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

Consumers increasingly favor sustainable products, yet many companies struggle to effectively tap into this demand. Recently, NYU Stern’s Center for Sustainable Business (CSB) in collaboration with PwC released research highlighting strategies to better market sustainable consumer packaged goods (CPGs), ensuring growth potential and price premiums justify investment in sustainability.

The Business Case for Sustainable Products

Strong Market Growth and Price Premiums

• Sustainable products grew at a 12.3% annual rate from 2019 to 2024, more than twice as fast as conventional items.
• In 2024, sustainability-marketed products accounted for 23.8% of total CPG sales across 36 product categories (about 40% of the US market excluding alcohol and tobacco).
• Consumers are willing to pay 9.7% higher prices for sustainable goods, according to a 2024 PwC survey of 20,000 people.
• Actual price premiums average 26.6% higher for sustainability-marketed products, with some paper goods exceeding 100% and categories like coffee, cereal, and chocolate around 50%.

Targeting Customers and Product Categories

Know Your Audience

• Millennial, college-educated, urban, and high-income consumers are most likely to buy sustainable products.
• Sustainability also drives significant sales in broad demographic groups, such as all age brackets within dairy product consumers.
• Understanding specific customer segments in your categories is critical to optimizing marketing efforts.

Crafting Effective Marketing Messages

Blend Core Product Qualities With Sustainability

• Research by CSB and Edelman shows the best marketing combines a core product attribute (e.g., taste, scent, effectiveness) with one or two key sustainability messages to boost appeal by up to 30 percentage points.
• Overloading a pitch with multiple sustainability claims or ignoring core qualities weakens customer response.

Select Sustainability Claims That Resonate

• High-appeal claims emphasize consumer benefits related to:

  • Protecting human health (e.g., no harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Supporting children and future generations
  • Preserving animal health
  • Local or sustainable sourcing

• Less effective claims include technical or scientific attributes (e.g., biodegradable, climate neutral), traceability, packaging (except 100% recycled content), and certification seals alone. Certifications validate claims but require additional messaging to engage buyers.

Ensuring Credibility and Compliance

Precision and Evidence Matter

• Avoid vague terms like “clean,” “natural,” or “safe,” which are often legally challenged.
• Products used by children or applied on skin are especially scrutinized.
• Track evolving regulations, including the EU’s Corporate Sustainability Reporting Directive and proposed Green Claims Directive, mandating substantiated environmental claims backed by scientific evidence and standards.

Build Capacity for Traceability and Value Chain Transparency

• Strong internal capabilities for analyzing sustainability impacts and verifying claims will protect brands and build consumer trust.

Conclusion

Marketing sustainable products successfully requires:

• Clear articulation of the business case backed by robust data
• A compelling blend of product benefits with two targeted sustainability messages
• Trustworthy, precise claims aligned with consumer values and regulatory standards

Companies adopting these evidence-based principles can capture the full growth and price premium potential of sustainable products while strengthening consumer loyalty and brand integrity.

Authors:
Tensie Whelan, Distinguished Professor at NYU Stern and Founder of CSB
David Linich, Principal at PwC US, expert in decarbonization and sustainable operations

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.