A Better Way to Market Sustainable Products

By Tensie Whelan and David Linich, May 21, 2025
Insights from NYU Stern’s Center for Sustainable Business and PwC

Why Marketing Sustainable Products Is Challenging

Despite growing consumer preference for sustainable goods, companies struggle to fully capitalize on this green demand due to:

• Difficulty proving sustainable products drive growth and justify premium pricing.
• Balancing sustainability features with other valued product qualities.
• Gaining customer trust amid complex and sometimes confusing sustainability claims, labels, and certifications.

Growth and Price Premiums of Sustainable Products

Research based on 12 years of U.S. sales data from Circana, analyzed by NYU Stern’s Center for Sustainable Business (CSB), highlights strong trends:

• From 2019 to 2024, products marketed for sustainability grew at a robust 12.3% annually — more than double the growth rate of conventional products.
• In 2024, sustainability-marketed items accounted for 23.8% of consumer packaged goods (CPG) sales (excluding alcohol and tobacco).
• Consumer willingness to pay a premium for sustainable goods averaged 9.7%, according to a 2024 PwC survey involving 20,000 participants.
• Actual price premiums are often significantly higher—averaging 26.6%, with some categories like paper products commanding over 100% premiums, and coffee, cereal, and chocolate around 50%.

Principles for Effective Sustainable Product Marketing

1. Clarify the Business Case

• Identify which consumer groups lead sustainable product purchases. Millennials, the college-educated, urban dwellers, and high-income earners are key demographics.
• Recognize product categories where sustainability drives significant sales across all ages (e.g., dairy).

2. Amplify Sustainability’s Appeal by Connecting It to Core Product Qualities

• Successful pitches blend standout product attributes (taste, cleanliness, effectiveness) with one or two sustainability messages for stronger impact.
• For example, in skincare: “Formulated with sustainable ingredients that are good for your skin” links sustainability directly to product benefits.
• This approach increases product appeal by about 30 percentage points consistently across customer segments.

3. Focus on Consumer-Valued and Trusted Claims

• High-appeal sustainability claims emphasize benefits to human health (absence of harmful ingredients), cost savings, support for local farms, animal welfare, and benefits for future generations.
• Less effective are claims centered solely on scientific properties (biodegradability, climate neutrality), traceability, packaging (except all-recycled content), or certification seals without further context.
• Certification seals validate claims but need complementary messaging to boost customer appeal.

4. Ensure Precision and Evidence in Claims

• Generic terms like “clean,” “natural,” or “safe” risk legal challenges, especially for products used by children or applied to the skin.
• Regulations are tightening globally—especially in the EU—requiring substantiation of environmental and social claims through scientific evidence and supply chain traceability.
• Proactively developing capabilities in value chain analysis and traceability will help companies meet evolving compliance demands and maintain consumer trust.

Strategic Takeaways for Marketers

• Know Your Audience: Tailor sustainable product offerings and messaging to the demographics most likely to purchase them.
• Integrate Sustainability with Product Benefits: Sustainability messages must complement and enhance the product’s core qualities to resonate.
• Build Credibility: Back claims with concrete evidence and stay abreast of regulatory changes to avoid legal pitfalls.
• Leverage Price Premium Potential: Sustainable products can command strong price premiums, justifying continued investment.

Conclusion

The combined expertise of NYU Stern’s Center for Sustainable Business and PwC provides a data-driven roadmap for companies to unlock the full value of sustainability in product marketing. By aligning sustainability with consumer needs, offering credible claims, and anticipating regulatory trends, businesses can energize growth and build lasting trust in their sustainable brands.

About the Authors
Tensie Whelan is Distinguished Professor of Practice at NYU Stern and Founding Director of the NYU Stern Center for Sustainable Business.
David Linich is a principal at PwC US, specializing in decarbonization and sustainable operations.

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