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

The Growing Potential of Sustainable Products in Consumer Markets

Sustainability increasingly shapes consumer preferences, with many shoppers favoring eco-friendly products over conventional alternatives. However, companies often grapple with demonstrating that sustainable products offer both significant growth opportunities and justified price premiums to warrant investment.

Key Market Data and Trends

• Sales Growth: According to a 12-year analysis by NYU Stern’s Center for Sustainable Business (CSB), using data from Circana, sustainability-marketed consumer goods grew at an annual rate of 12.3% from 2019 to 2024, surpassing the growth of conventional products by 2.3 times.
• Market Share: These products accounted for 23.8% of total consumer packaged goods (CPG) sales in 2024 across 36 categories.
• Price Premiums: PwC’s 2024 consumer survey revealed shoppers’ willingness to pay an average premium of 9.7% for sustainably produced items. Actual retail data showed that average price premiums reached 26.6%, exceeding 100% in some paper product categories, and around 50% for coffee, cereal, and chocolate.

Strategic Marketing Actions for Sustainable Products

1. Understand Customer Segments and Category Reach

• Demographics including millennials, college-educated shoppers, urban residents, and higher-income consumers are most inclined to purchase sustainability-marketed goods.
• Certain categories such as dairy show broad appeal of sustainable products across all age groups.
• Knowing which consumer groups within your product categories prioritize sustainability is crucial for targeted marketing.

2. Amplify Product Appeal by Linking Sustainability to Core Attributes

• Research by CSB and Edelman indicates that effective marketing blends a product’s core desirable attribute (taste, scent, effectiveness) with one or two sustainability messages to enhance brand positioning.
• For example, skincare products marketed as “formulated with sustainable ingredients that are good for your skin” link sustainability directly to consumer benefits.
• This mix can boost product appeal by 30 percentage points on average, resonating across diverse consumer segments.

3. Promote Sustainable Claims That Consumers Value and Trust

Consumer research highlights six sustainability claims with high appeal:

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

In contrast, claims focused solely on scientific properties (biodegradability, climate neutrality), traceability, or certification seals are less effective for broad consumer appeal—although certifications remain important for regulatory validation.

4. Ensure Precision and Evidence-Based Claims

• Avoid ambiguous claims like “clean,” “natural,” or “safe,” which face frequent legal challenges, especially in products used by children or applied to skin.
• Stay abreast of evolving regulations such as the EU’s Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and proposed Green Claims Directive, which require substantiating environmental claims with scientific evidence and standards.
• Invest in strong value chain analysis and traceability capabilities to support transparent, credible sustainability messaging.

Conclusion: Unlocking the Value of Sustainability Marketing

The collaboration between NYU Stern’s CSB and PwC offers a roadmap for companies to more effectively market sustainable products. By clearly articulating the business potential, tailoring messages to customer values, and rigorously substantiating claims, brands can harness rising consumer demand, command premium pricing, and contribute meaningfully to sustainable commerce.

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

For marketers in organic and sustainable product sectors, integrating these research-backed strategies can strengthen consumer trust, increase sales, and deliver long-term brand value while advancing environmental goals.

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.