Once a trend, sustainability is now a business imperative. In the consumer goods (FMCG) sector, sustainability now plays a role in influencing everything from brand equity to purchase behavior. Consumers not only want but expect brands to reduce their environmental impact, incorporate sustainable practices across their operations, and communicate their progress transparently. Many believe the industry is falling short, creating a gap between what consumers want and what brands deliver.
To help brands bridge this gap, Toluna collaborated with InsideFMCG on a 3-part report based on research conducted in Australia and APAC. The research explored consumers’ sustainability priorities, the consequences of not meeting evolving expectations, and the future of sustainability-focused brand building in FMCG. In this blog post, we’re consolidating the key insights from all 3 reports and highlighting best practices for brands navigating this space.
The role of sustainability in brand equity
Across the FMCG landscape, the sustainability conversation has reached a tipping point. Consumers are no longer just asking brands to act; they’re expecting proof. Trust in this space is fragile: only 44% of global consumers trust brand sustainability claims. This underscores the need for transparent, consistent, and evidence-backed communication.
Successful brands embed sustainability across their supply chains and operations, not just in their marketing. Environmental, social and governance (ESG) performance is emerging as a crucial benchmark of trust for both consumers and regulators. Across APAC, governments are implementing stricter disclosure requirements, which align with consumer sentiment – 49% stated that ESG performance influences their willingness to recommend a brand.
To accommodate for these expectations, we recommend:
Use specific and credible sustainability terms like ‘carbon neutral’ or ‘carbon reduction’ instead of vague language like ‘eco-friendly’, which is more often associated with greenwashing. More on this later.
Share evidence and impact metrics, ideally linked to international standards and verified partners.
Make sustainability visible through packaging, labelling, and storytelling across channels – particularly on social media, where 88% of climate-related consumer conversations take place.
As ESG becomes central to business identity, brands that act early by embedding transparency into labelling, storytelling, and corporate reporting will gain a competitive advantage. When sustainability is part of a brand’s core identity and public persona, and not just a product feature, the brand builds long-term equity with consumers, who increasingly want to feel they’re making ethical choices.
The cost-of-living crisis & consumer tradeoffs
While most consumers expect more from brands, they also face their own limits: price sensitivity, information fatigue, and distrust of vague claims. The cost-of-living crisis in particular has shifted many consumer priorities. However, sustainability remains an important factor in retail decisions, with 73% of consumers saying they would change consumption habits to reduce their environmental impact.
More than half of the survey participants said they would stop (or reduce) buying from their favorite brand if they found out it was not environmentally responsible.
That said, tension lies between values and affordability. Cost perception still deters some consumers from choosing sustainable options. While consumers do claim they’re willing to pay more for sustainability, most cap that willingness at around 10% extra.
To navigate this, brands need to focus on:
Closing the value-action gap
Provide tools and reminders that help consumers follow through on their intentions, such as more transparent product labelling, default sustainable options, loyalty incentives, or visual cues reinforcing ethical impact.
Reinforcing the belief that individual actions do matter
Communication that includes empowerment, shared responsibility, and visible proof of collective progress can counteract eco-fatigue and skepticism.
Highlighting brand-led solutions, not just consumer responsibility
Many consumers believe it’s up to businesses to lead change, including reducing production emissions and improving supply chains
Challenges & opportunities for brands
In high-cost environments, consumers still care deeply about sustainability, but they need support to act on those values. They expect brands to lead the way, which can be challenging as brands face operational barriers like:
In addition to these barriers, brands also face reputational risks, with 62% of consumers worldwide expressing distrust towards brands’ sustainability messaging. Generic claims don’t cut it. Consumers want to see third-party certifications, clear & data-backed impact statements, and honest communication about progress (as well as limitations). Brands that communicate transparently can build credibility and trust, even if they are still early adopters of sustainable practices.
When it comes to messaging, the smallest details can influence consumer trust. Based on our data, the most effective messaging strategies hinge on:
Specificity
Use specific claims: “Made with 50% recycled plastic” will go a longer way than “eco-friendly.”
Verification
Leverage certifications (e.g. B Corp, Rainforest Alliance, and Climate Active. Support claims with data and make reports publicly accessible.
Clarity
Use straightforward labels and symbols (e.g. the Australasian Recycling Label). Analyze product impact on a per-unit basis.
Balancing emotion & reason
Combine logical messaging with inspiring emotional stories. Avoid guilt-driven narratives; instead, emphasize collective impact and solutions.
Consistency across channels
Ensure in-store, packaging, digital and media messaging align – inconsistency erodes trust.
When asked how they research a brand’s sustainability credentials before purchasing, most consumers cited packaging as one of the main touchpoints, with 72% depending on packaging labels to comprehend a brand’s sustainability commitment.
When asked to select the most important sustainability-related aspects of packaging, consumers prioritized recyclable packaging, compostable materials, and minimal packaging volume.
Successful sustainable packaging gets it right by:
Maintaining functional 2 3 integrity while switching to better materials; for example, plant-based, compostable or refillable options.
Clearly labelling packaging recyclability and sustainability effects, ideally with visual tools like color-coded systems, such as traffic light labels.
Educating consumers that packaging can be both practical and eco-friendly, to counter skepticism.
Data, traceability, and AI: the future of FMCG
In this evolving and increasingly demanding landscape, data is essential for brands to understand sentiment, adapt strategies, and bridge the sustainability perception gap. Traceability is also becoming an effective tool for building trust, as the desire for transparency remains strong.
Moreover, AI is reshaping how brands forecast, innovate, and communicate their sustainability efforts. It brings scale, speed, and precision to strategy development and execution. Smart labeling systems, digital product passports, and government initiatives across APAC are forming the backbone of next-generation sustainability strategies.
To stay ahead of these changes, we encourage FMCG brands to consider implementing the following:
Build from ESG outwards:
Embed ESG principles into all business functions, from product design and pricing to customer service and storytelling. Avoid isolating ESG within investor relations or compliance teams.
Turn traceability into a consumer tool:
Use QR codes, digital dashboards, and interactive packaging to deliver sustainability information directly to consumers. Real-time updates and personalized transparency build trust.
Use AI to future-proof operations:
Adopt AI platforms to simulate emissions, forecast demand, and map regulatory exposure. Predictive analytics support proactive strategies, not just
reactive compliance.
Continually track sentiment:
Invest in social listening and pulse surveys to identify emotional drivers, regional nuances, and changing concerns. Feed this data into innovation cycles.
Close the trust loop:
Show consumers how their feedback shapes product development, packaging design, or labelling. Reward their engagement with tangible change and recognition.
The future of sustainable FMCG brand building relies on closing the loop between intention, action and perception. As consumers become more informed and regulatory frameworks mature, brands that can demonstrate measurable impact will rise to the top.
The next generation of brand leaders won’t be those who shout the loudest, but rather those who show the most. By embedding transparency, leveraging technology, and elevating consumer trust, brands can transform sustainability from a compliance burden into a competitive advantage.
For more in-depth insights and case studies, download the full reports here:
Report 1: Consumer sustainability priorities in food & beverage
