A Better Way to Market Sustainable Products

Overview
Consumers now favor sustainable products. Companies struggle to use this trend. They must prove business potential, balance sustainability with other product features, and deliver clear, credible messages. Research by the NYU Stern Center for Sustainable Business (CSB) and PwC gives clear steps for success.

The Business Case for Sustainability

• Sales Growth:
  Data from 12 years in the US shows sustainable products grow 12.3% yearly from 2019 to 2024. This rate tops the growth of common products by more than twice. By 2024, sustainable items account for 23.8% of sales.

• Price Premiums:
  A PwC 2024 survey of 20,000 consumers shows buyers pay a 9.7% premium on average for sustainable products. CSB data shows that premiums average 26.6%. Some paper goods have premiums over 100%, while products like coffee, cereal, and chocolate near a 50% premium.

• Key Insight:
  Sustainable products win favor. They also let companies charge more. This trend marks a clear chance for growth.

Targeting the Right Customers

Consumers who value sustainability are easy to spot. They are often millennials, well-educated shoppers, urban residents, or high-income buyers. Sustainable products also do well in categories like dairy with many groups.
• Companies should check their segments.
• They must choose those who will embrace sustainable offers.

Creating Compelling Marketing Messages

Good marketing ties a product’s strong points (taste, cleanliness) with one or two sustainability claims.
Research by CSB and Edelman shows that when brands add these messages to their key benefits, they boost appeal by 30 percentage points.
• For skin care, a claim like “formulated with sustainable ingredients” links product benefits with sustainability.
• Using too many claims or ignoring core benefits can harm the message.

Prioritizing Credible and Trusted Claims

High-impact claims show clear benefits:
• Protecting health by avoiding harmful ingredients
• Saving money
• Helping local farms and food systems
• Supporting children and future generations
• Preserving animal well‐being
• Using local or proven sustainable sources

Claims about scientific terms such as biodegradability or climate neutrality do not work as well alone. Certification seals help back claims. Still, extra words are needed to win trust.

Ensuring Precision and Compliance

Keep claims clear and specific. Avoid words like “clean,” “natural,” or “safe” when they are vague. These words can trigger legal issues for products meant for children or the skin.
Keep up with rules like the EU’s Corporate Sustainability Reporting Directive, Due Diligence Directive, and future Green Claims Directive. These rules call for proof of any environmental claims.
Strengthen the link between your value chain and product traceability. This work supports both credibility and compliance.

Conclusion

Marketing sustainable products means you must show business value clearly. Link sustainability to real product benefits. Use exact and trusted language. Choose consumer groups that are open to these ideas. Follow the rules. These steps let companies use sustainability as a strong tool for better sales and higher prices.

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

Key Data Sources:
• US point-of-sale data from Circana (formerly IRI)
• PwC 2024 Consumer Survey
• NYU Stern CSB and Edelman Marketing Research

For brands that stand by sustainability, follow these clear, research-based methods. Build trust with consumers, boost product appeal, and grow in a crowded market with sustainable offerings.

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.