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

Consumers increasingly prefer sustainable products, creating significant growth opportunities for companies. However, marketing these products effectively remains challenging due to issues like balancing sustainability attributes with other desirable features, earning consumer trust amid conflicting claims, and demonstrating clear business value.

Strong Growth and Price Premiums for Sustainability-Marketed Products

Research by NYU Stern’s Center for Sustainable Business (CSB) and PwC highlights that sustainability-marketed consumer packaged goods (CPG) have experienced impressive sales growth. Analyzing 12 years of U.S. point-of-sale data (2019-2024) across 36 categories—covering about 40% of the CPG market—CSB found:

• Sustainability-marketed products grew at an annual rate of 12.3%, more than double the growth of conventional items.
• By 2024, these products accounted for 23.8% of total category sales.
• Price premiums are notable, with consumers willing to pay an average of 9.7% more for sustainably produced goods (PwC survey, 2024).
• Actual price premiums averaged 26.6%, exceeding 100% in some paper products and about 50% for coffee, cereal, and chocolate.

Key Strategies to Unlock Sustainable Product Value

1. Target the Most Responsive Customer Groups

Purchasing behaviors vary by demographics. Millennials, college-educated shoppers, urban dwellers, and high-income consumers tend to buy more sustainability-marketed products. Importantly, certain categories like dairy show broad appeal across age groups. Marketers should identify and prioritize these segments for tailored campaigns.

2. Integrate Sustainability with Core Product Benefits

Effective marketing combines a product’s main appeal (taste, effectiveness, quality) with one or two carefully selected sustainability messages. Research by CSB and Edelman demonstrates this layered approach can boost product appeal by 30 percentage points and resonate across different consumer groups.

For instance, skincare products perform well when sustainability messages link directly to product benefits, e.g., "formulated with sustainable ingredients that are good for your skin."

3. Emphasize Trustworthy and Consumer-Valued Claims

Certain sustainability claims strongly influence purchasing decisions:

• Protecting human health by avoiding harmful ingredients
• Saving consumers money
• Supporting local farms and food systems
• Benefiting children and future generations
• Preserving animal health
• Originating from local or sustainable sources

In contrast, abstract claims about biodegradability, traceability, or generic certifications tend to be less persuasive unless substantiated by credible evidence and additional messaging.

Ensuring Precision and Compliance in Sustainability Claims

Ambiguous terms like "clean" or "natural" often face legal challenges, especially for products used by children or applied to the skin. Companies must provide clear, evidence-backed claims and stay updated on evolving regulations:

• EU policies such as the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive require monitoring supply chains.
• The pending EU Green Claims Directive will demand scientific substantiation for environmental claims.

Building robust capabilities in value chain analysis and traceability is essential for credibility and regulatory compliance.

Conclusion

Marketing sustainable products successfully hinges on combining a clear business case with appealing, trustworthy messaging tailored to receptive customer segments. By understanding consumer priorities, linking sustainability to core product benefits, and substantiating claims with rigorous evidence, companies can harness the growth and premium potential of sustainable offerings.

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

Sources:

• NYU Stern Center for Sustainable Business Research (2024-2025)
• PwC Consumer Survey (2024)
• CSB & Edelman Communication Studies (2024)
• EU Regulatory Framework Updates (2025)

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