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

Sustainable products attract consumers, and research shows they work well in the market. NYU Stern’s Center for Sustainable Business and PwC have studied these items to find steps that help companies connect with buyers, invest wisely, and earn trust. Each word links closely to the next so ideas stay clear.

The Business Case for Sustainability in Consumer Products

• Strong Sales Growth:
Data from 12 years in 36 CPG categories shows a 12.3% annual growth (from 2019 to 2024) for products with sustainable features. This growth is more than double that of regular items.

• Market Share:
By 2024, sales from products linked to sustainability made up nearly 24% of total sales in these markets. These markets cover about 40% of CPG (without alcohol and tobacco).

• Price Premiums:
A 2024 PwC survey of 20,000 consumers shows buyers are ready to pay almost 10% extra for sustainable goods. NYU Stern studies also found actual premiums averaging 26.6% and sometimes even above 100% (as seen in paper products).

Implication for Marketers:
Sustainable products offer strong growth and pricing power. Companies can build a good investment case here.

Amplifying the Appeal: Combining Core Product Qualities with Sustainability Messages

• Core Attribute First:
Marketers must show a product’s main benefit (like taste or efficiency) at the start.

• Layered Sustainability Claims:
When companies add one or two key sustainability claims, the appeal grows by about 30 percentage points compared to core claims alone.

• Effective Messaging:
Research tells us that messages linking a product’s benefit to sustainability work best. For example, a skincare product that says it is "made with sustainable ingredients that are good for your skin" ties the eco-message directly to what buyers want.

Takeaway:
Mix core qualities with clear, impactful sustainable claims to boost buyer connection.

Credible Claims Matter: Focus on Trustworthy and Consumer-Centric Messages

• Top-Performing Claims:
Buyers like claims that show protection of human health by removing harmful elements, saving cost, and supporting local farms. They also favor messages that help children and future generations or ensure animal care with local, sustainable sources.

• Less Effective Claims:
Simple statements about biodegradability, traceability, or generic seals work less well. These need clear benefits for buyers.

• Regulatory Landscape:
Warnings like “natural” or “safe” can invite legal issues. New rules in the EU, such as the Green Claims Directive, require real proof to back up such claims.

Recommended Action:
Companies should use precise claims and back them with science. They must build traceability and a strong value chain for evidence and regulatory support.

Targeting the Right Customers

NYU Stern research shows that sustainable products work best with these groups:

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

Even dairy and similar items show wide appeal among age groups.

Marketing Strategy:
Focus on customer segments that value sustainability. Adjust messages to fit these groups well.

Conclusion

NYU Stern’s Center for Sustainable Business and PwC research makes one idea clear: Sustainable consumer products show strong growth and price benefits. Companies must:

• Build a clear business case for sustainability
• Mix sustainability with a product’s main features
• Use trusted, clear claims that buyers appreciate
• Watch new regulations to stay compliant

By following these steps, marketers can connect with buyers, gain trust, and bring out the best in sustainable products.

About the Authors
Tensie Whelan is a Distinguished Professor of Practice at NYU Stern and the Founding Director of the Center for Sustainable Business. David Linich is a principal at PwC US with deep knowledge in decarbonization and sustainable operations.

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.