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

Consumers demand sustainable products. This demand pushes companies to face challenges. Researchers at NYU Stern CSB and PwC show clear steps. They help companies link with buyers, build trust, and use the full power of sustainability.

The Business Case for Sustainable Products

Sales of sustainable goods grow fast. CSB scholars studied 12 years of US sales data from Circana. They saw close links between time and growth:

• Sustainability-marketed items grow at 12.3% each year (2019–2024), more than double conventional rates.
• By 2024, these goods reach 23.8% of the consumer packaged goods market.
• Shoppers pay a 9.7% extra cost on average for these goods.
• In many cases, the extra cost goes over expectations: an average of 26.6%, with some paper items over 100% and coffee, cereal, or chocolate near 50%.

These points show that sustainable products bring growth and profit.

Targeting and Understanding Consumer Segments

Some buyer groups show strong links to these products. They include:

• Millennials
• College-educated shoppers
• Urban residents
• High-income earners

Sustainable goods also show strong links to dairy and other product groups. When brands know which customers are most linked to these products, they can shape their messages to hit hard.

Crafting Effective Marketing Messages

Good marketing ties a product’s traits with one or two key sustainable ideas. Here is how:

• The main product traits—like taste or cleanliness—stay in front.
• Adding one focused sustainable claim lifts appeal by 30 percentage points on average.
• For example, skincare products join their quality with a note on sustainable ingredients. This tie helps link green ideas to real product benefits.

This method makes the message clear and strong.

Building Credible and Trustworthy Claims

Not all sustainable claims hold equal weight. Research by CSB and Edelman finds high links with messages that stress:

• Protection of health (no harmful chemicals)
• Savings on costs
• Support for local farms or food systems
• Care for children and future generations
• Animal well-being
• Local or responsibly sourced inputs

Meanwhile, words like biodegradability, climate neutrality, simple traceability, or generic certification tend to show weaker links to buyer choices.

Precision and Evidence are Critical

Brands must keep sustainability claims close and real by:

• Using specific and proven words. Avoid vague terms such as “clean,” “natural,” or “safe.” These words can bring legal fights, especially for skin or food products.
• Watching or following rules like the EU Corporate Sustainability Reporting Directive, EU Due Diligence Directive, and the proposed Green Claims Directive. These laws demand science and clear evidence.
• Investing in value chain checks and traceability to boost trust in their claims.

Practical Takeaways for Marketing Leaders

• Show clear business value with numbers for sustainable products.
• Pick and focus on the customer groups that care the most.
• Mix core product strengths with one or two strong sustainable claims that match the product.
• Focus on clear, trusted benefits rather than tech-heavy or broad claims.
• Back up your statements with evidence and keep up with regulations.

About the Authors

• Tensie Whelan is a Distinguished Professor at NYU Stern. She started the NYU Stern Center for Sustainable Business.
• David Linich works as a principal at PwC US and brings expertise in decarbonization and sustainable operations.

Using these clear, research-backed steps, consumer product companies can grow, earn extra price points, and build trust through better sustainable marketing.

Sources: NYU Stern Center for Sustainable Business; PwC; Circana market data.

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.