As 2024 draws to a close, it’s an opportune moment to reflect on the consumer products market’s progress along its intricate path toward sustainability. The journey has been far from straightforward, marked by twists and turns as businesses navigate shifting priorities and external pressures. However, recent years—and 2024—have ushered in transformative developments. The introduction of mandatory measures, especially in the European Union (EU), reshapes the landscape and drives the sector toward a more sustainable future. Over the next two years, these regulations will redefine the industry’s trajectory, paving a clearer and more structured road toward sustainability.
This year has been pivotal in laying the foundation for significant changes, as ESG (Environmental, Social, and Governance) principles have evolved from aspirational goals to legally binding obligations. In 2024, numerous proposed ESG (Environmental, Social, and Governance)-focused laws transitioned into enforceable mandates in the EU, creating a new regulatory framework for businesses. This shift has spurred companies into action, prompting them to assess their compliance strategies and realign operations with these stringent requirements. The fast-paced evolution of this regulatory environment has left many scrambling to adapt, emphasizing the urgency of embedding sustainability and ESG (Environmental, Social, and Governance) considerations into their core strategies.
The consumer products market is now at a crossroads, where sustainability and regulatory compliance are no longer optional but integral to long-term success.
The tumultuous evolution of EU regulations
As 2024 draws to a close, it’s a fitting time to take stock of where the consumer products market stands on its long and complex journey towards sustainability. The term “journey” is used loosely here—sustainability has been a convoluted and uneven path over the years. However, the past few years, and 2024 in particular, have seen immense developments with the introduction of mandatory measures that will reshape the consumer products market landscape. As things currently stand, the industry will begin to look very different in two years’ time: there’s a new road en route to the destination of sustainability, and this year, much of that road has been paved by the European Union (EU).
2024 has been a landmark year for the groundwork of monumental changes, particularly as ESG (Environmental, Social, and Governance) considerations have moved from being voluntary goals to hard legal obligations. Many proposed laws with a strong ESG focus have transitioned into mandatory measures in EU Parliament this year. This shift has triggered a flurry of activity among companies trying to understand their new regulatory requirements and determine how best to comply. It’s a regulatory environment that evolves at speed, often leaving businesses in the consumer products market scrambling to keep up with the changing landscape.
The push for ESG compliance has also ignited a broader conversation about how companies in the consumer products market can integrate sustainability into their core business models. By embedding Environmental, Social, and Governance principles into their strategies, organizations are not only meeting legal requirements but also positioning themselves as leaders in the pursuit of a more sustainable future.
A politically sensitive landscape
Global perspectives: watching the US and UK
As the EU continues to lead on sustainability legislation, the world is watching closely to see how the United States responds. 2024 saw growing momentum for change, particularly in California, which introduced new laws aimed at reducing plastic packaging waste and increasing transparency in corporate environmental reporting. Still, many remain sceptical about whether the US will commit to new bold national policies in the near term.
The UK, on the other hand, faces an uncertain path. Once seen as a global leader in sustainability, the UK’s position has faltered in recent years. Now, with a new government in place, there is cautious optimism that the UK might refocus on sustainability to rebuild its reputation. However, concrete action remains to be seen, and the international community watches with measured interest.
Looking ahead
2024 has been a year of both progress and growing pains for sustainability in the consumer products market. The groundwork laid this year signals a decisive and irreversible shift toward more robust and enforceable sustainability measures. However, the road ahead will not be without challenges. Businesses face mounting pressure to adapt quickly, while governments must navigate the complex interplay of economic, political, and environmental priorities.
As we move into 2025, one thing is clear: the push for sustainability is no longer a choice—it’s imperative. The decisions made now will reshape the future of the consumer products market for decades to come.
