A Better Way to Market Sustainable Products

Sustainability is increasingly influencing consumer choices, yet marketing sustainable products effectively remains a challenge for many companies. Insights from research by NYU Stern’s Center for Sustainable Business (CSB) and PwC provide actionable strategies to unlock the full market potential of sustainable goods.

The Business Case for Sustainable Products

Data analyzed from 2019 to 2024 by CSB, based on 12 years of US point-of-sale information from Circana, reveals:

• Sustainability-marketed products grew sales by 12.3% annually, more than double the growth rate of conventional items.
• In 2024, these products accounted for 23.8% of total sales across 36 consumer packaged goods (CPG) categories.
• Consumers are willing to pay a 9.7% premium for sustainably sourced or produced products, according to a PwC survey of 20,000 shoppers.
• Actual price premiums observed average 26.6% higher than conventional products, with some categories (paper products, coffee, cereal, chocolate) commanding premiums up to or exceeding 50%.

Key Consumer Segments and Product Categories

Certain demographics drive sustainability product sales:

• Millennials, college-educated, urban dwellers, and high-income shoppers tend to purchase more sustainability-marketed goods.
• Categories like dairy show high sustainability sales across all age groups.
• Understanding your company’s relevant customer segments and product categories is crucial for targeted marketing efforts.

How to Amplify Sustainable Product Appeal

Successful marketing combines sustainability messages with core product attributes:

• Research from CSB and Edelman shows that pairing one core product attribute (e.g., taste, texture, aroma) with one or two sustainability claims increases product appeal by 30 percentage points.
• Core attributes grounded in customer experience (like “rich, delicious chocolate”) reinforced with relevant sustainability benefits (such as “made with sustainably sourced cocoa”) resonate best.
• Overloading communications with sustainability claims or focusing solely on sustainability without linking to product quality reduces impact.

Action tip: Select sustainability messages directly relevant to the product’s main benefits to customers. For example, skincare products communicate sustainability through “formulated with ingredients that are good for your skin and sustainably sourced.”

Prioritizing Credible and Trusted Sustainability Claims

Consumers respond most positively to claims that:

• Protect human health (free from harmful ingredients)
• Save money
• Support local farms and food systems
• Benefit future generations and children
• Preserve animal health
• Originate from sustainable or local sources

Less effective claims include:

• Scientific attributes alone (biodegradable, climate-neutral)
• Supply chain traceability
• Packaging claims (except all-recycled content)
• Certification seals without additional messaging

Action tip: Use precise, evidence-based claims backed by data and certifications. Ambiguous terms like “clean,” “natural,” or “safe” risk legal challenges, especially in products for children or those applied to skin.

Navigating Regulatory Landscape

Regulations are tightening on sustainability claims:

• The EU’s Corporate Sustainability Reporting Directive and Due Diligence Directive require value chain transparency and monitoring of social/environmental impacts.
• The proposed EU Green Claims Directive would mandate scientific substantiation for environmental claims.
• Businesses should develop expertise in value chain analysis and traceability to ensure compliance and maintain consumer trust.

Conclusion

Sustainable products offer strong growth and pricing opportunities, but marketing success hinges on:

• Making a clear business case with data-driven insights.
• Crafting appealing messages linking sustainability with core product qualities.
• Using credible, precise, and evidence-backed claims.
• Staying abreast of evolving sustainability regulations.

By adopting these principles, companies can tap into green demand effectively while building lasting customer trust and brand value.

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

Sources:

• NYU Stern Center for Sustainable Business (CSB) research and analysis (2019–2024)
• PwC 2024 Consumer Survey on Sustainability Pricing
• CSB and Edelman research on sustainability messaging efficacy
• EU regulatory frameworks on sustainability claims (2025 updates)

For brands seeking to thrive in the sustainable marketplace, clarity, credibility, and connection with consumer values are the keys to success.

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.