A Better Way to Market Sustainable Products

Overview

Sustainable products are increasingly favored by consumers, yet companies often struggle to effectively market these items. Challenges include proving the growth potential and premium price sustainability commands, balancing sustainability with desired product features, and presenting trustworthy claims amid a crowded market of labels and certifications.

Key Findings from NYU Stern and PwC Research

Research led by NYU Stern’s Center for Sustainable Business (CSB) and PwC sheds light on effective strategies for marketing sustainable products:

• Sales Growth: Between 2019 and 2024, products marketed on sustainability features grew sales by an average of 12.3% annually in the US—more than double the growth rate of conventional items. In 2024, these sustainability-marketed products accounted for almost 24% of sales in 36 consumer packaged goods categories (excluding alcohol and tobacco).

• Price Premiums: Consumers are willing to pay nearly 10% more for sustainable products, with actual premiums seen at an average of 26.6%. In some categories, the premium exceeds 100% (e.g., paper products) or approximately 50% (e.g., coffee, cereal, chocolate).

Practical Strategies for Marketing Leaders

1. Understand Customer Segments

Certain demographics—millennials, college-educated individuals, urban dwellers, and high-income earners—are more likely to purchase sustainable products. Additionally, products like dairy have strong sustainability sales across age groups. Recognizing these segments enables targeted marketing efforts.

2. Amplify Appeal by Linking Sustainability to Core Product Qualities

Success arises from marketing sustainable products much like producing a hit song—balancing core product attributes with one or two sustainability claims boosts appeal by around 30 percentage points. For example:

• For skincare products, pairing the claim “formulated with sustainable ingredients that are good for your skin” links sustainability to a key consumer concern.

3. Emphasize Consumer-Benefit-Focused Claims

Claims that resonate most with consumers include:

• Protecting human health by excluding harmful ingredients
• Saving money
• Supporting local farms and food systems
• Supporting future generations and children
• Preserving animal health
• Sourcing from local or sustainable origins

Less effective claims involve scientific terms (biodegradable, climate-neutral), traceability, and packaging details, except for all-recycled content. Certifications are helpful for validation but insufficient alone to drive consumer appeal.

4. Ensure Claims Are Precise, Evidenced, and Compliant

Generic or vague claims (e.g., “clean,” “natural,” “safe”) are vulnerable to legal challenges, especially for products intended for children or skin application. Companies should:

• Back claims with strong scientific evidence and data
• Track evolving sustainability regulations such as the EU’s Corporate Sustainability Reporting Directive and proposed Green Claims Directive
• Build robust capabilities in supply chain analysis and traceability to support transparency and compliance

Conclusion

Sustainable products present significant growth and pricing opportunities, but only if marketers craft credible, consumer-relevant messaging linked tightly to core product attributes and substantiated by evidence. Companies that master this approach can unlock full value while building trust in increasingly discerning markets.

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 specializing in decarbonization and sustainable operations

For sustainable and organic product marketers seeking data-driven insights and actionable strategies, this research offers a roadmap to better connect with consumers and realize the full promise of sustainability.

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.