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

As consumer interest in sustainable products grows, companies face challenges in effectively marketing these goods to capture growth and justify premium pricing. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC offers evidence-based strategies for marketing sustainable products that resonate with customers and unlock full value.

The Growth Opportunity in Sustainable Products

• Sales Growth: Sustainability-marketed products grew by an average of 12.3% annually from 2019 to 2024, outpacing conventional products by over two times.
• Market Share: By 2024, these products accounted for 23.8% of total consumer packaged goods (CPG) sales across 36 categories.
• Price Premiums: Consumers show a clear willingness to pay more, with a PwC survey finding a 9.7% average premium, and CSB research documenting an actual premium of 26.6%—exceeding 100% for some paper products and around 50% for coffee, cereal, and chocolate.

Strategic Approaches to Marketing Sustainable Products

1. Clarify the Business Case

• Understand which customer segments are most likely to purchase sustainable goods. Millennials, college-educated shoppers, urban dwellers, and higher-income consumers tend to buy more sustainability-marketed products.
• Recognize that some categories, such as dairy, show broad sustainable product adoption across age groups.
• Leverage category-specific insights to tailor marketing approaches effectively.

2. Amplify the Appeal Through Messaging

• Successful marketing combines a core product attribute (e.g., taste, scent, performance) with one or two well-chosen sustainability messages.
• Research shows adding up to two sustainability claims alongside the core attribute can increase product appeal by 30 percentage points.
• Align sustainability messages closely with attributes that matter in the product’s category: for example, “formulated with sustainable ingredients good for your skin” is effective for skincare.

3. Focus on Trusted, Consumer-Relevant Claims

• Claims that highlight consumer benefits—such as protecting human health, saving money, supporting local farms, preserving animal health, and ensuring product origins—are most appealing.
• Less effective are claims focused solely on scientific properties (biodegradability, climate-neutral), traceability, or certifications without additional context.
• Certification seals aid credibility but need to be paired with clear, relatable messages.

Navigating Regulatory and Legal Considerations

• Ambiguous terms like “natural” or “safe” carry legal risk and are frequently challenged, particularly for products used by children or applied to the skin.
• Companies must monitor evolving regulations, such as the EU’s Corporate Sustainability Reporting and Due Diligence Directives and the pending Green Claims Directive, which require scientific substantiation for environmental claims.
• Building robust capabilities in value chain analysis and traceability is vital to ensure compliance and maintain consumer trust.

Key Takeaways for Marketers

• Recognize the sizable and growing market for sustainability-marketed products, supported by consumer willingness to pay meaningful premiums.
• Craft marketing narratives that harmonize product performance with clear, relatable sustainability benefits.
• Prioritize transparency and precision in sustainability claims to build consumer trust and mitigate legal risk.
• Stay ahead of regulatory changes and invest in traceability mechanisms to sustain brand credibility.

Authors and Sources

This summary is based on research by Tensie Whelan, Distinguished Professor and Founding Director of NYU Stern Center for Sustainable Business, together with David Linich, Principal at PwC US specializing in decarbonization and sustainable operations. Data comes from US point-of-sale insights by Circana and consumer surveys conducted by PwC in 2024. —

Why This Matters

As sustainability becomes a decisive factor in consumer purchasing, companies that adopt these practical marketing strategies will be better positioned to drive growth, command premiums, and build lasting brand value in an increasingly eco-conscious market.

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.