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

Sustainability is increasingly shaping consumer choices, with growing demand for products that align with environmental and social values. However, marketing sustainable products effectively remains a challenge. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC offers practical guidance to help companies harness this green demand for growth and credibility.

The Business Case for Sustainability in Consumer Products

• Strong sales growth: US point-of-sale data analyzed by CSB from 2019 to 2024 shows sustainability-marketed products grew at an annual rate of 12.3%, more than twice as fast as conventional items.
• Market share: By 2024, sustainable products accounted for nearly 24% of sales in key consumer packaged goods (CPG) categories.
• Price premiums: PwC’s 2024 consumer survey revealed that shoppers are willing to pay an average 9.7% premium for sustainably produced goods. CSB’s data found actual premiums around 26.6%, reaching over 100% in some categories like paper products and 50% in coffee, cereal, and chocolate.

Implication for marketers: Sustainability is not just ethically desirable—it translates into tangible financial opportunity and justifies investment in product development.

Key Strategies to Unlock Sustainability’s Market Potential

1. Identify and Target the Right Consumer Segments

• Higher sustainability purchase rates are evident among millennials, college-educated shoppers, urban dwellers, and high-income consumers.
• Some product categories, like dairy, show broad appeal across age groups.

Action: Understand which consumer demographics and product categories in your portfolio drive sustainable purchases to tailor marketing and product positioning.

2. Amplify Sustainable Attributes with Core Product Qualities

• Effective marketing focuses first on a product’s main appeal—taste, scent, performance—and then layers one or two sustainability attributes.
• This balanced messaging increases product appeal by an average of 30 percentage points.

Example: For skincare, linking sustainability (“formulated with sustainable ingredients”) directly to benefits (“good for your skin”) resonates strongly.

Action: Choose sustainability messages that align closely with product-specific consumer values for maximum impact.

3. Use Credible, Consumer-Relevant Claims

• Most trusted sustainability claims connect to benefits such as:
  • Protecting human health (no harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Preserving animal welfare
  • Contributing to future generations
• Less effective claims include abstract scientific terms (e.g., biodegradable, climate-neutral), traceability, and generic certifications.
• Certification seals help regulatory validation but need complementary messaging to engage consumers.

Action: Be precise and provide evidence for claims, avoiding vague terms susceptible to legal challenges. Monitor evolving regulations such as the EU Green Claims Directive requiring scientific substantiation.

Regulatory Context and the Importance of Transparency

• Companies must navigate tightening regulations on sustainability claims, including the EU’s Corporate Sustainability Reporting Directive and upcoming Green Claims legislation.
• Robust value chain analysis and product traceability are essential for credible and legally compliant sustainability marketing.

Conclusion

Sustainable products represent a powerful growth vector when marketed effectively. By clarifying the business case with strong data, targeting receptive consumer groups, crafting messages that integrate core product qualities with valued sustainability benefits, and substantiating claims rigorously, companies can build trust, command price premiums, and elevate brand appeal in today’s green-conscious marketplace.

About the Authors

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

References available upon request. Data sourced from NYU Stern CSB and PwC 2024 reports.

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.