A Better Way to Market Sustainable Products: Insights from NYU Stern and PwC

Sustainable products enjoy growing consumer preference, but translating this green demand into profitable business growth remains a challenge for many companies. Recent research by NYU Stern’s Center for Sustainable Business (CSB) and PwC sheds light on effective marketing strategies that unlock the full value of sustainability in consumer packaged goods (CPG).

Key Findings on Market Growth and Price Premiums

• Rapid Growth: Sustainability-marketed products grew by an average of 12.3% annually from 2019 to 2024, outpacing conventional products by 2.3 times. By 2024, such products comprised 23.8% of total CPG sales across 36 categories, representing around 40% of the overall market (excluding alcohol and tobacco).
• Price Premiums: A 2024 PwC survey of 20,000 consumers found a willingness to pay nearly 10% more for sustainable goods. Actual market data show sustainability-marketed items command an average premium of 26.6%, with some categories like paper products exceeding 100%, and coffee, cereal, and chocolate around 50%.

Strategies to Realize Full Value from Product Sustainability

1. Clarify the Business Case Through Customer Segmentation

Certain demographics—millennials, college-educated consumers, urban residents, and higher-income earners—are more inclined to purchase sustainability-marketed products. Nonetheless, sizable sales shares and premiums exist across all age groups in key categories such as dairy. Identifying target customer groups within specific product categories is essential.

2. Amplify Appeal by Linking Sustainability with Core Product Attributes

Successful marketing pitches combine a product’s fundamental appeal (e.g., taste, effectiveness) with sustainability messages. Research by CSB and Edelman shows that pairing one core product attribute with one or two sustainability claims boosts appeal by about 30 percentage points versus multiple core claims alone. For example, skincare products positioned as “formulated with sustainable ingredients that are good for your skin” effectively connect sustainability with consumer priorities.

3. Elevate Claims That Resonate and Build Trust

Consumers prioritize sustainability benefits that directly impact them or their values, including:

• Protecting human health (free of harmful ingredients)
• Cost savings
• Supporting local farms and food systems
• Caring for future generations and children
• Preserving animal health
• Originating from sustainable or local sources

Conversely, claims about biodegradability, climate neutrality, traceability, or certifications resonate less strongly on their own. Certification seals can aid credibility but require complementary messaging for consumer appeal.

4. Prioritize Precision, Evidence, and Compliance

Ambiguous claims like “natural” or “safe” risk legal challenges, especially for sensitive products (used by children or applied to skin). Companies must track evolving regulations such as the EU’s Corporate Sustainability Reporting Directive and upcoming Green Claims Directive, which demand scientific backing and transparent supply chain analysis. Building strong capabilities in value chain traceability and robust evidence will safeguard credibility and trust.

Conclusion

The pathway to profitable and credible marketing of sustainable products lies in:

• Understanding consumer segments that value sustainability
• Harmonizing sustainability messages with core product benefits
• Promoting claims with clear consumer value and trustworthiness
• Ensuring precise, verifiable communication aligned with regulatory standards

This strategic blend is vital for consumer product companies to tap into growing green demand, justify investment in sustainable innovation, and capture meaningful price premiums.

About the Authors

Tensie Whelan is Distinguished Professor of Practice at NYU Stern and Founding Director of its Center for Sustainable Business. David Linich is a principal at PwC US specializing in decarbonization and sustainable operations.

This summary is based on research published May 21, 2025, by NYU Stern Center for Sustainable Business and PwC.

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