Consumer expectations are shifting rapidly alongside this market expansion. The study found that 85% of consumers believe it is important that name-brand product manufacturers practice sustainability, representing a five-point increase from the previous year. Younger generations routinely factor sustainability into their brand evaluations, signaling a lasting generational shift in purchasing decisions.

Despite financial pressures, consumers continue to value sustainability and are willing to pay an average 9% premium for sustainability features. With current market premiums still higher on average, this gap presents an opportunity for brands to unlock growth by aligning sustainability with clear consumer value.

"Consumers increasingly view 'healthy for me' and 'healthy for the planet' as intertwined outcomes, driving a stronger preference for products that signal both," Lauren Hazenfield, principal of CPG thought leadership advisory at Circana, said in a statement. "Brands that deliver clear, personally relevant sustainability benefits are successfully driving consumer value."

"The continued expansion of sustainability-marketed products, now capturing over a quarter of the market, demonstrates that sustainability is a proven engine for resilient growth," Randi Kronthal-Sacco, senior scholar at the NYU Stern Center for Sustainable Business, said in a statement. "Despite economic uncertainty, these products are expanding at more than five times the rate of conventional alternatives, proving that consumers are actively voting with their wallets for sustainable choices."