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

As demand for sustainable products grows, companies face real challenges. NYU Stern’s Center for Sustainable Business (CSB) led a study with PwC. They show ways for consumer firms to unlock growth and earn customer trust with green claims.

The Business Case for Sustainable Products

CSB studied 12 years of U.S. point-of-sale data. Products with green marks grew 12.3% a year from 2019 to 2024. This rate is twice that of normal items. By 2024, nearly 24% of consumer packaged goods carried green marks.

PwC surveyed 20,000 people in 2024. Respondents said they would pay 9.7% more for green products. Real purchase data backs this up. On average, buyers paid a 26.6% premium. Some paper products even had a premium of over 100%, while coffee and chocolate reached almost 50%.

Key takeaway: Green products boost sales and let companies charge more.

Identifying and Targeting Key Consumer Segments

Research shows that millennials, college graduates, urban dwellers, and high-income buyers choose sustainable products more often. Some areas, like dairy, appeal to many ages. Companies can target the groups most open to green products in each category.

Crafting Compelling Marketing Messages

Successful marketing ties a product’s main benefit to green features. First, state the core benefit such as great taste or clear skin. Next, add one or two simple green claims. Research by Edelman finds that linking a core claim with two green claims lifts appeal by 30 percentage points on average.

Example: A skincare product can say, “Formulated with sustainable ingredients that care for your skin.” This sentence brings together the main benefit and a green promise.

Prioritizing Trusted and Valued Sustainability Claims

Consumers trust green claims that help them directly. They value promises that:
• Avoid harmful ingredients
• Save money
• Support local farms and food systems
• Help children and future generations
• Protect animal health
• Rely on local or sustainable sources

Claims about biodegradability, traceability, or all-recycled packaging matter less when used alone. Certification marks still help to back up claims for regulators and some buyers.

Ensuring Precision and Credibility in Claims

Ambiguous words like “natural” or “safe” can cause legal trouble, especially for products on the skin, for eating, or for children. Companies must support their claims with real evidence. They must also watch rules like the EU’s Corporate Sustainability Reporting Directive and the proposed Green Claims Directive.

Building skills in value chain tracking and product traceability is key. This keeps claims honest and meets legal rules.

Conclusion: Strategic Marketing Unlocks Sustainable Product Value

Research shows that clear, evidence-backed marketing can drive sales and build trust. Mixing a product’s core benefits with clear green marks helps companies tap into the rising green market. Data on sales growth and price premiums makes one thing clear: green product marketing, when done right, creates real value in consumer goods.

Authors:
Tensie Whelan, Distinguished Professor of Practice at NYU Stern and Founding Director of the 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 analysis of Circana sales data (2019-2024)
• PwC 2024 consumer survey (20,000 participants)
• Collaborative research by NYU Stern CSB and Edelman Communications

By using these clear, simple claims, marketers can build trust, boost appeal, and unlock the business potential of green 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.