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

The Growing Opportunity in Sustainable Consumer Goods

Sustainable products have seen significant growth, reflecting increasing consumer preference for environmentally and socially responsible options. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC highlights:

• Sales Growth: Sustainability-marketed products grew at an average annual rate of 12.3% from 2019 to 2024, outperforming conventional goods by more than double.
• Market Share: These products attained a 23.8% share of the consumer packaged goods (CPG) market by 2024.
• Price Premiums: Consumers show willingness to pay nearly 10% more for sustainable goods, with actual premiums averaging 26.6%, and in some categories like paper products exceeding 100%.

This trend confirms the business case for investing in sustainable product development and marketing.

Key Customer Segments Driving Sustainability Sales

Certain demographics show stronger demand for sustainable products:

• Millennials
• College-educated consumers
• Urban dwellers
• High-income earners

However, sustainability-marketed products also command significant sales across broader demographics, including widespread appeal in categories such as dairy.

Crafting Effective Sustainability Messaging

Marketing leaders can enhance the appeal of sustainable products by:

• Centering the pitch on a core attribute: Focus on primary product qualities consumers value (e.g., taste, efficacy).
• Layering 1-2 sustainability claims: Adding relevant sustainability messages on top of core attributes boosts product appeal by up to 30 percentage points.

For maximum impact, sustainability claims should directly relate to product-specific attributes that resonate with target consumers. For example, skincare products benefit from claims like “formulated with sustainable ingredients that are good for your skin.”

Prioritizing Credible and Consumer-Valued Claims

Research identifies six sustainability messages with strong consumer appeal related to tangible benefits:

1. Protecting human health (free from harmful ingredients)
2. Saving money
3. Supporting local farms and food systems
4. Benefiting children and future generations
5. Preserving animal health
6. Originating from local or sustainable sources

Less effective claims involve scientific properties (e.g., biodegradability), packaging claims (except all-recycled content), and general sustainability certifications—though certifications still help validate claims for regulators and some consumer segments.

Legal and Regulatory Considerations

Clear, precise, and evidence-based sustainability claims are essential to avoid legal challenges, especially for products used by vulnerable groups (children, skin-applied, ingestibles). Emerging regulations such as the EU’s Corporate Sustainability Reporting Directive and the prospective Green Claims Directive will require companies to substantiate environmental claims with scientific evidence and adhere to international standards.

Building strong supply chain traceability and value chain analysis capabilities will be crucial for compliance and credibility.

Strategic Takeaways for Marketers

1. Clarify the business case: Leverage data demonstrating growth and price premiums to justify sustainable product investments.
2. Know your audience: Identify and prioritize customer segments with higher sustainable product affinity.
3. Craft compelling messages: Connect sustainability attributes directly with core product benefits that consumers care about.
4. Enhance credibility: Use precise, evidence-backed claims and certifications where applicable.
5. Stay compliant: Monitor evolving regulations to mitigate risk and maintain consumer trust.

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

References:

• 12 years of US point-of-sale data by Circana (excluding alcohol and tobacco)
• PwC 2024 consumer survey on willingness to pay for sustainability
• CSB and Edelman research on messaging effectiveness
• EU sustainability regulatory framework updates as of February 2025

For marketers committed to sustainable products, aligning product development, messaging, and compliance strategies is key to unlocking growth and solidifying consumer trust in an increasingly green-conscious 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.