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

Sustainable consumer products are increasingly in demand, yet many companies face challenges in effectively marketing these items to capture their full growth potential and justify investment. Research led by NYU Stern’s Center for Sustainable Business (CSB), in partnership with PwC, offers data-driven strategies to bridge this gap and enhance the marketing of sustainable goods.

Strong Market Growth and Price Premiums for Sustainable Products

Data analyzed by CSB from Circana’s US point-of-sale records reveals that sustainability-marketed consumer packaged goods (CPG) grew at an annual rate of 12.3% between 2019 and 2024, more than double the pace of conventional products. By 2024, these products accounted for nearly 24% of total sales across key categories, excluding alcohol and tobacco.

Consumers also demonstrate a willingness to pay a premium. A PwC survey of 20,000 consumers in 2024 showed an average premium of 9.7% above standard pricing for sustainably produced or sourced goods. In practice, CSB studies found the average premium to be 26.6%, with some categories like paper products exceeding 100%, and coffee, cereal, and chocolate around 50%.

Key Strategies for Marketing Leaders

1. Recognize Which Customer Groups Drive Demand

Demographic insights pinpoint millennials, college-educated shoppers, urban residents, and high-income earners as primary buyers of sustainability-marketed products. Moreover, some categories such as dairy show widespread acceptance of sustainable options across all age groups. Understanding these customer profiles helps tailor marketing strategies to maximize impact.

2. Amplify Sustainable Appeal by Linking It to Core Product Qualities

Successful sustainable product pitches focus first on a compelling core attribute—such as taste, scent, or effectiveness—and then layer one or two sustainability claims that enhance the product’s overall appeal. Research by CSB and Edelman demonstrates this approach can boost product appeal by 30 percentage points on average, outperforming pitches that emphasize multiple core features.

For example, skincare products marketed as “formulated with sustainable ingredients that are good for your skin” connect sustainability directly to a consumer’s main concern: skin health.

3. Prioritize Sustainability Claims Valued and Trusted by Consumers

Not all sustainability claims resonate equally. CSB and Edelman identify six highly appealing claim types emphasizing direct consumer or ethical benefits:

• Protecting human health (e.g., no harmful ingredients)
• Saving money
• Supporting local farms and food systems
• Advocating for children and future generations
• Preserving animal health
• Sourcing locally or sustainably

Less effective are claims focused on scientific attributes (biodegradability, carbon neutrality), traceability, or certifications alone, although seals help validate claims for regulators and specific consumers.

4. Ensure Clarity and Evidence to Build Credibility

Generic or vague claims like “clean” or “natural” risk legal challenges, especially for products used by children or applied to the skin. Companies must:

• Provide scientific substantiation and evidence for sustainability claims
• Monitor evolving regulations such as the EU’s Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and the proposed Green Claims Directive
• Invest in robust value chain analysis and product traceability systems

These steps mitigate legal risks and build consumer trust.

Conclusion

Sustainable products offer significant growth and pricing opportunities, but unlocking their full potential depends on smart marketing that blends credible sustainability claims with core product benefits targeted at the right customer segments. Companies that adopt these evidence-based strategies can build stronger brands, foster customer trust, and contribute meaningfully to sustainability goals.

Authors:
Tensie Whelan, Distinguished Professor at NYU Stern and Founding Director of NYU Stern Center for Sustainable Business
David Linich, Principal at PwC US specializing in decarbonization and sustainable operations

This research-based approach to marketing sustainable products provides actionable insights for consumer product companies aiming to thrive in the evolving green 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.