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

Consumers show a growing interest in sustainable products. Many companies struggle to tap full market promise. NYU Stern’s Center for Sustainable Business and PwC offer clear strategies. These strategies drive growth, justify higher prices, and build trust.

The Business Case for Sustainability in Consumer Goods

CSB studied 12 years of US point-of-sale data. Their data shows sustainable products grow sales by nearly 12.3% each year from 2019 to 2024. This growth rate more than doubles that of conventional products. By 2024, these products account for 23.8% of total consumer packaged goods sales in 36 categories.

PwC’s 2024 survey asked 20,000 consumers about price premiums. Respondents showed willingness to pay nearly 10% more for sustainable products. Yet, CSB found actual premiums average 26.6%. In some cases, paper products exceed 100% and coffee, cereal, and chocolate near 50%.

Key Actions to Maximize the Value of Sustainable Products

1. Understand Customer Segments and Product Categories

Millennials, college-educated buyers, urban dwellers, and high-income consumers often choose sustainable products. Some categories, such as dairy, appeal to all ages. Companies must target the best customer groups.

2. Harmonize Sustainability with Core Product Qualities

Successful marketing brings sustainability close to a product’s core features. Chocolate must satisfy with taste, and skincare should highlight its benefits. Research from Edelman shows one main attribute claim combined with one or two sustainability claims can lift appeal by 30 percentage points. This method also strengthens brand positions.

3. Prioritize Sustainability Claims That Resonate and Build Trust

Claims that show clear benefits score highest. They include:

• Protecting human health by avoiding harmful ingredients
• Saving money
• Supporting local farms and food systems
• Helping children and future generations
• Keeping animals healthy
• Using local or sustainable sources

Claims that focus only on science (such as biodegradable or climate-neutral), traceability, or certifications tend to have less appeal. Certifications help, but require extra clear messaging to boost impact.

4. Use Precise, Evidenced-Based Claims to Avoid Legal Risks

Vague terms like “clean,” “natural,” or “safe” face legal risks. This is especially true for products used by children or applied to the skin. Companies must follow evolving rules such as the EU’s Corporate Sustainability Reporting Directive and the proposed Green Claims Directive. These rules require proof with scientific evidence and international standards. Enhancing value chain analysis and product traceability will help meet these rules and maintain customer trust.

Conclusion

Sustainable products reach their full potential when companies build clear business cases and craft appealing, trustworthy messages. Marketing should link sustainability closely with product benefits and back claims with evidence. Insights from CSB and PwC guide leaders to tackle complexity, differentiate brands, and drive eco-friendly growth in a green consumer market.

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

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.