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

Consumers increasingly prefer sustainable products, yet companies face challenges in effectively marketing these offerings to capture growth and justify investment. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC highlights strategic approaches to enhance the appeal, credibility, and business value of sustainable consumer products.

The Business Case for Sustainable Products

• Strong Market Growth: Analysis of 12 years of U.S. retail data (36 consumer packaged goods categories representing about 40% of the market) shows sustainability-marketed products grew 12.3% annually from 2019 to 2024—more than double the growth rate of conventional goods.
• Sales Share: By 2024, these products accounted for nearly 24% of overall sales.
• Price Premium: A 2024 PwC survey of 20,000 consumers found shoppers willing to pay an average 9.7% premium for sustainable goods. CSB research shows an actual average price premium of 26.6%, reaching over 100% in some categories such as paper products, and around 50% for coffee, cereal, and chocolate.

Key Strategic Recommendations for Marketing Leaders

1. Recognize and Target the Right Customer Segments

Certain demographics—millennials, college-educated shoppers, urban residents, and high-income earners—drive sustainable product sales. Sustainability-marketed products also have significant shares in categories like dairy across age groups. Understanding which customer groups are likely buyers within specific product categories is critical.

2. Amplify the Appeal with a Balanced Message Mix

Marketing research by CSB and Edelman reveals:

• Focus on a core product attribute (e.g., taste or efficacy).
• Layer one or two clear sustainability claims linked to the core product benefit.
• This approach increases product appeal by up to 30 percentage points compared to messages that feature multiple core claims or vague sustainability assertions.
• Example: In skincare, “formulated with sustainable ingredients that are good for your skin” links sustainability directly to a core consumer concern.

3. Advance Credible, Consumer-Relevant Claims

Consumers respond best to claims tied to direct benefits:

• Protecting human health (no harmful ingredients)
• Saving money
• Supporting local farms and food systems
• Benefiting children and future generations
• Preserving animal health
• Using local or sustainable sourcing

Less effective are claims about biodegradability, climate-neutrality, or traceability unless backed by clear evidence. Certification seals validate claims but require complementary messaging for stronger consumer trust.

4. Ensure Precision and Evidential Support

• Avoid ambiguous claims like “clean” or “natural,” which are susceptible to legal challenges, especially for products used by children or applied to skin.
• Stay abreast of evolving regulatory frameworks, such as the EU’s Corporate Sustainability Reporting Directive and Green Claims Directive, which demand scientific substantiation and value chain traceability.
• Building capabilities for value chain analysis is essential for credible communication and regulatory compliance.

Conclusion: Capturing the Full Value of Sustainability

Sustainable consumer products not only meet growing consumer demand but also deliver measurable sales growth and price premiums. Success in marketing these products lies in clearly articulating the business case, crafting messages that harmonize product benefits with sustainability, and backing claims with transparency and evidence.

By embracing these principles, companies can strengthen customer trust, differentiate brands, and contribute to a more sustainable future while achieving strong commercial performance.

About the Authors

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

Source: Research and report by NYU Stern Center for Sustainable Business and PwC, May 2025

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