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

Consumers show rising interest in sustainable products. Companies find it hard to sell these goods well. NYU Stern’s Center for Sustainable Business and PwC research point ways to link sustainability with trust, appeal, and premium prices.

The Growing Market for Sustainability-Marketed Products

• Sales growth shows a clear link: Sustainability products grow faster.
 – In the U.S., their sales grew 12.3% each year from 2019 to 2024.
 – They now make up 23.8% of sales across 36 consumer packaged goods groups (no alcohol or tobacco).

• Price premiums add clear value: Consumers pay extra.
 – People often pay 10% more for sustainable goods.
 – Observed premiums average 26.6%.
 – Some groups, like coffee, cereal, and chocolate, see premiums above 50%.
 – Certain paper items have premiums over 100%.

Marketing Strategies to Unlock Full Value

1. Clarify the Business Case and Understand Consumer Segments

Companies lead sales by linking sustainability with core products.
• In dairy and other key categories, sustainable products do well.
• Groups like millennials, college graduates, urban dwellers, and high earners show high buying rates.
• Finding which consumers buy these products helps target messages clearly.

2. Amplify Appeal by Linking Sustainability to Core Product Attributes

Marketing can mix clear product benefits with a couple of strong sustainability claims.
• Think of it like matching a hit tune with a strong beat.
• For instance, taste or cleanliness gets paired with a note on sustainability.
• When you combine a product’s best quality with a green message, appeal can grow by about 30 percentage points.
• Example: In skin-care, say a product is “formulated with sustainable ingredients that are good for your skin.” This puts sustainability right next to what customers value.

3. Prioritize Credible and Consumer-Relevant Claims

Consumers like claims that tie directly to benefits they feel.
• Look for claims that protect health by avoiding harmful substances.
• Show that a product saves money.
• Support local farms and food systems.
• Help children and future generations.
• Keep animals healthy.
• Use local or truly sustainable source words.
Less impact comes from claims that only talk about scientific ideas (like biodegradable or climate neutral).
Certification seals help but need extra words to build trust.

Navigating Regulatory and Legal Challenges

Ambiguous words like “natural” or “clean” do not stand safe.
• They face legal tests when the goods touch children or skin.
• Companies must follow new rules.
 – The European Union’s Corporate Sustainability Reporting Directive and Green Claims Directive urge proof of green claims.
• Firms should work on value chain checks and product traceability to keep trust strong.

Conclusion

NYU Stern’s CSB and PwC clearly show sustainable marketing wins when companies:

• Tie messages to core product benefits that customers value.
• Use clear, detailed claims that speak to personal needs.
• Prepare for stronger regulations with smart, proactive steps.

Using these steps, marketers can grow sustainable product sales and prices, and build lasting customer trust.

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

Sources:
• NYU Stern Center for Sustainable Business analysis of Circana point-of-sale data (2019–2024)
• PwC consumer survey, 2024
• CSB and Edelman joint consumer messaging research, 2025

For marketers, the takeaway is clear.
• Link sustainability with real product benefits.
• Back promises with strong proof.
• Tailor messages to the right buyers.

This approach helps sustainable products grow in sales and trust.

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.