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

Marketing sustainable products effectively remains a key challenge for consumer product companies despite clear consumer preference for greener options. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC provides evidence-based strategies that help marketers clarify the business case for sustainability, enhance product appeal, and deliver credible sustainability claims.

The Business Case for Sustainable Products

• Growth Trends: Analysis of 12 years of U.S. point-of-sale data (2019-2024) across 36 consumer packaged goods (CPG) categories shows sustainability-marketed products grew at an annual rate of 12.3%, which is 2.3 times faster than conventional items.
• Market Share: By 2024, sustainable products accounted for 23.8% of overall sales in these categories.
• Price Premiums: Surveys and studies from 2024 reveal consumers are willing to pay about 9.7% more for sustainable items, with observed premiums averaging 26.6%. For some categories like paper products, coffee, cereal, and chocolate, premiums ranged from 50% to over 100%.

Strategies for Maximizing the Value of Sustainable Products

1. Understand Customer Segments and Category Reach

• Key consumer groups include millennials, college-educated shoppers, urban residents, and high-income earners.
• Some product categories, such as dairy, show strong sustainable product sales across all age groups.
• Knowing which segments are most inclined to buy sustainability-marketed products enables targeted marketing and pricing strategies.

2. Amplify Product Appeal by Linking Sustainability with Core Qualities

• Successful marketing pitches highlight a product’s fundamental attributes—taste, texture, cleanliness—before adding one or two sustainability claims.
• Pairing sustainability messages with core product benefits can boost consumer appeal by 30 percentage points on average.
• Example: For skincare, emphasizing “formulated with sustainable ingredients that are good for your skin” resonates more than vague environmental claims.

3. Prioritize Consumer-Valued and Trustworthy Sustainability Claims

• Most appealing claims focus on benefits to consumers such as:
  • Protecting human health (absence of harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Safeguarding children and future generations
  • Preserving animal health
  • Using local or sustainably sourced ingredients
• Less effective claims are those centered on biodegradability, traceability, packaging (except all-recycled content), or certifications alone.
• Certifications support credibility but require complementary messaging to enhance appeal.

4. Ensure Precision, Evidence, and Regulatory Compliance

• Vague terms like “natural,” “clean,” or “safe” are prone to legal challenges, especially for products used on children or ingested.
• Companies should monitor evolving regulations such as the EU’s Corporate Sustainability Reporting Directive and Green Claims Directive, which demand scientific substantiation of environmental claims.
• Developing strong capabilities in value chain analysis and traceability is essential for credible and legally defensible sustainability communications.

Conclusion

The combined research from NYU Stern’s CSB and PwC underscores that sustainable products not only meet growing consumer demand but also offer substantial growth and pricing opportunities. Success lies in crafting focused, credible messages that connect sustainability directly to valued product qualities, backed by evidence and regulatory diligence. By adopting these strategies, marketing leaders can unlock the full potential of sustainable products and drive long-term value creation.

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

For more detailed insights into sustainable product marketing and evolving regulations, stay tuned to our blog dedicated to organic and sustainable product trends.

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.