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

Sustainable products are increasingly popular, yet marketing them effectively remains a challenge for consumer product companies. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC offers actionable strategies to help businesses capture the full potential of sustainability in the marketplace.

Growing Market for Sustainability-Marked Products

• Strong Sales Growth: Analysis of 12 years of US point-of-sale data (2019-2024) across 36 categories reveals sustainability-marketed products growing 12.3% annually—2.3 times faster than conventional items.
• Rising Market Share: These products represented 23.8% of overall consumer packaged goods (CPG) sales in 2024.
• Price Premiums: Surveys and studies indicate consumers are willing to pay an average premium of 9.7% for sustainable products, with actual premiums averaging 26.6%. Premiums exceed 100% for some paper goods and around 50% for coffee, cereal, and chocolate.

Key Strategies for Marketing Sustainable Products

1. Understand the Customer Base

• Millennials, college-educated consumers, urban dwellers, and high-income groups purchase more sustainability-marketed goods.
• Sustainability also captures significant sales across all ages in categories like dairy.
• Identifying the right audience segments within your product categories is critical for targeted marketing.

2. Amplify Appeal by Linking Sustainability to Core Product Qualities

• Successful marketing integrates one clear core attribute (taste, efficacy, sensory experience) with one or two well-chosen sustainability claims.
• This approach can boost product appeal by up to 30 percentage points.
• Example: In skincare, promoting "formulated with sustainable ingredients that are good for your skin" connects sustainability to consumers’ primary concerns.

3. Prioritize Credible, Consumer-Centric Claims

• Consumers respond strongly to sustainability claims tied to benefits such as:

  • Protecting human health (absence of harmful ingredients)
  • Saving money
  • Supporting local farms and communities
  • Benefitting animals’ health
  • Originating from sustainable/local sources

• Less effective claims include scientific properties (biodegradability), traceability, or general certifications without context.

• Certification seals add regulatory validation but require supplementary messaging for consumer resonance.

Ensuring Trust and Transparency

• Ambiguous claims like "clean," "natural," or "safe" risk legal challenges, especially for products used by vulnerable groups.
• Companies must stay informed on emerging regulations such as the EU Corporate Sustainability Reporting Directive and the anticipated EU Green Claims Directive.
• These policies require scientific evidence and transparency supporting all environmental claims.
• Building strong capabilities in value chain analysis and traceability will safeguard against scrutiny and enhance brand credibility.

Conclusion

Effective marketing of sustainable products blends a robust business case with well-tailored, credible claims that resonate with the right consumers. By aligning sustainability messaging with core product benefits and maintaining transparency, companies can unlock growth, command premiums, and build lasting consumer trust.

Authors:
Tensie Whelan, Distinguished Professor at NYU Stern and Founding Director of CSB
David Linich, Principal at PwC US, specialist in decarbonization and sustainable operations

Sources:
NYU Stern Center for Sustainable Business and PwC research analysis based on Circana data, 2019-2024 consumer purchase trends, PwC 2024 consumer survey.

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