CPG Companies: Combine Health and Sustainability for Growth
Leaning into the crossover of health and sustainability could help CPG brands stand out.
The sustainability movement is in a tricky spot. A rightward shift in politics is de-emphasizing environmental and social progress goals. Higher prices continue to pinch budgets. New technologies like generative AI are taking up executives' attention.
Indeed, recent Bain research finds that global CEOs' prioritization of sustainability has quickly fallen, with "disruptive technology, growth, inflation, and geopolitical uncertainty" sitting atop their agendas.
Thus, Bain explains, many sustainability efforts are in what's known as the "trough of disillusionment" from the Gartner Hype Cycle.
That basically means some of the initial hype has died down, and there's "a realization that the transformation will not be as quick or as easy as expected. At this point, it’s common for stakeholders to rethink their approach," writes Bain.
But to retreat from sustainability efforts would be a mistake for many brands. The trough of disillusionment is followed by the "slope of enlightenment," when more begin understanding the benefits of the technology (or in this case sustainability efforts) and some new initiatives emerge, without the inflated initial hype.
One way to break through, especially in the CPG environment, is to more clearly link health and sustainability.
Why Combine Health and Sustainability?
While it's not uncommon to see CPG brands talk about both personal and planetary health, creating tighter links could be valuable to companies trying to stand out in a crowded consumer packaged goods market.
SPINS research shows that the top shopper preference that will have staying power over the next few years is the shift from lifespan to healthspan, meaning a high quality of health over many years, not just living a long life. Meanwhile, sustainability will be considered "table stakes" and is a "secondary driver in CPG purchases."
In other words, trying to promote sustainable practices may not be enough. Yet if you're only focusing on healthy living, such as with the inclusion of adaptogens or high-protein formulations, without also implementing sustainability practices, you could be leaving money on the table.
As Bain's research also found, amidst CEO deprioritization of sustainability, about 60% of consumers say their climate concerns have increased over the past two years. So it's not as if this issue is going away for most buyers.
Meanwhile, Bain survey respondents said they'd pay 10% more for products that have minimal environmental impact and 15% more for healthy products.
So if you can combine both, you can potentially capture a larger market share while earning a premium.
What Does Linking Sustainable Practices and Health Benefits Look Like?
Healthy living/healthy planet might sound good together, but what does linking these areas actually look like? You can't be a health brand that just starts claiming to be committed to responsible sourcing (without verifiable, continuous improvement) or make wishy-washy statements about ingredients that fight climate change while having a positive impact on your body.
However, CPG brands can potentially lean into certain sustainability initiatives that also signal health benefits to consumers.
For example, using certified regenerative ingredients is on the rise, according to SPINS. Those who are familiar with regenerative agriculture are also likely familiar with some of the research on how this more sustainable agriculture approach can improve nutrient density, thereby making healthier products.
"The abandonment of traditional farming practices, which emphasized things like rotating crops, resulted in the depletion of nutrients in the soil. Over time, this eventually reduced the nutritional qualities of certain foods, since many nutrients are absorbed from the soil, and for those that are not, there are still effects on the plants’ biochemistry in forming the nutrients within them. In other words, when the plants are not given the right conditions, they do not form as optimally as they should," says Dr. Bryan Quoc Le, a food scientist, food engineer, food industry consultant, and author of the book 150 Food Science Questions Answered.
"Practices that encourage soil sustainability, such as regenerative agriculture, would be a partial return to the traditional practices, while incorporating advancements in the agricultural and environmental sciences in order to supply the demands of the world population. These changes, in turn, would improve the nutritional qualities of foods and likely bring positive health effects when compared to many current crops," he adds.
Distilling all this into taglines isn't easy, but CPG brands can work with industry groups or non-profits to promote broader awareness, while also doing some light education through their own channels.
Consider SIMPLi, a brand of pantry staples that specializes in sustainable sourcing and clearly highlights the benefits of regenerative, such as with a dedicated section on its website.
Another option could be to add nutrients or functional ingredients to sustainable food and beverages to more directly tap into health trends; SPINS identified areas like healthy aging and weight management as some of the top health trends for 2025.
Convincing consumers to switch from, say, a beef burger to a plant-based patty based on lower greenhouse gas emissions can be limiting, but perhaps formulating ones that leave you feeling full for longer could help. Still, making these types of changes can be risky, so consider what's likely to have staying power rather than hopping from trend to trend.
"There certainly is opportunity for food manufacturers to fortify their foods to increase the appeal to consumers, but oftentimes it is avoided due to either increased formulation costs, negative effects on the final product, such as in flavor, color, and texture, or nutrient degradation over time," says Quoc Le.
So, adding well-known nutrients could make sense, but trying to go too niche in terms of fortification might not be worth the risk, he adds.
But not all CPG brands have to be at the forefront of championing personal and environmental health. A subtle approach can work as well.
Take mainelove, a new beverage brand, which centers its messaging largely around enjoying nature and the state of Maine, such as with simple, sustainable packaging (at least in terms of canned vs. plastic) that clearly states what the product is.
"I think healthy living and sustainability are the thesis of Mainelove. Up in Maine, we like forests, freshwater, and oceans. We know our farmers, and we know where our water comes from. We want to take that feeling of being up in Maine out into the world for people to enjoy and trust," says Jennifer Millard, CEO and co-founder of Mainelove.
The brand is still in its infancy, but it's working on partnerships such as to sell its water in stadiums in Maine and beyond, with the hopes that the benefits of switching from single use plastics to cans is intuitive.
"We are going to let the aluminum speak for itself," says Millard.
Still, by subtly communicating its thesis, Mainelove could potentially stand out from other beverages that might use plastic alternatives but not necessarily evoke the same feelings of nature and freshness. Water is also inherently healthier than sugar-laden canned beverages.
Standing Out in the CPG Industry
In 2025, environmental sustainability efforts will likely continue to face some headwinds, but that doesn't mean CPG brands should back off. Consumer demand for environmentally friendly companies remains strong and if you can connect promoting sustainability with supporting consumers' health, your company may find a larger lane for itself.
For some brands, being highly vocal about implementing sustainable practices in your supply chain, with your packaging materials, the use of renewable energy, etc., can pay off, while for others a more nuanced approach can work, as long as that's underpinned by authentic brand values.
Lastly, keep in mind that the ties don't always have to be perfectly connected. For example, reducing your company's carbon footprint doesn't directly make a beverage healthier. But if a consumer cares about what they're putting into their body, they're probably more likely to support a brand that cares about what it's putting into the atmosphere that we all share.
However, if the ties are somewhat indirect like this, CPG brands likely do need to be more vocal about how they're supporting both the environment and consumers' health.
Disclosure: Our parent company, JournoContent LLC, has clients involved in sustainability-related areas, among others. The owner of Carbon Neutral Copy, Jacob (Jake) Safane, has investments in AI and sustainability-related companies, among others.
As such, conflicts of interest related to these and other investments/business relationships, even if unintended, may exist at times. Please email info@carbonneutralcopy.com if you'd like further clarification on any issues.