A Better Way to Market Sustainable Products: Key Insights and Strategies

Overview

Consumer preference for sustainable products continues to grow, yet companies face challenges in capturing this demand effectively. Key difficulties include demonstrating the financial benefits of sustainable products, balancing sustainability with other valued product features, and establishing consumer trust amid competing claims and certifications. Research by NYU Stern’s Center for Sustainable Business (CSB) in collaboration with PwC provides actionable insights to help marketers unlock the full value of sustainable product marketing.

The Business Case for Sustainable Products

• Market Growth: Analysis of 12 years of US point-of-sale data across 36 consumer packaged goods categories—covering 40% of the market—shows sustainability-marketed products grew sales at an average annual rate of 12.3% between 2019-2024. This rate is 2.3 times faster than conventional products.

• Market Share: By 2024, sustainability-marketed items accounted for nearly 24% of total sales in these categories.

• Price Premiums: Consumers are willing to pay an average premium of 9.7% for sustainable goods, PwC surveys show. CSB data indicate these premiums can be even higher, averaging 26.6% across categories, exceeding 100% for some paper products, and around 50% for coffee, cereal, and chocolate.

Strategic Marketing Actions

1. Know Your Audience and Categories

Certain demographics—millennials, city dwellers, college-educated individuals, and high earners—are more likely to purchase sustainable products. Some product categories, such as dairy, show strong sustainable product sales across all age groups.

Action: Identify which customer segments are most receptive within your categories to tailor marketing efforts effectively.

2. Amplify the Appeal with Combined Messaging

Successful sustainable marketing blends a product’s core attribute (e.g., taste, effectiveness) with one or two sustainability claims. This layered messaging increases product appeal by an average of 30 percentage points.

Action: Connect sustainability claims directly to the product’s primary qualities. For example, skincare products benefit from messaging like “formulated with sustainable ingredients that are good for your skin.”

3. Focus on Consumer-Valued and Trustworthy Claims

Claims resonating most with consumers highlight direct benefits such as:

• Protecting human health (no harmful ingredients)
• Saving money
• Supporting local farms and food systems
• Aiding children and future generations
• Preserving animal health
• Sourcing locally or sustainably

Less impactful claims relate to scientific properties (biodegradability, climate-neutrality), traceability, and general certifications unless supported by meaningful additional messaging.

Action: Prioritize precise, benefit-driven claims that consumers understand and value.

Navigating Regulatory and Legal Landscapes

• Ambiguous or generic claims (e.g., “natural,” “safe”) are vulnerable to legal challenges, especially for products used by children or applied to skin.

• New EU regulations (Corporate Sustainability Reporting Directive, Due Diligence Directive, Green Claims Directive) require substantiation of environmental claims through scientific evidence and international standards.

Action: Build robust capabilities for value chain analysis, traceability, and scientific validation of sustainability claims to ensure compliance and enhance consumer trust.

Conclusion

Marketing sustainable products effectively requires clarifying their business potential, combining core product qualities with targeted sustainability messaging, and advancing credible, consumer-trusted claims supported by evidence. By aligning marketing strategies with these principles and evolving regulatory frameworks, businesses can unlock sustainable growth and deeper customer loyalty in the expanding green marketplace.

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

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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.