An interesting phenomenon is taking place across Australia in 2025, as the push for increased sustainability gathers momentum.
Despite cost-of-living pressures, consumers are seeking out sustainable products and services, even if they have to pay more.
A report from Monash Business School’s Australian Consumer and Retail Studies Unit shows that nearly 50% of Australian shoppers actively consider sustainability when buying.
The report also shows that 96% of Australian consumers engage in sustainable practices, and 42% are willing to pay more for sustainable choices.
Key trends for 2025
So, what does this mean for Australian businesses in 2025? And which industries look set to thrive?
One key takeaway from the 2025 World Economic Forum was that “embedding sustainability into business practices is a critical driver of resilience, competitiveness and long-term success”.
The Forum said that businesses must “create growth strategies that are both commercially viable and aligned with global sustainability goals’.
One such example is the rise of the circular economy in fashion and retail – a key business / industry trend in 2025.
Rise of the circular economy
Circular economy models focus not only on creating sustainable products and services – but also considers their entire lifecycle. In other words, how products can be reused, remade, or repaired instead of being discarded.
Moving forward, it is expected that more Australian brands will adopt these principles, offering repairs, trade-ins, or upcycled products.
When it comes to investment, sectors such as renewable energy, social enterprise, and affordable housing will be in the spotlight.
‘Impact investing’ is the next stage of ethical investment – going beyond avoiding ‘harmful’ industries to focus on businesses making a positive impact.
Opportunities for economic growth
The sustainable market is a rapidly growing and lucrative sector, offering Australian businesses opportunities for innovation and economic growth.
Key areas within this trend include:
- More use of recycled materials, sustainable and renewable resources, and bio-based alternatives
- More transparency about the origin, production, and environmental impact of products
- A continuing move away from single-use plastics towards more sustainable and recyclable packaging solutions
- More demand for sustainable home goods and products
- And an even greater focus on sustainable agriculture, reducing food waste, and promoting plant-based diets.
One of the biggest winners in this evolving trend is the Australian hemp industry.
Hemp industry to exceed $10 million
Regulatory changes in 2017 have prompted rapid growth in the industry and new domestic markets. In fact, the industry’s value looks set to exceed $10 million this year.
This is exciting news for the agricultural sector, of course, but also for many other Australian businesses and industries – including food, fibre/fashion, building and medicine.
The Australian Industrial Hemp Alliance says Hemp is also “a valuable source of biofuels and can also be used in biocomposite materials to replace plastics in applications as diverse as automotive panels and surfboards. There is also research underway to replace graphene in industrial batteries with hemp filaments.”
Discover how one Tasmanian business is rocking not only the future of the hemp industry – but also the traditional workplace. Don’t miss our cover story.