June 11, 2008- Sustainability practices boost profits and strengthen consumer loyalty in a tough economic climate, according to new report on trends in the consumer products industry.

The report, conducted for the Grocery Manufacturers Association (GMA) by PriceWaterhouseCoopers, shows that U.S. consumer products manufacturers saw 10.6% sales growth last year despite a sagging economy.

"The consumer products sector showed incredible resilience this past year in the face of a tough economy, and we saw many companies using creative strategies to manage costs while delivering value to consumers," says Stephen Sibert, GMA senior vice president for industry affairs.

The report also finds that strong sustainability practices, such as reducing input costs by simply using fewer inputs, and collaborating with retailers, can help a company reduce its costs.

The report cites General Mills Inc. as a prime example. By changing the case configurations of the company’s Progresso soup brand, the company was able to remove 2,000 tons of steel from Progresso’s annual steel input. The company now spends less on steel and can boasts lighter cans, which attracts consumers.

The GMA study echoes the findings of an earlier survey, which found that half of U.S. consumers consider at least one sustainability factor in selecting consumer packaged goods. Green-minded purchasing, once considered a primarily youth-driven movement, now appears to cut across all market segments, according to that survey.

A separate study published last week pegged the market for green consumer products to reach $400 billion by 2010.

"It's well known that sustainability initiatives can be a great brand and reputation enhancer, but now we've discovered they're much more. Positive reporting on these initiatives can enhance a company's bottom line and shareholder value," says Lisa Feigen Dugal, the North American consumer packaged goods and retail advisory leader for PricewaterhouseCoopers.

To download the full GMA report, click here.