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

Consumers favor sustainable products. Yet brands struggle to market them. NYU Stern’s Center for Sustainable Business and PwC offer new ideas. Their research shows how to boost both appeal and credibility of sustainable consumer packaged goods.

The Growing Business Case for Sustainability

• Market Growth: Sustainable products grow at 12.3% per year (2019–2024). They outgrow regular products by more than double. This rate comes from 12 years of data on 36 product categories (covering about 40% of the CPG market, except alcohol and tobacco).

• Market Share: By 2024, sustainable products fill nearly 24% of all CPG sales.

• Price Premium: Consumers pay about 9.7% more for these products. In real observations, the premium averages 26.6%. Some items, like paper, go past 100%. Coffee, cereal, and chocolate hover near 50%.

Identifying Key Customer Segments

Millennials, college-educated people, city dwellers, and high earners lead in buying sustainable products. Yet all age groups show sales. Dairy, for example, attracts many.
• Action Point: Adjust your strategy to each key demographic and product group that shows strong interest in sustainability.

Amplifying Sustainable Product Appeal

Pair core product traits (taste, smell, or effectiveness) with one or two clear sustainability claims.
Research from CSB and Edelman shows that blending sustainability with a product’s main traits boosts appeal by 30 percentage points.
• Action Point: Use messages tied directly to key qualities in the category. For example, say “formulated with sustainable ingredients good for your skin” for skincare.

Advancing Credible, Trusted Claims

Strong sustainability claims stress benefits for consumers.
They protect human health (by avoiding harmful ingredients), save money, support local farms and food systems, help children and future generations, protect animal health, and use local or sustainable sources.
Claims about biodegradability, climate neutrality, traceability, or certification seals need extra support.
• Action Point: Rely on exact, proof-based claims. Stay updated with new rules such as the EU’s Corporate Sustainability Reporting Directive and the Green Claims Directive. These rules require scientific proof.

Navigating Legal and Regulatory Challenges

Ambiguous terms like "clean," "natural," or "safe" can cause legal risks. This is true especially for children’s products or skin applications.
Companies should build strong supply chain traceability and clear value chain analysis to back up their claims.

Conclusion

Sustainability shapes how consumers choose today. Marketing leaders have a clear plan to unlock value:

• Use clear data to target the right customer segments.
• Create messages that mix product appeal with solid, clear sustainability claims.
• Invest in transparency and traceability. This builds trust and meets scrutiny.

These steps make sustainable products not only better for our world but also strong, competitive choices in the market.

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

For marketers and business leaders in the green economy, this study offers a clear plan. It shows how to market sustainable products with honesty, appeal, and clear results.

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.