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

Sustainable products are increasingly capturing consumers’ interest, yet converting this green preference into profitable growth remains complex for consumer product companies. Research conducted by NYU Stern’s Center for Sustainable Business (CSB) in partnership with PwC highlights effective strategies for marketing sustainable goods that resonate with customers and deliver business value.

Growing Market for Sustainable Products

• Sales Growth: Analysis of 12 years of U.S. retail data across 36 consumer packaged goods (CPG) categories showed sustainability-marketed products grew at an annual rate of 12.3% from 2019 to 2024, more than double the 5.3% growth of conventional items.
• Market Share: By 2024, sustainability-focused goods accounted for nearly 24% of total sales in these categories.
• Price Premium: A 2024 PwC survey of 20,000 consumers revealed a willingness to pay on average 9.7% more for sustainably produced or sourced products. Actual premiums observed were even higher, averaging 26.6% above conventional products—with some categories like paper products commanding premiums over 100%, and others like coffee, cereal, and chocolate around 50%.

Effective Marketing Approaches

1. Clarify the Business Case

Knowing customer demographics is critical. Millennials, college-educated shoppers, urban residents, and high-income consumers are more inclined to buy sustainability-marketed items. Notably, certain categories such as dairy see significant sustainable product sales across all age groups. Tailoring marketing strategies to these groups helps maximize impact.

2. Amplify Product Appeal by Linking Sustainability to Core Qualities

Marketing messages that blend the product’s main benefit with sustainability attributes perform best. For instance, a chocolate bar promoted for rich taste alongside two well-chosen sustainability claims substantially increases consumer appeal (by about 30 percentage points). Effective combinations resonate across customer types.

Action Tip: Connect sustainability benefits directly to what customers value most about the product. For skincare, messaging framing “sustainable ingredients good for your skin” aligns ethical appeal with product efficacy.

3. Advance Credible and Consumer-Valued Claims

Survey data show consumers respond most positively to claims emphasizing:

• Protection of human health (absence of harmful ingredients)
• Cost savings
• Support for local farms and communities
• Benefits for children and future generations
• Animal welfare
• Sustainable and local sourcing

Less persuasive were claims focusing on biodegradability, climate neutrality, traceability, packaging (except for 100% recycled content), or certifications alone.

Important: Certifications validate claims but must be supplemented with clear, relatable messaging to boost appeal.

Integrity and Compliance in Sustainability Claims

• Avoid Ambiguity: Vague terms like “clean,” “natural,” or “safe” can invite legal challenges, especially for products used by children or applied to skin.
• Monitor Regulations: Companies should stay abreast of evolving laws like the EU Corporate Sustainability Reporting Directive and the forthcoming EU Green Claims Directive, which will require scientific substantiation of environmental claims.
• Invest in Traceability: Robust value chain analysis enhances claim credibility and ensures compliance with tightening standards.

Conclusion

For sustainable products to thrive, marketing must go beyond greenwashing to strategically integrate credible sustainability messages with compelling product attributes. Aligning these elements fosters consumer trust, supports premium pricing, and drives growth in a competitive marketplace increasingly shaped by environmental and social values.

About the Authors

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

Sources: NYU Stern Center for Sustainable Business and PwC joint research report, Circana retail data analysis, PwC consumer surveys (2024).

For more insights on sustainable marketing and product innovation, subscribe to our newsletter and stay informed on the latest trends in organic and sustainable products.

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.