A Better Way to Market Sustainable Products

Overview

Sustainable products have experienced rising consumer interest, yet companies often face challenges in marketing these goods effectively. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC outlines key strategies for maximizing growth and consumer trust in sustainable product marketing.

Market Potential and Growth

• Strong Sales Growth: Sustainability-marketed products grew at an annual rate of 12.3% from 2019 to 2024, more than double the rate of conventional products.
• Market Share Rise: These products claimed 23.8% of overall consumer packaged goods sales in 2024 within 36 major categories, covering about 40% of the U.S. CPG market (excluding alcohol and tobacco).
• Price Premiums: Consumers are willing to pay a premium for sustainable products. PwC’s 2024 survey of 20,000 consumers indicated a willingness to pay 9.7% more, while CSB research found actual premiums averaging 26.6%, with some categories like paper products exceeding 100%, and coffee, cereal, and chocolate around 50%.

Key Marketing Takeaways

1. Understand Your Audience

High-purchasing demographics for sustainable products include:

• Millennials
• College-educated consumers
• Urban dwellers
• High-income earners
  Additionally, some categories like dairy show strong sustainable product sales across all age groups. Identifying which segments in your product category are most sustainability-oriented is essential.

2. Craft Effective Messaging

• Focus on Core Product Qualities: Marketing should first highlight the product’s main benefit (e.g., taste, cleanliness).
• Add One or Two Sustainability Claims: Layering sustainability messages with core product attributes can increase product appeal by up to 30 percentage points. For example, a skincare product might emphasize “formulated with sustainable ingredients that are good for your skin.”
• Relevance is Key: Sustainability attributes should align with the product category and consumer priorities to maximize impact.

3. Promote Credible and Valued Claims

Most compelling sustainability claims relate to benefits such as:

• Protecting human health (no harmful ingredients)
• Saving money
• Supporting local farms and food systems
• Ensuring better futures for children and communities
• Preserving animal health
• Use of sustainable or local sources

Less effective claims usually involve scientific terms (biodegradable, climate-neutral), traceability, ambiguous packaging claims (except all-recycled content), or generic certification seals without context. Certification helps regulatory validation but needs accompanying messages for consumer appeal.

4. Ensure Precision and Evidence

• Avoid vague or generic claims like “natural,” “clean,” or “safe,” which risk legal challenges, especially in products for children, ingestibles, or skincare.
• Stay updated with evolving regulations such as the EU’s Corporate Sustainability Reporting Directive, Due Diligence Directive, and proposed Green Claims Directive, which demand scientific substantiation of environmental claims.
• Building robust value chain analysis and product traceability capabilities is increasingly vital.

Conclusion

Marketing sustainable products effectively demands strategic clarity around the business case, savvy message crafting tied to core product benefits, and credible evidence to build consumer trust. Companies that invest in these areas are better positioned to capitalize on the growing demand for sustainable goods, achieve price premiums, and foster customer loyalty.

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

For businesses targeting organic and sustainable product markets, implementing these research-backed marketing principles can unlock significant growth while reinforcing genuine value and trust with consumers.

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.