketed as sustainable in the US have been steadily gaining market share, driving growth faster than conventionally marketed alternatives. However, the research reveals that current US market performance falls significantly behind European counterparts studied. The gap highlights immense potential for innovation and investment in sustainable offerings to align with evolving consumer preferences.

“We continue to see sustainable products outpace the growth of conventional, with veteran brands adopting sustainable claims on legacy products and driving category shifts,” said Randi Kronthal-Sacco, senior scholar at the NYU Stern CSB, who leads the research initiative. “We are encouraged to see that even with continued inflation, price premiums remain stable and sustainable products continue to eat into the market share of conventional products. We are also thrilled to finally bring the research methodology to Europe, where we see the U.K. and German market share dwarf that of the US” 

The study underscores the advantages of capitalizing on sustainability-marketed products, which are proven drivers of value. Findings show that these products have enjoyed faster growth rates and higher price premiums, while also fostering stronger consumer loyalty. For US retailers and manufacturers, bridging the sustainability gap offers a route to expanded market share and long-term profitability.

Download the Sustainability: The CPG Growth Opportunity research report.