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

As sustainable products become increasingly popular, companies face challenges in effectively marketing them to consumers. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC reveals strategic approaches to maximizing the appeal and credibility of sustainability claims while driving growth.

Growth Potential of Sustainability-Marked Products

Data from Circana, analyzed by NYU Stern CSB, shows that consumer packaged goods (CPG) marketed for their sustainability features have enjoyed robust sales growth:

• 12.3% average annual growth from 2019 to 2024
• Growth rate is 2.3 times faster than conventional products
• Sustainable products commanded 23.8% of total CPG sales in 2024

Additionally, PwC’s 2024 survey of 20,000 consumers found willingness to pay a 9.7% price premium for sustainable goods. Real-world data indicates sustainable products often carry an even higher premium—26.6% on average, exceeding 100% in certain categories like paper products and around 50% for coffee, cereal, and chocolate.

Marketing Strategies to Realize Full Value

1. Understand Your Customer Segments

• Millennials, college-educated shoppers, urban residents, and high-income consumers are most likely to buy sustainable products.
• Some product categories, such as dairy, show strong appeal for sustainability across all age groups.
• Identifying and targeting these key demographics improves marketing efficiency and product positioning.

2. Integrate Sustainability with Core Product Qualities

Successful marketing pitches emphasize the product’s primary benefit, enhanced by sustainability messages. For example:

• A chocolate bar should highlight its rich taste first, with secondary claims about sustainable sourcing.
• Layering one or two relevant sustainability claims on top of the core product attribute can increase appeal by 30 percentage points.

This approach resonates across customer groups and strengthens brand differentiation.

3. Prioritize Trusted, Consumer-Centric Claims

Research highlights six sustainability claims that consumers find most appealing:

• Protecting human health (free of harmful ingredients)
• Saving money
• Supporting local farms and food systems
• Supporting children and future generations
• Preserving animal health
• Originating from local or sustainable sources

Conversely, claims focused on scientific properties (e.g., biodegradable, climate-neutral), traceability, or certifications often garner less direct consumer appeal, though certifications still help with regulatory validation.

Building Credibility and Navigating Regulations

Marketing sustainable products demands precise claims supported by evidence:

• Vague terms like “clean” or “natural” are vulnerable to legal challenges, especially on products for children or skin application.
• Companies must track evolving regulations, such as the EU’s Corporate Sustainability Reporting Directive and the potential Green Claims Directive, which require scientific substantiation for environmental claims.
• Developing strong value chain traceability and analytical capabilities is crucial to ensure accuracy and compliance.

Conclusion

Sustainable products represent a significant and growing market opportunity with justified premiums. By clearly defining the business case, crafting messages that harmonize core product benefits with trusted sustainability attributes, and substantiating claims rigorously, marketers can unlock the full growth potential of sustainable consumer goods.

Authors:
Tensie Whelan – Distinguished Professor and Founding Director, NYU Stern Center for Sustainable Business
David Linich – Principal, PwC US, Expert in Decarbonization and Sustainable Operations

Reference:
Whelan, T., & Linich, D. (2025). A better way to market sustainable products. s+b. Retrieved June 2025 from [strategy-business.com].

Related Reads:

• How the EU’s Green Deal is Driving Business Reinvention
• Sustainability in Manufacturing: Delivering Net-Positive Returns
• Regenerative Products: Saving the Planet and the Economy

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