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

Sustainability is increasingly influencing consumer purchasing decisions, yet marketing sustainable products effectively remains challenging for many companies. Research from NYU Stern’s Center for Sustainable Business (CSB) in collaboration with PwC highlights strategies that can help brands unlock the full potential of sustainable products by clarifying the business case, enhancing appeal, and building trust in sustainability claims.

The Growing Market for Sustainable Products

• Strong Sales Growth: Analyzing 12 years of US retail data across 36 consumer packaged goods (CPG) categories, CSB research found that products marketed on sustainability features grew at an average annual rate of 12.3% from 2019 to 2024 — more than double the growth of conventional products.
• Market Share Expansion: Sustainability-marketed goods accounted for nearly 24% of overall CPG sales in 2024.
• Price Premiums: Consumers demonstrate willingness to pay more for sustainable products. In a 2024 PwC survey of 20,000 consumers, respondents said they would pay 9.7% higher prices on average. Real-world data reveals an average price premium of 26.6%, with some categories (like paper products) exceeding 100%, and others (coffee, cereal, chocolate) around 50%.

Key Strategies to Maximize Sustainable Product Success

1. Understand Customer Segments and Product Categories

Certain demographics—millennials, urban residents, college-educated, and higher-income consumers—are more inclined to buy sustainable products. Additionally, categories like dairy show wide adoption of sustainability-marketed goods across age groups. Tailoring marketing efforts to target these segments can leverage growth opportunities effectively.

2. Amplify the Product’s Core Appeal with Sustainability Messages

Successful marketing pitches anchor around central product qualities (e.g., taste, effectiveness) and layer in one or two focused sustainability messages. Research by CSB and Edelman indicates this blend enhances product appeal by 30 percentage points on average. For instance, skincare products perform well when sustainability claims link directly to product benefits, such as being “formulated with sustainable ingredients that are good for your skin.”

3. Focus on Credible, Consumer-Relevant Sustainability Claims

Customers respond more favorably to sustainability claims emphasizing:

• Protection of human health (free from harmful ingredients)
• Cost savings
• Support for local farms and food systems
• Benefits for children and future generations
• Animal health preservation
• Use of local or sustainable sources

Less impactful claims involve scientific properties like biodegradability or carbon neutrality, traceability, general packaging claims (except for all-recycled content), and broad sustainability certifications. Certifications serve as validation but require supplementary appealing messaging.

4. Prioritize Precision and Evidence in Claims

Ambiguous terms like “natural” or “safe” risk legal challenges, especially for products affecting children or applied to skin. Companies should monitor evolving regulations, such as the EU’s Corporate Sustainability Reporting Directive and the forthcoming Green Claims Directive, which mandate rigorous evidence for environmental claims. Building expertise in value chain analysis and traceability is crucial to comply and maintain consumer trust.

Conclusion: Building Sustainable Brands with Clarity and Trust

The research from NYU Stern CSB and PwC underscores that sustainable product marketing demands a careful balance of authentic messaging, customer insight, and credible proof. Brands that connect sustainability to core product attributes, target the right consumers, and substantiate claims with transparency stand to benefit from stronger growth, premium pricing, and loyal customer bases.

About the Authors:
Tensie Whelan is Distinguished Professor of Practice at NYU Stern and Founding Director of the Stern Center for Sustainable Business. David Linich is a sustainability and decarbonization expert and principal at PwC US.

Sources:

• NYU Stern Center for Sustainable Business
• PwC Consumer Survey 2024
• Circana US Point-of-Sale Data (2012–2024)
• CSB and Edelman Communications Research

For marketers and business leaders committed to sustainability, these insights provide actionable guidance to lead in the evolving, green-conscious consumer marketplace.

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