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.