Why Sustainable Sourcing is a Procurement Priority

In 2025, sustainability remained a decisive factor influencing product development strategies and consumer behaviour across global markets.

According to Euromonitor, 60% of all new products launched globally in 2025 carried at least one sustainability claim. This highlights the growing necessity for brands to integrate environmental considerations into their offerings.

The Voice of the Consumer report details a significant rise in sustainable product labelling as buyers continued to seek purchasing options that were both affordable and sustainable.

The report reveals that the primary obstacles preventing sustainable purchasing were higher prices (40%), unclear labelling (27%) and uncertainty regarding which claims to trust (25%).

Retailers increasingly embedded sustainability into their core value propositions. Rather than treating environmental credentials as an optional add-on, businesses approached them as complementary features alongside traditional purchase drivers such as flavour, quality and performance.

This strategic shift could help build trust with consumers by establishing credible claims and facilitating effortless sustainable shopping. The survey data shows that the most trusted product claims in 2025 were recyclable (57%), locally sourced (55%) and natural (54%).

Value in responsible sourcing

The report identifies distinct consumer profiles, including the ‘Green Spender’. Accounting for approximately 25% of consumers, this group indicated a willingness to pay a premium for items that delivered on quality and purpose.

To succeed in this area, Euromonitor suggests companies should communicate measurable supply chain benefits validated by third parties.

All sustainability, net zero and sustainable procurement leaders should attend:

• Procurement & Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
   
• Procurement & Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CPOs, CSCO, CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Estée Lauder serves as a prime example of a company finding value in constructing a responsible supply chain. Its approach involved sourcing high-quality materials and ingredients while strictly monitoring potential impacts on people and the environment.

In the company’s 2025 report, Nancy Mahon, Chief Sustainability Officer at The Estée Lauder Companies, says: “Guided by the values of our customers, we are committed to creating meaningful, long-term value as we work toward becoming the world’s most consumer-centric prestige beauty company.

“Despite industry-wide challenges, we continued to progress toward our packaging goals, including our ‘5Rs’, while improving our FSC-certified material usage year-over-year and working to restore and exceed past levels.”

Nancy adds: “Looking ahead, I am inspired by the opportunities to deepen our impact, contribute meaningfully to the communities we serve and drive long-term, sustainable growth.”

Driving circular economy growth

Another key demographic identified was the ‘Zero Waster’, representing 25% of the consumer base. These individuals shared a strong drive to reduce waste, with younger generations expecting brands to assist them in repair, reuse or recycling efforts.

Euromonitor notes that businesses should ensure packaging is easy to recycle, provide refill packs and support resale initiatives.

Adopting these circular strategies allows brands to deepen consumer engagement while tackling waste. By offering tangible solutions like refill stations, companies can empower the Zero Waster demographic to make impactful choices without compromising on convenience.

L’Oréal championed circularity within its product design by developing refillable options intended to transform the beauty sector. The brand offered at-home refills including pods, pouches and bottles for essentials such as shampoos and serums.

Ezgi Barcenas, Global Chief Corporate Responsibility Officer at L’Oréal, said on LinkedIn: “L’Oréal is taking action to make refills the new norm with our multi-brand campaign to encourage consumers to embrace refills.

“As the global beauty leader, we have an opportunity, as well as a responsibility to create more circular solutions, raise awareness and set a new industry standard – with clear intention and action.”

Transparency in product labelling

The most prominent consumer type identified by Euromonitor was the ‘Naturalist’, comprising 30% of the global consumer base. These buyers prioritised simplicity and transparency regarding product labelling.

The report recommends that organisations use plain claims on labels to outline specific benefits, thereby building loyalty through authenticity.

Unilever worked towards this by redesigning packaging for easier recycling, notably with its Vaseline bottles in North America. The company deployed a recyclable pump on its Intensive Care lotions to meet its goal of ensuring 100% of its rigid plastic packaging is reusable, recyclable or compostable by 2030.

Kristina Friedman, Head of Sustainability at Unilever North America, says: “Unilever’s long-term ambition is an end to plastic pollution through reduction, circulation and collaboration.

“We continue to implement bold innovations across our brands and markets that help to advance the delivery of our sustainability goals.”

Kristina concludes that “Vaseline designing its pumps for recycling is another step in the right direction.”

Kristina Friedman, Head of Sustainability at Unilever North America, says: “Unilever’s long-term ambition is an end to plastic pollution through reduction, circulation and collaboration.

“We continue to implement bold innovations across our brands and markets that help to advance the delivery of our sustainability goals.”

Kristina concludes that “Vaseline designing its pumps for recycling is another step in the right direction.”