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

Marketing sustainable consumer products effectively remains a challenge despite growing shopper preference for green alternatives. According to research by NYU Stern’s Center for Sustainable Business (CSB) and PwC, overcoming hurdles such as proving growth potential, balancing sustainability with other product features, and fostering trust in sustainability claims is key to unlocking value in this sector.

The Business Case for Sustainability in Consumer Products

Based on 12 years of US point-of-sale data from Circana, the CSB researchers found that sustainability-marketed products have surged in popularity, growing sales nearly 12.3% annually from 2019 to 2024. This is more than double the growth rate of conventional goods, pushing sustainable options to a 23.8% share of total consumer packaged goods (CPG) sales by 2024. Moreover, price premiums for such products are significant. A PwC survey of 20,000 consumers in 2024 revealed a willingness to pay nearly 10% more for sustainably sourced or produced goods. Actual market data further showed an average price premium of 26.6%, with certain categories like paper products commanding over 100% premiums and coffee, cereal, and chocolate close to 50%.

Key Strategies for Marketing Sustainable Products

1. Understand Customer Demographics and Category Reach

Sustainability-marketed products are especially popular among millennials, college-educated buyers, urban dwellers, and higher-income consumers. Some categories, such as dairy, have broad sustainable product adoption across age groups and carry substantial price premiums. Identifying which demographic segments are most inclined to purchase sustainable products within your categories is essential for effective targeting.

2. Connect Sustainability with Core Product Attributes

Effective marketing blends sustainability messages with the product’s primary benefits. Research by CSB and Edelman highlights that campaigns centered on a core attribute (e.g., taste, scent, or efficacy) enhanced with one or two sustainability claims yield stronger appeal. For example, a skincare product promoted as "formulated with sustainable ingredients good for your skin" ties environmental values directly to consumer benefits, increasing product allure by up to 30 percentage points.

3. Prioritize Trusted and Relevant Sustainability Claims

Consumers value sustainability messages that emphasize:

• Protection of human health (absence of harmful ingredients)
• Cost savings
• Support for local farms and food systems
• Benefits to children and future generations
• Animal health preservation
• Locally or sustainably sourced ingredients

Conversely, claims centered on technical scientific properties (biodegradability, climate-neutral status), traceability, or generic certifications have less appeal, although certification seals can support regulatory validation.

4. Ensure Precision and Evidential Support for Claims

Ambiguous terms like "clean," "natural," or "safe" are susceptible to legal challenges, especially for products used by children or applied to skin. To mitigate risks, companies must provide clear, precise, and scientifically backed sustainability claims. With evolving regulations—such as the EU’s Corporate Sustainability Reporting Directive and potential Green Claims Directive—substantiating environmental assertions with robust data and transparency throughout the value chain has become imperative.

Conclusion

Sustainability offers a potent avenue for growth and differentiation in consumer markets when marketed strategically. Leveraging detailed market insights, aligning sustainability with product benefits, and delivering credible, evidence-backed messaging can help brands tap into the surging demand for sustainable goods, justify price premiums, and build lasting consumer trust.

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

Sources:

• NYU Stern Center for Sustainable Business research (2019–2024 sales data)
• PwC 2024 consumer survey on sustainability price premiums
• CSB and Edelman co-research on marketing messaging effectiveness

Relevant Topics: Consumer Packaged Goods, Marketing Strategies, Sustainability, Consumer Behavior, Product Development

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