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

Consumers now prefer sustainable products. Companies face hard tasks to show growth and win trust amid fierce claims. They must prove growth potential, justify higher prices, balance good quality with green ideas, and stand out amid many certifications.

Growing Market Share and Price Premiums for Sustainable Goods

NYU Stern’s Center for Sustainable Business and PwC studied 12 years of U.S. point-of-sale data. They looked at 36 consumer packaged goods categories. Their data covers about 40% of the market. Their findings show:

• Sales for sustainable products grew by 12.3% each year from 2019 to 2024. That growth is more than twice that of regular products.
• In 2024, sustainable goods made up 23.8% of all sales.
• Consumers are willing to pay extra for green goods. A PwC survey from 2024 found that buyers would pay about 9.7% more on average. Actual price premiums reached 26.6% on average, with some paper goods over 100% and items like coffee and chocolate at 50%.

Strategies for Marketing Leaders to Realize Full Value

1. Understand Your Customer Segments

Studies show that many groups buy sustainably marked goods. Millennials, college-educated people, urban residents, and high-income earners buy these products. In some cases, like dairy, buyers of every age choose sustainable options. Marketers must find and focus on these receptive groups.

2. Amplify Appeal by Connecting Sustainability with Core Product Qualities

Marketing works best when it ties sustainability to the product’s main benefits. Think of it as blending music, where each note matters. Research by CSB and Edelman shows that a clear core benefit—like taste or fragrance—must lead. Then, adding one or two sustainability claims can boost appeal by up to 30 percentage points. For example, skincare products sell more when they say, “sustainable ingredients good for your skin.” This link makes green claims feel real to the buyer.

3. Advance Credible, Consumer-Valued Claims

Consumers react well to clear, direct benefits. They value claims that protect their health by being free of harmful ingredients. They appreciate saves in cost, support for local farms, animal care, help for children and future generations, and sourcing from local or sustainable origins. Generic claims like biodegradability or mere traceability do not work as well unless proof is shown.

4. Ensure Precision, Evidence, and Regulatory Compliance

Words like “clean” or “natural” can bring legal trouble if they are vague. This risk is higher for products used by children or on the skin or in food. Companies must track new rules like the EU’s Corporate Sustainability Reporting Directive and Green Claims Directive. They must prove each claim with science and verifiable data. Solid chain analysis and traceability make buyers trust the product and lower legal risks.

Conclusion

Green-marketed products now form a fast-growing, profitable market segment. To unlock this profit, companies must target the right buyer groups, tie green ideas to the main product strengths, and make clear, proven claims. Following these steps from NYU Stern and PwC gives marketing leaders a clear roadmap. This path helps them meet strong green demand, win consumer trust, and follow tight new rules.

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

Source: Strategy+Business, May 21, 2025
https://www.strategy-business.com/article/A-better-way-to-market-sustainable-products

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