Retailers aren’t just passively nodding at sustainability - they’re demanding it. In 2025, sustainability has graduated from a nice-to-have to a business imperative for CPG brands. But what are retailers actually looking for? Let’s unpack the game-changing trends that will determine shelf presence, differentiation, and growth.
Private-label sustainability drives retailer differentiation
Retailers are increasingly leaning on premium organic and eco-friendly private-label CPG lines to stand out, especially in Europe, where private labels account for about 39% market share in the EU6 region compared to roughly 22% in the U.S. (Circana). These labels not only meet the demand for sustainable options but also build loyalty through retailer-owned brand equity.
Sustainable packaging: recyclable, refillable, transparent
Retailers want packaging that checks all the boxes: recyclable materials, refillable solutions, and clarity. Consumers overwhelmingly favor sustainable packaging - 79% prefer it, with 63% avoiding harmful materials (Meyers). Gen Z is leading the way, with 82% willing to pay more for sustainable packaging and 80% seeking refillable options (PRNewswire). Retailers are responding by prioritizing brands that deliver on these features.
Performance tracking through sustainability analytics and ESG compliance
Brands that can back their sustainability claims with credible data have a distinct advantage. Retailers value measurable progress, and sustainability tracking can be a powerful differentiator. In one case, a cleaning brand gained shelf space and saw an estimated 180% ROI within 8–12 months by leveraging ESG-driven analytics (37Oaks, SRAnalytics). Predictive AI, inventory optimization, and compliance tracking are quickly becoming standard expectations.
Tech solutions for transparency and smart packaging
Retailers are starting to embrace advanced transparency systems such as digital product passports (DPPs). While these have gained attention in the fashion industry, the concept has potential for CPG brands to provide verifiable, end-to-end supply chain data. DPPs will be mandatory in the EU by 2030, and forward-thinking CPG companies can use them to build consumer trust well ahead of deadlines (VogueBusiness).
Authenticity and longevity over greenwashing
Retailers are becoming increasingly skeptical of brands that overpromise and underdeliver on sustainability. The emphasis is on authenticity, consistency, and long-term commitment rather than one-off initiatives. Companies that can show steady, measurable improvement are more likely to retain shelf space and build enduring relationships with retail partners.
In 2025, retailers want more than lip service—they want proof, performance, and purpose from CPG brands. Whether through private-label innovation, packaging that supports the circular economy, analytics-driven transparency, or early adoption of traceability technology, sustainability has become the filter through which brands are evaluated. Be real, be measurable, and you’ll earn not only shelf space but also shelf reputation.
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