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

Sustainable products gain favor quickly with buyers. Companies face hurdles when they try to market these goods. NYU Stern’s Center for Sustainable Business (CSB) and PwC show clear steps to fix these issues. Their work helps reveal the value in sustainability for consumer packaged goods.

The Business Case for Sustainable Products: Proven Growth and Premium Pricing

• Strong Sales Growth: NYU Stern CSB studied 12 years of US sales data. They found that sustainability products grew at 12.3% annually from 2019 to 2024. This rate is more than twice that of regular products.

• Market Share: By 2024, sustainability-marketed products made up 23.8% of total sales. They held roughly 40% of the market for consumer packaged goods (CPG), when alcohol and tobacco were not counted.

• Price Premiums: PwC asked 20,000 consumers to join a 2024 survey. They were willing to pay nearly 10% more for sustainable goods. Market data showed an average premium of 26.6%. In some categories, like paper products, premiums reached over 100%, while coffee, cereal, and chocolate scored about 50%.

Key Actions to Unlock Value in Sustainable Product Marketing

1. Target Customer Segments with the Highest Engagement

• Millennials, college graduates, urban dwellers, and wealthier buyers show more interest.
• Dairy, for example, appeals to many age groups.
• Knowing these details helps firms design clear and direct messages.

2. Blend Sustainability with Core Product Attributes

• Good marketing is like a hit song. It links a product’s best features with sustainability.
• CSB and Edelman found that tying sustainability claims to key benefits (taste, cleanliness, quality) helps.
• One or two sustainability points, when paired with a strong core feature, can boost appeal by up to 30 percentage points.
• For example, a skincare product that says it uses “sustainable ingredients” ties well to its skin benefits.

3. Focus on Sustainability Claims That Build Trust and Consumer Value

• The best claims say that the product protects health, saves money, supports local farms, and cares for future generations.
• Claims about animal health and local sourcing also work well.
• Technical details, like biodegradability or traceability, are less engaging.
• Certification seals add trust but work best when paired with clear, simple language.

4. Ensure Precision and Substantiation of Sustainability Claims

• Labels such as “clean,” “natural,” or “safe” can be risky.
• Such labels are challenged, especially for items used on skin or by children.
• Businesses should watch rules like the EU’s Corporate Sustainability Reporting Directive.
• Doing deep value chain reviews and tracking every step makes claims solid and true.

Conclusion

Research by NYU Stern CSB and PwC shows that sustainable products offer a growing market and better pricing. Companies must know their buyers well. They should link sustainability to a product’s key strengths. They must use clear, trusted claims and back them with strong proof. This way, they meet strict new rules and keep growing profits.

By following these steps, consumer goods companies can market sustainable products well, build trust with customers, and support wider eco-friendly goals.

About the Authors

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

For sustainable product marketers who need clear and actionable advice, this research lays out a simple plan. It connects firms honestly with today’s eco-aware consumers.

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.