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Unlocking Sustainability Opportunities in Consumer Health

7/26/2024
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Consumers’ increasing focus on health, performance, and transparency is driving businesses to rethink their product formulations, expanding sustainability communication beyond just vitamins and sports nutrition. In fact, sustainable products within the consumer health industry recorded an 8% value sales CAGR from 2020 to 2023, outperforming their non-sustainable counterparts.

Leveraging insights from the AI-powered Passport Sustainability platform, Euromonitor emphasises the need for businesses to adopt transparent sustainability measures. This crucial step not only aids in mitigating risks and adhering to regulations, but also capitalises on the growing consumer preference for sustainable products.

Here are some insights from Euromonitor’s Unlocking Sustainability Opportunities in Health and Beauty report.

Multipurpose demand paves the way for innovative cross-category solutions

Similar to beauty and personal care or packaged food, the consumer health sector’s sustainability push is primarily driven by consumer curiosity about product ingredients and compositions. The escalating consumer emphasis on holistic wellness, preventative health, and transparency in ingredients and production methods is boosting the performance of vitamins and dietary supplements, and sports nutrition. These categories are leading the market in terms of digital shelf presence, while over-the-counter (OTC) products show promising potential in terms of market penetration.

Sports nutrition is the fastest growing category, recording double-digit CAGR sales growth in 2020-2023

Source: Euromonitor International Claims Tracker

Consumers now prefer versatile products with a low environmental footprint that address both lifestyle and health issues, sparking innovative cross-category solutions. Consequently, product formulations are becoming vital in positioning core products across categories. Nestlé’s Garden of Life, for instance, has responded to this trend by expanding its sports nutrition range to include skin health, digestive health, and weight management, while maintaining no-GMO and USDA organic certifications.

The industry accelerates sustainable sourcing, but still needs to address packaging

In response to the consumer preference for safer and more natural ingredients, brands are capitalising on five key sustainability claims. These assertions are leading to product line expansions across all categories, with “Natural” being prominent in OTC, “Vegetarian” and “Vegan” in sports nutrition, “No-GMO” in vitamins and dietary supplements, and “Vegan” in weight management and wellness.

They are also prioritising transparency and sustainable sourcing, with these strategies representing three of the top five fastest growing claims, aiding brands in differentiating themselves and managing complex global supply chains.

Chart showing Top Five Sustainability Attributes: Fastest Growth 2020-2023

Yet, sustainable packaging remains a challenge in the industry, comprising just 1% globally, highlighting the need for more innovation and investment in this sector.

Consumer health sustainability examples

Balancing broad and specific, even certified, claims enhances transparency and accountability, regardless of a company’s size.

Take Sanofi as an example. It boasts B Corp certification at four facilities, and its US plant has made notable environmental progress, cutting greenhouse gas emissions by 77% since 2019 while fully utilising renewable energy for production and distribution.

Meanwhile, indie brands like Ancient Nutrition are focusing on sustainability in sourcing and packaging. It introduced organic Multi Collagen Advanced supplements in biodegradable packaging in 2024, promoting holistic wellness and regenerative agriculture.

Lastly, opportunities also lie in cross-industry innovation. For instance, the UK’s Beauty Kitchen launched a vegan, sustainably-sourced anti-ageing range of gummies and serums in 2024, aligning with wellness trends. These skin health-promoting products are backed by B Corp, vegan, and cruelty-free certifications and sustainable aluminium packaging.

Learn more about Sustainability in our report, Unlocking Sustainability Opportunities in Health and Beauty, and visit our Sustainability page for further insights on where to play and how to win with sustainable claims.

Latest Insights

Euromonitor’s Monthly Roundup: October 2024

Euromonitor International 08 October 2024

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