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

Sustainable products continue to grow in popularity among consumers, yet companies often encounter challenges in effectively marketing these products to capture growth and justify investment. Research from New York University Stern’s Center for Sustainable Business (CSB) in collaboration with PwC offers evidence-based strategies to enhance the marketing and positioning of sustainable consumer goods.

Strong Market Growth and Price Premiums for Sustainable Products

• Sustainability-marketed products recorded an impressive annual sales growth rate of 12.3% from 2019 to 2024, outpacing conventional products by more than double (2.3x).
• In 2024, these products accounted for 23.8% of total consumer packaged goods (CPG) sales based on 12 years of US point-of-sale data covering 36 key categories.
• Consumers demonstrate a clear willingness to pay more, with surveys showing an average 9.7% premium for sustainably produced or sourced products.
• CSB’s data confirm that these premiums exist in practice, with sustainable goods commanding an average 26.6% higher price than conventional alternatives. Some product categories such as paper products exceeded 100% premiums, while coffee, cereal, and chocolate showed premiums around 50%.

Effective Marketing Strategies: Clarity, Appeal, and Credibility

1. Understand Customer Segments and Category Reach

• Millennials, college-educated shoppers, urban residents, and high-income consumers are the most inclined to purchase sustainability-marketed products.
• Sustainable options hold significant sales shares in key categories like dairy across demographics.
• Brands must identify target customers most receptive to sustainability in their categories for optimal marketing impact.

2. Integrate Sustainability with Core Product Attributes

• Successful marketing combines core product qualities (e.g., taste, cleanliness) with one or two powerful sustainability messages.
• Research by CSB and Edelman shows that pairing strong product attributes with sustainability claims increases product appeal by 30 percentage points on average.
• Messages tied directly to relevant product benefits resonate best—for instance, skincare products highlighting “formulated with sustainable ingredients good for your skin.”

3. Advance Meaningful, Trustworthy Claims

• Consumer appeal is highest for sustainability claims that emphasize direct benefits:
  • Protecting human health (free from harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Benefiting children and future generations
  • Preserving animal health
  • Originating from sustainable or local sources
• Less effective claims involve technical environmental attributes like biodegradability, traceability, or climate-neutrality unless backed by credible third-party certification.
• Although certifications help validate claims, they need to be supplemented with clear messaging to enhance customer trust.

4. Be Precise and Evidence-Based

• Avoid vague claims such as “clean,” “natural,” or “safe” that are vulnerable to legal challenges, especially for products used by children or applied to skin.
• Strong claims require scientific evidence and must align with evolving regulations, including the EU’s Corporate Sustainability Reporting Directive and upcoming Green Claims Directive, which demand substantiation of environmental statements.
• Building robust capabilities around value chain analysis and traceability is critical for compliance and credibility.

Conclusion

Marketing leaders who emphasize the business case, tailor messaging to customer preferences, and ground sustainability claims in credible evidence can unlock substantial growth and price premiums for their sustainable products. The combined insights from NYU Stern’s CSB and PwC provide a practical roadmap for delivering impactful, trusted communication that drives consumer engagement and supports sustainable growth.

About the Authors

• Tensie Whelan — Distinguished Professor of Practice at NYU Stern and Founding Director of the Center for Sustainable Business.
• David Linich — Principal at PwC US, specializing in decarbonization and sustainable operations.

Source: NYU Stern Center for Sustainable Business & PwC, May 2025

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.