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

The Challenge of Marketing Sustainable Products

Despite growing consumer preference for sustainable products, companies often struggle to capitalize on this trend. Common hurdles include:

• Demonstrating the growth potential and justified price premiums for sustainable goods.
• Balancing sustainability attributes with other desired product features.
• Crafting trustworthy marketing messages amid numerous competing claims and certifications.

Business Case for Sustainability: Strong Growth and Premiums

Research by NYU Stern’s Center for Sustainable Business (CSB) using 12 years of US point-of-sale data (covering 40% of the consumer packaged goods (CPG) market) reveals:

• Sustainable products’ sales grew at an average annual rate of 12.3% from 2019 to 2024, more than double the growth rate of conventional products.
• In 2024, sustainability-marketed products made up 23.8% of overall sales in analyzed categories.
• PwC’s 2024 consumer survey showed a willingness to pay 9.7% more for sustainable items.
• CSB found actual average price premiums at 26.6%, reaching over 100% in some paper products and about 50% for coffee, cereal, and chocolate.

Strategic Actions to Unlock the Full Value of Sustainable Products

1. Understand Customer Segments and Product Categories

• Millennials, college-educated consumers, urban dwellers, and high-income earners are leading purchasers of sustainable goods.
• Some categories, like dairy, have strong sustainability sales across all age groups.
• Identifying the right customer groups and tailoring offerings within specific categories is essential.

2. Amplify Product Appeal by Linking Sustainability to Core Attributes

• Successful marketing connects sustainability messages with a product’s primary qualities (e.g., taste, efficacy).
• Research by CSB and Edelman shows that combining one core product claim with up to two sustainability claims increases product appeal by 30 percentage points.
• Example: “Formulated with sustainable ingredients that are good for your skin” in skincare ties sustainability to product performance.

3. Prioritize Credible and Consumer-Centric Claims

• Most appealing claims emphasize benefits consumers care about:
  • Protecting human health (no harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Helping children and future generations
  • Preserving animal health
  • Sourcing from local or sustainable origins
• Less effective claims include vague scientific terms (biodegradable, climate-neutral), traceability, general packaging claims (except all-recycled content), and certifications alone.
• Certifications help regulators and some consumers but require additional messaging to boost appeal.

4. Ensure Precision and Substantiate Claims with Evidence

• Avoid ambiguous or generic claims like "clean," "natural," or "safe," which face legal challenges.
• Monitor evolving regulations, especially in the EU, where directives increasingly demand scientific substantiation of environmental claims.
• Build strong capabilities in value chain analysis and traceability to maintain compliance and build trust.

Conclusion

With sustainable products growing twice as fast and commanding significant price premiums, marketers who clarify their business case, connect sustainability to meaningful product attributes, and build credible, evidence-backed claims are positioned to unlock sustainable product value. This method balances consumer desires and regulatory demands, fostering trust and advancing the green marketplace.

Sources:

• NYU Stern Center for Sustainable Business (CSB) analysis based on Circana data
• PwC Global Consumer Survey 2024
• Research collaboration between NYU Stern CSB and PwC
• Communications research by Edelman

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.