Nature as CEO: Navigating the challenges of brands in pursuit of sustainability

How can brands deliver during the cost-of-living crisis for eco-conscious consumers with limited purchasing power? WGSN has identified 'Nature as CEO' as one of the main trends to help brands tackle this dilemma and prioritise sustainability.

A study published by IBM in 2022 revealed that the importance of sustainability is growing for consumers. In the survey, 51% of consumers said it was more important today than a year ago. But it’s not just consumer desire that puts sustainability on the minds of brand leaders worldwide. Many brands understand the need to act to create a better future and their responsibility to do so, as well as the impact on their growth, as overconsumption and the exploitation of raw materials cause a shortage of resources and institutional support worldwide.

While sales of sustainably marketed consumer packaged goods have surged 2.7 times faster than conventional products, 64% of global consumers worry that brands only engage in sustainability for profit purposes. 

In times of crisis, sustainability tends to be less of a priority as the number of consumers who fall below the ‘green line’ increases (the ‘green line’ represents the financial condition that people feel they need to live in a genuinely sustainable way). Meanwhile, thinking about sustainability has gone from a luxury to a necessity.

Giving Nature a seat at the table

Every year, WGSN provides a proprietary forecast outlining the forces that will influence the world. The forecast addresses six macro drivers shaping all industry segments throughout the year. For 2025, one of the macro drivers will be Nature as CEO, where brands will respond to global warming and consumer demands by giving Nature a permanent seat in the boardroom.

With the next-generation materials industry expected to grow by 80% (CAGR) and with a turnover of around US$2.2 billion in the next five years (State of the Industry Report), one of the opportunities for innovation by having Nature as an honorary board member will be Biosynthetic Flows, where brands will be able to protect natural resources and reduce energy consumption costs by incorporating sustainability into all stages of the production chain.

One example is the Swedish skincare company Tiny Associates, which has developed an alternative to bisabolol (a skincare ingredient derived from the oil of the candlenut tree). This ingredient is created through a plant-based fermentation process that uses 230 times less agricultural land than its natural equivalent.

WGSN subscribers have access to the prominent trends that will impact the market in the coming years, so they can plan their strategies more assertively and prepare for different consumer nuances. To explore how ‘Nature as CEO’ and other significant drivers are affecting products and retail strategy, contact our team to request a demo and learn more about WGSN.