Global Sustainable Supply Chain Finance Market to Surpass Valuation of USD 5,700.5 Million by 2032: Astute Analytica
The global sustainable supply chain finance market is exploding, fueled by investor demand, consumer pressure, and the urgent need for supply chain resilience. With trillions of dollars in potential and innovative solutions emerging, SSCF transforms how business success and sustainability intersect.
New Delhi, Feb. 29, 2024 (GLOBE NEWSWIRE) — Global sustainable supply chain finance market was valued at US$ 1,344.2 million in 2023 and is projected to surpass the market valuation of US$ 5,700.5 million by 2032 at a CAGR of 17.47% During the Forecast Period 2024–2032.
Today, market players have come to realize that if they build a sustainable supply chain, they can both reduce risks (as much as 20% according to Astute Analytica) and unlock massive profits (15-20% more profitable on average). In addition, this will also help with brand reputation (15% increase on average), contributing to higher returns for shareholders (28% higher returns with strong ESG – MSCI). By linking financial incentives to sustainability benchmarks, companies like Unilever, Nike, Patagonia, HSBC, and Walmart are using their programs as a model of success. With examples like these becoming the norm in business and investors managing over $30 trillion in assets focusing on ESG goals, it’s clear that companies must adopt SSCF practices to survive. But even more than that, transparent supply chain practices will soon become an expectation from customers. The sector will be that key difference between those who succeed at transforming their business into a sustainable one – all while maintaining positive cash flow.
Get A Free Sample Copy @ https://www.astuteanalytica.com/request-sample/sustainable-supply-chain-finance-market
While challenges and the need for standardization remain, the sustainable supply chain finance sector is poised for explosive growth.
Key Findings in Sustainable Supply Chain Finance Market
| Market Forecast (2032) | US$ 5,700.5 million |
| CAGR | 17.47% |
| Largest Region (2023) | North America (38.5%) |
| By Type | Multiple Source (36.3%) |
| By Solution | Smart Contract Solution (38.4%) |
| By Enterprise Size | Large Enterprise (69.1%) |
| By Industry | Retail and E-commerce (21.5%) |
| Top Trends |
|
| Top Drivers |
|
| Top Challenges |
|
Financing the Future: SMEs Drive Sustainable Supply Chain Revolution, Despite Large Enterprise Capturing More than 69.1% Market Share
As of 2023, companies with big cash and client bases have gobbled up more than 69.1% of the global sustainable supply chain finance market. But even as that share continues to grow, small- and medium-sized businesses (SMEs) are becoming a bigger focus for SSC finance providers — for good reason. These firms make up about 90% of businesses worldwide, employ more than half the workforce and touch every corner of the economy, according to the World Bank. For them to adopt sustainable business practices is not only an environmental win but also an economic one. That said, SMEs are often left out in the cold by traditional finance sources. In particular, they struggle to access funds earmarked for sustainability improvements. It’s a gap that specialist SSC funders would fill.
Through these programs, large corporations and investors can bankroll smaller suppliers’ work on ESG goals in the sustainable supply chain finance market. Besides mitigating risk in supplier networks through productivity boosts and innovation potential (according to OECD), such efforts target poverty eradication and reduced inequality — both pillars of impact investing principles and UN Sustainable Development Goals. All together now: AB InBev, IKEA, Danone, Unilever and IFC are among the big-name companies that have thrown their might behind smaller businesses’ SCS efforts. Their initiatives don’t stop at cash either; each partner is offering mentorship or technical help too — resources that SMEs likely wouldn’t be able to afford on their own as they start out on what can be a complicated sustainability journey.
Though exact challenges vary company to company — whether it’s collecting reliable data or ensuring affordability for borrowers — all those involved know where there’s smoke there’s fire: The International Trade Centre estimates that SMEs face a $1tn financing hole globally; meanwhile CDP has predicted large-scale emissions reductions if suppliers ramp up collaboration with customers.
Retail and E-commerce Reshape Global Sustainable Supply Chain Finance Market, Controls Over 21.5% Market Share
The prominence of retail and e-commerce in the sustainable supply chain finance space is driven by a confluence of powerful factors. The sheer size and growth rate of the industry — global retail e-commerce sales are projected to reach $8 trillion by 2027 — shine a glaring spotlight on its environmental and social responsibility efforts. As six in 10 consumers prioritize sustainability (IBM) and 85% say they have become “greener” in their choices, these companies face increasing demands for transparency and action throughout their supply chains. Demand for transparency is validated by the fact that sustainable products drove 50% of consumer-packaged goods growth from 2013-2022 (NYU Stern), showing that consumers will put their money where their mouth is.
