A Better Way to Market Sustainable Products: Key Insights and Strategies

Sustainable consumer products are increasingly favored by shoppers, yet many companies face challenges in effectively marketing these goods. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC highlights practical approaches to maximizing the value and appeal of sustainability in product marketing.

The Business Case for Sustainable Products

Sustainability-marketed products have demonstrated robust growth and significant price premiums:

• Sales Growth: Analysis of 12 years of US point-of-sale data (36 categories covering ~40% of consumer packaged goods) shows sustainability-marketed items grew nearly 12.3% annually from 2019 to 2024, outpacing conventional products by 2.3 times.
• Market Share: These items accounted for 23.8% of overall CPG sales in 2024.
• Price Premiums: PwC’s 2024 consumer survey reported willingness to pay 9.7% more for sustainable goods; actual premiums averaged 26.6% higher than conventional products, exceeding 100% in some paper products and around 50% for coffee, cereal, and chocolate.

Marketing Strategies to Unlock Full Potential

1. Understand Your Market and Customers

• Millennial, college-educated, urban, and high-income consumers show greater propensity to purchase sustainable products.
• Certain categories like dairy have broad appeal across age groups.
• Recognizing which customer segments and product categories to target is critical for effective investment and messaging.

2. Focus on Product Core Qualities with Layered Sustainability Messages

• Effective marketing centers on a product’s primary appeal (e.g., “rich, delicious chocolate” or “soap that leaves you smelling clean”).
• Adding one or two sustainability claims related to product benefits increases appeal by around 30 percentage points.
• The sustainability message should link closely to attributes meaningful in the product’s category, such as skincare products formulated with sustainable ingredients that also benefit skin health.

3. Prioritize Trustworthy, Impactful Claims

• Consumers respond best to sustainability messages that highlight consumer benefits:

  • Protecting human health (e.g., free from harmful ingredients).
  • Saving money.
  • Supporting local farms and ecosystems.
  • Benefiting children and future generations.
  • Protecting animal welfare.
  • Using local or sustainable sources.

• Less effective are claims focused solely on scientific features (like biodegradability or climate neutrality), traceability, packaging (except all-recycled content), or certifications alone.

• Certification seals add regulatory validation but need supplementary messaging for consumer appeal.

Navigating Legal and Regulatory Frameworks

• Avoid vague or generic claims such as "clean," "natural," or "safe," which can invite legal challenges, especially for products used by children or applied to skin.
• Stay informed on evolving regulations, such as the European Union’s Corporate Sustainability Reporting Directive, Sustainability Due Diligence Directive, and the prospective Green Claims Directive that mandates scientific substantiation of environmental claims.
• Building strong capabilities in value chain analysis and traceability is essential to both comply with regulation and substantiate claims credibly.

Conclusion

For consumer product companies, the path to successfully marketing sustainable products lies in clarifying the business value, connecting sustainability to desirable product attributes, and presenting credible, consumer-centric claims supported by solid evidence. This blend drives both growth and trust in an increasingly discerning eco-conscious marketplace.

About the Authors

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

Sources:

• NYU Stern Center for Sustainable Business analysis of Circana point-of-sale data.
• PwC 2024 Consumer Survey on Sustainability.
• Joint research studies with Edelman Communications.

By adopting these informed strategies, marketers can better capture the growing demand and deliver sustainable products that resonate with today’s eco-conscious consumers.

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