Research / 29 MAR 2023

On-Pack Claims That Actually Move Revenue: The NielsenIQ Breakdown

Which sustainability claims on packaging are correlated with the largest revenue growth

NielsenIQ’s analysis of growth across more than 30 US product categories produces a clean finding: products with ESG-related on-pack claims grew at a 6.4% CAGR between 2018 and 2022, versus 4.7% for products without such claims. The difference is 1.7 percentage points annually, or 8.1 percentage points cumulatively over five years.

That is the aggregate signal. The more useful signal is the breakdown by claim type and category.

Animal welfare claims are the highest growth drivers across total store (+43% over 3 years), despite being less prevalent than other claim types. The combination of high impact and low frequency represents an uncrowded positioning opportunity in most categories.

Environmental sustainability claims (recycled content, sustainable sourcing, renewable energy) show +28% total store growth: strong, but broadly deployed, which means differentiation through these claims is increasingly competitive.

Social responsibility claims show the widest variance by category: +1% in Household Care but +84% in Vitamins/OTC and +156% in Pet Care. The category fit of the claim type is the determining variable, not the claim strength in isolation.

Sustainable packaging claims show consistent growth across categories (+26% total store) and spike particularly in Pet Care (+81%) and Vitamins (+31%).

The specific on-pack claims correlating with the highest growth rates are: Regenerative Agriculture, Plastic Free, Cruelty Free, Water Footprint, and Renewable Energy. These claims are currently concentrated in fewer categories than high-volume claims like Eco Friendly Certified or Organic, which means the growth advantage of the more specific claims is still available.

The NielsenIQ data does not prove causality: claims may correlate with revenue growth because brands investing in sustainability programs are also investing in marketing, distribution, and innovation. But the correlation is consistent enough, across five years and 30 categories, to make claim strategy a commercial decision rather than a reputational one.

Pillar  Perception moves capital. Measure it.

← Back to Catalyst