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

As consumer demand for sustainable products grows, companies face challenges in effectively marketing these goods. Recent research from NYU Stern’s Center for Sustainable Business (CSB) and PwC offers data-driven guidance on overcoming these hurdles and capturing the full business potential of sustainability.

The Business Case for Sustainable Products

Sustainability-marketed products have outpaced conventional ones in sales growth for years. According to an analysis of 12 years of U.S. point-of-sale data by CSB, sustainability-labeled consumer goods grew at an annual rate of 12.3% from 2019 to 2024 — more than double the growth of non-sustainable items. By 2024, such products accounted for nearly 24% of sales in 36 consumer packaged goods (CPG) categories, representing about 40% of the overall CPG market.

Furthermore, consumer willingness to pay a premium aligns with actual pricing trends. PwC’s 2024 survey of 20,000 consumers found an average willingness to pay 9.7% more for sustainable products. In practice, sustainable goods commanded an average price premium of 26.6%, with certain categories like paper products exceeding 100%, and coffee, cereal, and chocolate nearing 50%.

Key Strategies to Maximize Marketing Impact

1. Target the Right Customer Segments

Sustainability appeals especially to millennials, college-educated shoppers, urban dwellers, and high-income consumers. However, sustainable products hold significant shares across all age groups in certain categories like dairy. Understanding and prioritizing customer segments most receptive to sustainability is essential for effective marketing.

2. Connect Sustainability to Core Product Attributes

Successful marketing blends sustainability claims with core product benefits. Research by CSB and Edelman reveals that pitches centered on a primary product attribute (e.g., taste, scent, or efficacy) plus one or two layered sustainability messages increase product appeal by 30 percentage points on average. For example, a skincare product described as “formulated with sustainable ingredients that are good for your skin” ties sustainability directly to consumer priorities.

3. Use Consumer-Trusted Sustainability Claims

Not all sustainability messages resonate equally. Consumers rate claims about protecting human health, saving money, benefiting local farms and food systems, supporting future generations, preserving animal health, and using local or sustainable sourcing as highly credible. Conversely, claims focused solely on scientific properties (e.g., biodegradability or climate neutrality), traceability, or generic certifications are less persuasive.

Ensuring Credibility and Compliance

Brands must avoid ambiguous terms like "natural," "clean," or "safe," which are prone to legal challenges, especially for products used by children or applied to skin. Companies should monitor evolving regulations, such as the EU’s Corporate Sustainability Reporting Directive and the proposed Green Claims Directive, which will require robust scientific substantiation for environmental claims.

Investing in rigorous value chain analysis and transparency strengthens claim validity and consumer trust—key factors in a crowded marketplace full of competing sustainability messages.

Conclusion

Effective marketing of sustainable products hinges on clear, credible messaging that links sustainability to core product benefits and appeals directly to target consumer groups. By leveraging data-backed strategies and navigating regulatory requirements, companies can unlock growth opportunities, justify investment in sustainable innovation, and foster lasting consumer trust.

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

References:

• NYU Stern CSB Analysis of Circana Point-of-Sale Data (2019-2024)
• PwC 2024 Consumer Survey on Sustainability
• CSB and Edelman Communications Research on Consumer Appeals
• EU Corporate Sustainability Reporting Directive and Green Claims Directive Developments

For marketers and business leaders looking to sustain growth while advancing environmental goals, these insights provide a pragmatic blueprint for success in the sustainable product space.

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.