Research Confirms: Labeling Products as Sustainable Boosts Sales

As global consumer demand for eco-friendly products rises, retailers increasingly use sustainability labels to highlight environmentally responsible items. Prominent examples include Amazon’s “Climate Pledge Friendly,” Target’s “Target Zero,” and Wayfair’s “Shop Sustainably” badges. But do these labels genuinely influence purchasing behavior?

The Study and Its Findings

A recent research article published by Harvard Business Review, authored by Caroline Wang (PhD candidate, Northwestern University) and Sherry He (Assistant Professor of Marketing, Michigan State University), explored the relationship between sustainability labeling and sales performance.

Their investigation reveals a clear trend: products labeled as sustainable see better sales outcomes compared to unlabeled counterparts. By providing shoppers with transparent, credible information on a product’s environmental impact, these labels increase consumer confidence and encourage greener purchases.

Why Sustainability Labels Matter

• Enhanced Visibility: Shoppers gain quick insight into which products meet environmental standards without extensive research.
• Trust Building: Third-party certifications assure buyers of authenticity, reducing skepticism around “greenwashing.”
• Consumer Demand Alignment: Eco-conscious consumers actively seek and prefer products identified through sustainability labels.

Implications for Retailers and Brands

This evidence advises brands and sellers to integrate clear, verified sustainability labeling within their marketing strategies. Doing so not only supports environmental goals but also drives stronger market performance amid shifting consumer preferences.

This study reaffirms that transparent communication about sustainability is both an ethical imperative and a competitive advantage in today’s marketplace. For businesses aiming to thrive sustainably, adopting and promoting trustworthy eco-labels is a proven tactic for meeting growing consumer demand and boosting sales.

Source: Wang, C., & He, S. (2025). Research: Products Labeled as Sustainable Sell Better. Harvard Business Review.

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.