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

As consumers increasingly prefer sustainable products, companies face the challenge of effectively marketing these items to unlock growth and justify investments. Research by NYU Stern’s Center for Sustainable Business (CSB) in partnership with PwC sheds light on successful strategies for positioning sustainable products in the marketplace.

The Business Case for Sustainability in Consumer Products

• Rapid Growth: Analysis of 12 years of U.S. point-of-sale data from Circana shows sustainability-marketed consumer packaged goods (CPGs) grew at an annual rate of 12.3% from 2019 to 2024, more than twice the pace of conventional products. By 2024, such products accounted for 23.8% of overall CPG sales in included categories.

• Price Premiums: Consumer surveys conducted by PwC in 2024 reveal shoppers are willing to pay on average 9.7% more for sustainably produced or sourced goods. CSB data confirms premium pricing is real, with sustainability-marketed products commanding an average 26.6% price premium, exceeding 100% for some paper goods and around 50% for coffee, cereal, and chocolate categories.

Key Strategies for Effective Sustainability Marketing

1. Understand Customer Segments and Category Impact

• Certain demographics such as millennials, college-educated consumers, urban dwellers, and high-income earners show higher purchases of sustainability-marketed products.
• Some product categories like dairy see significant sales shares of sustainable products across all age groups.
• Tailoring marketing efforts to the right customer segments and product types is essential to capture value.

2. Amplify the Appeal by Pairing Sustainability with Core Product Attributes

• Research by CSB and communications firm Edelman shows marketing messages centered around a product’s core qualities (e.g., taste, effectiveness) combined with one or two well-chosen sustainability claims generate the strongest customer appeal.
• This layered messaging boosts product appeal by about 30 percentage points on average and works well across diverse customer groups.
• Example: In skincare, messages framed as "formulated with sustainable ingredients that are good for your skin" effectively link sustainability benefits to key consumer concerns.

3. Prioritize Reliable, Consumer-Relevant Claims

• Surveyed consumers rate claims emphasizing human health protection, cost savings, support for local farms, benefits for future generations, animal welfare, and local or sustainable sourcing as highly credible and appealing.
• Less effective are claims focused solely on scientific properties (biodegradability, climate neutrality), traceability, packaging (except all-recycled content), and generic certification seals.
• Certifications support credibility but need to be complemented with clear, consumer-relevant messaging.

4. Ensure Precision and Evidence in Sustainability Claims

• Avoid ambiguous or generic claims like "clean," "natural," or "safe," which are prone to legal challenges—especially for products used by children or applied to skin.
• Stay abreast of evolving regulations, such as the EU Corporate Sustainability Reporting Directive, Due Diligence Directive, and the forthcoming Green Claims Directive, which require scientific substantiation of environmental claims.
• Building strong value chain analysis and traceability systems will help companies validate and defend sustainability messaging.

Conclusion

Marketing sustainable products successfully requires a blend of data-driven customer insights, aligned core and sustainability product messaging, and accountable, transparent claims supported by evidence. Companies that master these principles can unlock substantial growth opportunities and strengthen consumer trust in green brands.

Authors:

• Tensie Whelan, Distinguished Professor of Practice, NYU Stern and Founding Director, NYU Stern Center for Sustainable Business
• David Linich, Principal, PwC US, Specialist in Decarbonization and Sustainable Operations

Published: May 21, 2025

Tags: consumer packaged goods, marketing strategies, sustainability marketing, price premium, consumer trust, sustainable products

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.