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

As consumer interest in sustainable products grows, companies face challenges in effectively marketing these goods while balancing sustainability attributes with other customer priorities. Research by the NYU Stern Center for Sustainable Business (CSB) and PwC offers critical guidance to navigate this complex landscape and unlock the full value of sustainable product marketing.

The Business Case for Sustainable Products

Sustainably marketed consumer goods have shown robust growth, expanding nearly 12.3% annually from 2019 to 2024—more than double the growth rate of conventional products. By 2024, these products accounted for 23.8% of total sales in analyzed categories representing about 40% of the US consumer packaged goods (CPG) market.

Consumers also demonstrate a willingness to pay a premium for sustainability: a 2024 PwC survey of 20,000 respondents found an average premium willingness of 9.7%, while CSB data revealed an actual price premium of 26.6% for sustainably marketed items. Certain product categories, such as paper goods, coffee, cereal, and chocolate, boast even higher premiums reaching up to 100% and 50%, respectively.

Takeaway: Sustainable products not only meet growing consumer demand but also offer significant revenue and margin enhancement opportunities.

Understanding Customer Segments and Category Reach

Research identifies key consumer demographics that purchase sustainable products more frequently, including millennials, college-educated shoppers, urban dwellers, and high-income earners. Meanwhile, categories like dairy show substantial sustainable product sales across all age groups.

Action Point: Identify which customer segments in your product categories are most inclined toward sustainability to tailor marketing efforts effectively.

Crafting Appealing and Credible Sustainability Messages

Successful product marketing combines a compelling core product attribute with one or two strong sustainability messages. For example:

• A chocolate bar highlighted as rich and delicious, with sustainability claims about sourcing.
• A soap that leaves you smelling clean, paired with sustainable ingredient claims.

This blend increases product appeal by approximately 30 percentage points. Importantly, sustainability messaging should align with attributes valued in that product’s category—for example, skincare products marketed as “formulated with sustainable ingredients that are good for your skin.”

Most Effective Sustainability Claims:

• Protecting human health by avoiding harmful ingredients.
• Saving consumers money.
• Supporting local farms and food systems.
• Benefiting children and future generations.
• Preserving animal health.
• Originating from sustainable or local sources.

Less Effective Claims:

• Biodegradability or climate neutrality.
• Traceability.
• Packaging (except for all-recycled content).
• Certification seals (useful for validation but insufficient alone).

Ensuring Transparency, Precision, and Compliance

Avoid ambiguous terms like "clean," "natural," or "safe" that may invite legal challenges, especially for products used by children or applied to skin. Companies must provide scientific evidence, uphold relevant standards, and maintain robust traceability throughout supply chains.

Evolving regulations, particularly in the EU, such as the Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and the proposed Green Claims Directive, require substantiated sustainability claims backed by data.

Conclusion: Strategic Recommendations for Marketing Leaders

1. Clarify the business case by leveraging data on growth rates and price premiums.
2. Amplify product appeal through a balanced, category-relevant messaging mix.
3. Elevate credible claims by focusing on consumer-valued benefits and substantiating claims with evidence.
4. Monitor regulatory developments to ensure compliance and build consumer trust.
5. Develop supply chain traceability to support transparent and reliable sustainability claims.

About the Authors

• Tensie Whelan is Distinguished Professor of Practice at NYU Stern and Founding Director of the NYU Stern Center for Sustainable Business.
• David Linich is a principal at PwC US and an expert in decarbonization and sustainable operations.

Harnessing these insights can help companies unlock sustained growth, build consumer trust, and contribute meaningfully to a more sustainable marketplace.

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.