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.
[Link to original article]

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.