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

The Growing Demand and Market Potential for Sustainable Products

Recent research by NYU Stern’s Center for Sustainable Business and PwC shows a clear chance for consumer product companies. Sustainability drives the market. Companies see that products with sustainable claims sell better. These sustainable products now grow faster than conventional ones.

• Sales Growth: From 2019 to 2024, sustainable products grew at a 12.3% annual rate. They grew twice as fast as conventional products.
• Market Share: In 2024, sustainable goods made up nearly 24% of overall sales across 36 product categories. They covered about 40% of the consumer-packaged goods market (alcohol and tobacco are not counted).
• Price Premiums: Consumers will pay about 9.7% more for these goods. In reality, the extra price averages 26.6%. Premiums exceed 100% for paper products and about 50% for coffee, cereal, and chocolate.

Key Strategies for Marketing Sustainable Products Effectively

1. Clarify the Business Case Through Customer Segmentation

Different consumers value sustainability in their own ways. Research shows that millennials, college-educated shoppers, urban dwellers, and high-income consumers buy sustainable products the most. Yet, many age groups choose these items, especially in key areas like dairy.

Action Point: Identify and target customer segments that favor sustainability in your brand’s categories. This approach will help you reach the right buyers.

2. Amplify Appeal by Combining Core Product Attributes with Sustainability Messages

Marketers must mix a product’s strong qualities with clear sustainability benefits. This strategy is like setting up a popular song. First, choose a core attribute such as great taste or strong cleaning power. Then, add one or two sustainability claims that match consumer needs.

This mix lifts product appeal by about 30 percentage points across many groups.

Action Point: Connect sustainability claims directly to product benefits. For example, skincare products might say, “Made with sustainable ingredients that benefit your skin.”

3. Promote Credible and Consumer-Valued Sustainability Claims

Not every sustainable claim is equal. Research shows that clear messages about protecting health, saving money, supporting local farms, benefiting future generations, helping animal well-being, and using local or sustainable sources work best. Claims about biodegradability, climate neutrality, traceability, or broad environmental certifications work less well. Still, certification seals have a supportive role.

Action Point: Use precise and evidence-backed claims that consumers find trustworthy.

Navigating Legal and Regulatory Considerations

Words like “clean,” “natural,” or “safe” can raise legal challenges. This risk is higher for products for children or skin care. Companies must watch evolving rules. They need to follow the EU Corporate Sustainability Reporting Directive and the Due Diligence Directive. These rules demand a look at environmental and social impacts along value chains. An upcoming EU Green Claims Directive may require scientific evidence for environmental claims. Companies must build robust analysis and traceability systems to support and defend their claims.

Conclusion

Businesses that invest in sustainable product development must use smart, well-targeted marketing strategies. By clarifying the business case, crafting clear, credible messages, and following evolving standards, companies can unlock the power of the green market. This strategy boosts both consumer trust and profitability.

Author Profiles:
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 specializing in decarbonization and sustainable operations.

Source data from NYU Stern CSB research and PwC consumer surveys conducted in 2024, based on 12 years of US point-of-sale data across major consumer packaged goods categories.

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.