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

Sustainability in consumer products is more than a trend—it’s a proven growth driver. However, effectively marketing sustainable goods remains a challenge for many companies. Research by NYU Stern’s Center for Sustainable Business (CSB) in collaboration with PwC offers data-backed strategies to unlock the full potential of sustainability in product marketing.

The Business Case for Sustainable Products

• Sales Growth: Analysis of 12 years of US point-of-sale data across 36 categories shows that products marketed for sustainability grew at a compound annual rate of 12.3% from 2019 to 2024, more than double the rate of conventional products.
• Market Share: By 2024, sustainability-marketed items accounted for nearly 24% of overall sales in those categories.
• Price Premium: Consumers are willing to pay a premium for sustainable goods. A PwC survey of 20,000 consumers in 2024 found an average willingness to pay 9.7% more, while actual price premiums averaged 26.6%, reaching over 100% in paper products and about 50% for coffee, cereal, and chocolate.

Customer Segmentation: Knowing Your Audience

Sustainability purchases skew towards particular groups:

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

Awareness of these demographics, as well as category-specific behaviors (e.g., strong sustainable dairy sales across age groups), enables marketers to tailor strategies effectively.

Crafting Compelling Sustainability Messages

Successful marketing blends sustainability claims with core product benefits:

• Effective pitches focus on a primary product attribute (taste, fragrance, performance).
• Adding one or two sustainability-related messages enhances brand appeal by up to 30 percentage points across all consumer groups.
• Example: In skincare, linking “sustainable ingredients” directly to skin benefits resonates strongly.

Which Sustainability Claims Resonate?

Research shows certain sustainability claims attract more consumer trust and appeal:

• Benefits to human health (no harmful ingredients)
• Cost savings
• Support for local farms and food systems
• Protecting children and future generations
• Preserving animal health
• Sourcing from local or sustainable origins

Conversely, claims about biodegradability, climate neutrality, traceability, or certifications alone are less impactful, though certifications can validate claims for regulators.

Ensuring Credibility: Precision and Evidence

• Avoid vague terms like "clean," "natural," or "safe," which often face legal challenges—especially for sensitive products such as those used by children.
• Keep up with evolving regulations such as the EU Corporate Sustainability Reporting Directive and the potential EU Green Claims Directive, which require scientific substantiation for environmental claims.
• Develop strong value chain analysis and product traceability capabilities to support trustworthy claims and future-proof marketing.

Conclusion

Sustainable products offer robust market opportunities with growth and pricing advantages. Marketers can maximize value by:

• Identifying key customer segments
• Integrating sustainability with core product strengths
• Focusing on trusted, consumer-relevant claims
• Backing messages with credible data and evidence to build trust and comply with regulations

With these evidence-based strategies, sustainable product marketing can move from well-intentioned to truly effective—driving both environmental benefits and business success.

About the Authors
Tensie Whelan is Distinguished Professor of Practice and Founding Director of NYU Stern’s Center for Sustainable Business. David Linich is a principal at PwC US specializing in decarbonization and sustainable operations.

Source:
Whelan, T., & Linich, D. (2025). A better way to market sustainable products. NYU Stern Center for Sustainable Business & PwC.
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