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

Introduction

Despite growing consumer preference for sustainable products, companies often grapple with marketing these items effectively. Challenges include proving sustainable products offer substantial growth and price premiums, balancing sustainability with other customer-valued features, and crafting trustworthy messages amid a complex landscape of claims and certifications.

The Business Case for Sustainability

• Sales Growth: Research by NYU Stern’s Center for Sustainable Business (CSB), analyzing 12 years of US point-of-sale data across 36 consumer goods categories, shows that products marketed for sustainability grew at an average annual rate of 12.3% from 2019 to 2024—more than double the growth of conventional products.
• Market Share: In 2024, sustainability-marketed products accounted for nearly 24% of total sales in these categories.
• Price Premiums: A 2024 PwC survey of 20,000 consumers revealed a willingness to pay an average premium of 9.7% for sustainable products. Actual market data from CSB indicated that sustainable products commanded an average price premium of 26.6%, exceeding 100% in some paper products and around 50% in items such as coffee, cereal, and chocolate.

How to Maximize the Value of Sustainable Products in Marketing

1. Recognize Key Customer Segments and Categories

• Millennials, college-educated shoppers, urban dwellers, and high-income consumers are more likely to buy sustainability-marketed products.
• Sustainability-driven sales are significant across categories like dairy, appealing to customers across age groups.
• Understanding which segments and categories to target enables marketers to prioritize efforts effectively.

2. Amplify Product Appeal by Linking Sustainability to Core Attributes

• Marketing successful sustainable products is akin to producing a hit song—messages must harmonize.
• Research from CSB and Edelman shows that an effective pitch centers on the product’s core quality (e.g., delicious taste, cleaning power).
• Incorporating one or two targeted sustainability claims alongside core product attributes can boost appeal by 30 percentage points across all consumer groups.
• Example: Skincare items marketed with “formulated with sustainable ingredients that are good for your skin” blend sustainability with product benefits consumers prioritize.

3. Advance Trustworthy, Consumer-Relevant Sustainability Claims

• Effective claims highlight benefits valued by consumers such as:
  • Protecting human health (free from harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Benefiting children and future generations
  • Preserving animal health
  • Sourcing from local or sustainable origins
• Less impactful are claims focused purely on scientific properties (e.g., biodegradability), traceability, packaging (except for all-recycled content), or sustainability certifications alone.
• Certification seals, while supportive for regulators and some consumers, require additional messaging to enhance appeal.

Best Practices: Precision, Evidence, and Compliance

• Avoid vague claims like “clean,” “natural,” or “safe,” which are vulnerable to legal challenges.
• Products targeted to vulnerable groups (children, ingestible or topical use) face higher scrutiny and lawsuits.
• Companies must stay informed about evolving regulations such as the EU Corporate Sustainability Reporting Directive, Due Diligence Directive, and potential adoption of the EU Green Claims Directive, which demands scientific substantiation of environmental claims.
• Building strong capabilities in value chain analysis and traceability is essential to comply and maintain consumer trust.

Conclusion

Sustainable product marketing presents real growth and pricing opportunities when companies clearly articulate the business case, blend sustainability with core product qualities, and emphasize credible, consumer-valued claims. By adopting these evidence-based strategies, brands can connect more effectively with their audience, gain competitive advantage, and contribute meaningful progress toward sustainability.

Authors:

• Tensie Whelan, Distinguished Professor of Practice at NYU Stern and Founding Director of the Center for Sustainable Business
• David Linich, Principal, PwC US, expert in decarbonization and sustainable operations

For marketers and retailers in the consumer packaged goods sector, leveraging these research-backed insights offers a pathway to unlock the full potential of sustainable products while fostering consumer trust in an evolving, sustainability-conscious marketplace.

Design Delight Studio curates high-impact, authoritative insights into sustainable and organic product trends, helping conscious consumers and innovative brands stay ahead in a fast-evolving green economy.