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

Sustainable products continue to gain traction among consumers, yet many companies struggle to harness this demand effectively. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC outlines strategic approaches to unlock growth and credibility in marketing sustainability.

The Growing Business Case for Sustainability

• Sales Growth: From 2019 to 2024, sustainability-marketed consumer product sales grew at an impressive 12.3% annually, outpacing conventional products by over double. By 2024, these products captured nearly 24% of total market sales in key categories.
• Price Premiums: Consumers express willingness to pay higher prices for sustainable goods—PwC’s 2024 survey of 20,000 individuals found an average premium of 9.7%. Empirical data from CSB shows actual premiums averaging 26.6%, with some categories like paper products exceeding 100%.

Key Takeaway:

Sustainability is not just ethically important but commercially viable, delivering both sales growth and premium pricing opportunities.

Targeting the Right Consumers

• Core demographics for sustainable products include millennials, college-educated shoppers, urban dwellers, and high-income earners.
• Significant sales of sustainability-marketed products appear in categories such as dairy across diverse age groups.

Action Point: Identifying and focusing on these customer segments within your specific product categories is crucial for maximizing impact.

Crafting Effective Marketing Messages

• The most successful marketing pitches anchor on a product’s core attribute (e.g., taste, effectiveness) and enhance appeal by layering in one or two sustainability claims.
• Research by CSB and Edelman reveals this combination can boost a product’s appeal by approximately 30 percentage points.

Example: In skincare, linking “sustainably sourced ingredients” to “good for your skin” resonates deeply, merging sustainability with desired product benefits.

Sustainability Claims That Resonate and Build Trust

Consumers assign high appeal to claims that emphasize direct benefits such as:

• Protecting human health (free of harmful ingredients)
• Cost savings
• Supporting local farms and food systems
• Safeguarding future generations and children
• Animal welfare
• Local or sustainable sourcing

Less effective claims involve:

• Scientific properties alone (e.g., biodegradable)
• Supply chain traceability
• Packaging claims (except all-recycled content)
• Certification seals (helpful for validation but insufficient alone)

Action Point: Prioritize clear, consumer-relevant claims backed by evidence to build credibility.

Navigating Regulatory and Legal Landscape

• Ambiguous or generic claims like “natural” or “safe” are vulnerable to legal challenges, especially for products used by children or applied to skin.
• Regulatory frameworks such as the EU Corporate Sustainability Reporting Directive, Due Diligence Directive, and proposed Green Claims Directive demand robust, scientifically supported sustainability claims.

Strategic Advice: Develop strong value chain transparency and traceability to support claims and comply with evolving regulations.

Conclusion

Marketing sustainable products successfully requires:

1. Clarifying the business opportunity with data on growth and premiums.
2. Targeting precise consumer segments receptive to sustainability.
3. Integrating sustainability claims with product benefits to heighten appeal.
4. Backed by credible, evidence-based messaging aligned with regulatory guidelines.

These principles, grounded in extensive research by NYU Stern CSB and PwC, provide companies with actionable strategies to leverage sustainability as a compelling growth driver in today’s competitive marketplace.

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

For companies committed to sustainable product innovation and marketing, adopting a data-driven, consumer-focused approach can unlock both environmental impact and business success.

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.