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

The Challenge and Opportunity in Marketing Sustainable Products

Sustainable consumer products have gained significant traction as shoppers increasingly prefer green options. However, businesses face challenges in tapping this demand, including:

• Proving the growth potential and justifying premium pricing for sustainable products.
• Balancing sustainability features with other consumer-valued attributes.
• Establishing trust amid a flood of conflicting claims, labels, and certifications.

Strong Business Case Backed by Data

Research by NYU Stern’s Center for Sustainable Business (CSB) and PwC, analyzing 12 years of US sales data across 36 consumer goods categories (covering 40% of the CPG market), reveals compelling trends:

• Sustainability-marketed products grew sales at 12.3% annually from 2019 to 2024, over double the rate of conventional products.
• By 2024, these products made up nearly 24% of overall sales.
• Consumers exhibit willingness to pay an average premium of 9.7% for sustainable goods.
• Actual price premiums average 26.6%, and can exceed 100% in categories like paper products, and hover around 50% for coffee, cereal, and chocolate.

Strategic Marketing Actions to Capture Sustainable Product Value

1. Identify and Target Key Consumer Segments

Millennials, city dwellers, college-educated, and high-income groups tend to buy more sustainability-marketed products. However, these products also hold significant sales shares across demographics in key categories like dairy. Understanding your audience’s buying patterns is essential for focused marketing.

2. Amplify Appeal by Integrating Sustainability with Core Product Attributes

Effective marketing merges compelling product qualities (e.g., great taste, efficacy) with one or two strong sustainability claims. Research shows this blend boosts product appeal by 30 percentage points on average, outperforming messaging focused solely on sustainability.

Example: A skincare product described as “formulated with sustainable ingredients that are good for your skin” links eco-friendliness with consumer benefits, enhancing attractiveness.

3. Elevate Credible and Consumer-Valued Sustainability Claims

Consumers most respond to claims that reflect tangible benefits:

• Protecting human health (no harmful ingredients)
• Saving money
• Supporting local farms and communities
• Benefiting future generations
• Preserving animal health
• Sourcing from sustainable or local origins

Less effective are broader scientific or regulatory claims (biodegradability, climate-neutrality), traceability details, and most certification seals alone. Certifications help validate claims but are insufficient without clear messaging.

4. Ensure Precision and Evidence to Build Trust and Compliance

Vague claims like “natural” or “safe” are risky legally and can lead to lawsuits, especially for products used by children or applied to skin. Companies must:

• Substantiate claims with scientific evidence and traceability.
• Monitor evolving regulations, notably the EU’s Corporate Sustainability Reporting Directive, Due Diligence Directive, and proposed Green Claims Directive.
• Develop strong value chain transparency to comply with new legal standards and build consumer confidence.

Conclusion: Unlocking the Full Value of Sustainable Product Marketing

The collaboration between NYU Stern CSB and PwC offers a roadmap for consumer product companies to:

• Justify and support sustainable product development.
• Enhance marketing strategies by harmonizing product excellence with authentic sustainability messaging.
• Build credibility and trust with precise, evidence-backed claims amidst rising regulation.

Adopting these principles positions brands to capitalize on robust consumer demand while advancing meaningful sustainability goals.

Authors:
Tensie Whelan, Distinguished Professor of Practice at NYU Stern and Founding Director of the Center for Sustainable Business
David Linich, Principal at PwC US, Expert in Decarbonization and Sustainable Operations

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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.