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

Sustainable products enjoy increasing consumer preference, yet companies face challenges in effectively marketing them to realize growth and justify investment. Recent research by NYU Stern’s Center for Sustainable Business (CSB) and PwC sheds light on strategies that connect with customers, build trust, and drive sales in the competitive consumer packaged goods (CPG) market.

Market Growth and Willingness to Pay Premiums

Analyzing 12 years of US point-of-sale data from Circana covering 36 CPG categories (about 40% of the market excluding alcohol and tobacco), CSB found that sustainability-marketed products grew at an impressive 12.3% annually from 2019 to 2024—more than double the growth of conventional products. By 2024, these products accounted for nearly 24% of all sales.

PwC’s 2024 consumer survey of 20,000 respondents revealed a willingness to pay an average of 9.7% more for sustainably produced goods. Importantly, CSB data confirmed actual price premiums averaging 26.6%, reaching over 100% in some categories like paper products, and approximately 50% for coffee, cereal, and chocolate.

Key Strategies to Unlock Sustainable Product Potential

1. Understand Product Categories and Target Consumers

• Primary buyers: Millennials, college-educated shoppers, urban residents, and high-income earners show higher sustainable product purchases.
• Category insights: Sustainability-marketed products hold significant sales shares across all age groups in certain categories such as dairy.
• Action point: Identify which consumer segments dominate purchases in your product categories to tailor marketing efforts effectively.

2. Amplify Appeal by Connecting Sustainability with Core Product Qualities

• Research from CSB and Edelman shows the most effective marketing centers on a product’s core benefit (e.g., taste, fragrance, cleanliness), complemented by one or two sustainability claims.
• This layered messaging can increase product appeal by 30 percentage points on average across all consumer groups.
• Action point: Craft sustainability messages that align directly with product attributes important to the category, such as “formulated with sustainable ingredients that are good for your skin” for skincare products.

3. Prioritize Credible, Consumer-Relevant Claims

• Consumers value claims emphasizing direct benefits: protecting human health (no harmful ingredients), saving money, supporting local farms, benefiting future generations, preserving animal health, and using local or sustainable sources.
• Less appealing are scientific claims (e.g., biodegradable, climate-neutral), traceability details, packaging information (except recycled content), and certification seals alone.
• Action point: Use precise, evidence-backed messaging. Avoid vague terms like “clean” or “natural,” which risk legal challenges and consumer skepticism.

Navigating Regulatory and Trust Challenges

• Companies must monitor evolving regulatory frameworks, especially in the EU, where directives like the Corporate Sustainability Reporting Directive and potentially the EU Green Claims Directive demand transparency and scientific substantiation of environmental claims.
• This regulatory landscape underscores the need for robust value chain analysis and traceability capabilities.
• Action point: Prepare to substantiate sustainability claims with scientific evidence and adhere to international standards to maintain consumer trust and compliance.

Conclusion

The NYU Stern CSB and PwC findings highlight that sustainable products are not only commercially viable but also command a premium when marketed with clear, credible messaging connected to core product qualities. For marketers, the blend of targeted consumer insights, appealing sustainability narratives, and precise, verifiable claims forms the foundation for capturing full value in the expanding sustainable goods market.

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

For a deeper dive into sustainability marketing strategies and regulatory frameworks, stay tuned to our blog.

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.