For retail and e-commerce companies, there are financial benefits at stake as well. Companies that make strides toward supply chain sustainability can see profit margins rise by 5-10% (CDP), as per recent findings by Astute Analytica. This is important, as supply chain emissions are often 11.4 times higher than direct emissions (CDP). Sustainable supply chains also tend to be more resilient, which can reduce costs by about 9% in the sustainable supply chain finance market. As 73% of consumers say they want to decrease their environmental footprint (European Commission), retailers that address this concern head on can gain an edge over competitors. Programs that involve sustainable supply chain finance can show the commitment and resources needed to turn words into measurable actions.
Examples like Walmart’s Project Gigaton, H&M’s Conscious Actions, Amazon’s Climate Pledge Friendly, Patagonia’s emphasis on circularity and Etsy’s emission offsetting demonstrates tangible steps toward change at scale. These programs in the sustainable supply chain finance market incentivize suppliers to innovate and reduce their own environmental footprints, ultimately benefiting both the industry and the world. However, the potential rewards stretch beyond image — sustainable products often command premium prices, further bolstering the business case for investing in sustainable practices throughout retail and e-commerce operations.
Purchase Our Comprehensive Report @ https://www.astuteanalytica.com/inquire-before-purchase/sustainable-supply-chain-finance-market
North America Leads the Sustainability Finance Revolution: Consumers, Innovation, and Policy Drive Change
North America’s leadership in the sustainable supply chain finance market results from an amalgamation of customer demand, technological ability, and a supportive policy environment. By 2023, the region will have earned over 38% of the global market revenue. There are several key reasons for this dominance. Firstly, North American customers are more aware now than ever about their purchasing choices. 73% of millennials are willing to pay premiums on sustainable products and generally consumers are 4-6 times likelier to support purpose-driven companies. This consumer pressure leads to demands for transparent and sustainable supply chains; this creates financial incentives that businesses must adopt SSCF practices in order to meet.
Furthermore, North America has a thriving innovation ecosystem as a result of its strong tech sector and established financial institutions that generate ground-breaking SSCF solutions. With AI-powered analytics, blockchain tools and specialized data platforms emerging at an unprecedented rate, there will be never-before-seen levels of transparency made possible along with sustainability performances being efficiently linked with financial incentives.
On top of that – or rather beneath it – is the policy landscape in North America sustainable supply chain finance market which further speeds up SSCF adoption. Carbon pricing initiatives, stricter environmental regulations and possible disclosure requirements for climate-related risks all create a regulatory environment that pushes businesses toward greater ESG accountability. When financing mechanisms align with sustainability performance within the supply chain it becomes an incredibly effective tool to meet these challenges as well as mitigate risks involved with them. Importantly, investors across North America strongly focus on ESG factors: 85% incorporate them into their decision-making process. As such, this demand fuels the development of innovative SSCF solutions as financial institutions cater to this growing demand.
Global Sustainable Supply Chain Finance Market Key Players
- ASYX
- BNP Paribas
- Citigroup, Inc.
- CRX Markets AG
- DBS Bank
- Deutsche Bank
- FQX
- HSBC
- ING Group
- JPMorgan Chase
- McKinsey & Company
- MUFG
- PrimeRevenue
- Standard Bank
- Standard Chartered
- Traxpay
- Vayana Network
- Other Prominent Players
Key Segmentation:
By Type
- Financial Institution
- Buyer Financed
- Supplier Financed
- Multiple Source
By Solution
- Sustainable Payables Finance
- Sustainable Trade Loans
- Smart Contract Solutions
- Others
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By Industry
- Foot & Apparels
- Food & Beverages
- Power & Energy
- Automobile
- Retail & E-Commerce
- Chemical & Materials
- Manufacturing
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
Request Our Methodology @ https://www.astuteanalytica.com/request-methodology/sustainable-supply-chain-finance-market
For further details or to explore our comprehensive industry reports, we invite you to connect with our dedicated team. Please reach out to us at sales@astuteanalytica.com for personalized assistance.
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
Contact us:
Vipin Singh
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
CONTACT: Vipin Singh BSI Business Park, H-15,Sector-63, Noida- 201301- India Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) Email: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. SingaporeOutlook.com takes no editorial responsibility for the same.
