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

Companies sell consumer packaged goods. They face a challenge. Marketing sustainability can be hard. Consumers seek green products. NYU Stern’s Center for Sustainable Business and PwC lead research. Their work shows clear ways to serve this growing market.

Strong Growth and Price Premiums for Sustainability-Market Products

• Market Performance:
Data from Circana spans 12 years in the U.S. The data tracks point-of-sale records. CSB finds that sustainability-marketed products grow about 12.3% per year from 2019 to 2024. This rate is more than twice that of ordinary goods.

• Market Share:
By 2024, sustainable items make up nearly 24% of all sales. These items span 36 categories and cover about 40% of the market.

• Price Premium:
PwC’s 2024 survey shows buyers pay about 9.7% more for sustainable products. CSB finds that premiums average 26.6%. Some items, such as paper products, see over 100% more. Coffee, cereal, and chocolate earn around 50% more.

Effective Marketing Approaches to Amplify Sustainable Products

1. Target the Right Customer Segments

Studies show clear links. Millennials, college graduates, urban dwellers, and high earners choose sustainable products most. Some product groups, like dairy, attract buyers from all groups.

2. Combine Core Product Attributes with Select Sustainability Claims

Marketers must build messages clearly. They start by showing a strong product benefit like taste, scent, or efficacy. They add one or two specific sustainability claims. This step can boost appeal by about 30 percentage points. For example, skincare products pair benefits with claims such as “made with sustainable ingredients that are gentle on your skin.”

3. Prioritize Credible, Consumer-Centric Claims

Consumers trust claims that give clear benefits. They value claims that protect health, save money, and support local farms. Claims that help future generations, preserve animal health, or come from local sources work well.
Claims built on scientific keywords like biodegradability or climate neutrality do not work as well on their own. Packaging details help only when they mention all-recycled content. Certifications add trust but must also back up the claim.

Ensuring Trust Through Precision and Evidence

Marketers must avoid vague words. Words like “clean” or “natural” can be risky. They may lead to legal issues, especially for children’s products or skin items.
Rules change fast. The EU now has a Corporate Sustainability Reporting Directive. A Green Claims Directive is also proposed. These rules need clear proof for every environmental claim.
Brands build trust when they show clear steps in value chain analysis and traceability.

Conclusion

Brands need a clear case for sustainability. They must understand their target consumers. They also need to connect sustainability and product benefits. Clear, evidence-based claims boost credibility. With careful messaging and strong evidence, brands can capture the demand for sustainable goods and enjoy both growth and price premiums.

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

Sources:

• NYU Stern Center for Sustainable Business research based on Circana data (2019-2024)
• PwC 2024 consumer willingness-to-pay survey
• CSB and Edelman communications research

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.