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

Sustainable products enjoy growing consumer preference, yet companies face challenges in effectively marketing these goods. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC outlines strategies to unlock their full market potential by clarifying the business case, enhancing product appeal, and building credible sustainability claims.

The Business Case for Sustainable Products

Strong Sales Growth and Price Premiums

• Sustainability-marketed products grew 12.3% annually from 2019 to 2024, outpacing conventional products by more than twice (CSB analysis of 12 years of US data).
• By 2024, these products accounted for nearly 24% of total consumer packaged goods (CPG) sales.
• Consumers demonstrate willingness to pay a 9.7% premium on average, with actual premiums averaging 26.6% higher than conventional products.
• Some categories, like paper goods, command premiums exceeding 100%, while staples such as coffee, cereal, and chocolate carry about a 50% premium.

Targeted Customer Segments

• Millennials, college-educated shoppers, urban residents, and high-income earners are most inclined to buy sustainability-marketed products.
• Notably, categories like dairy see broad sustainability product adoption across all age groups.
• Understanding demographic and category-specific buyer behavior is essential for market positioning.

Amplifying the Appeal of Sustainable Products

Combine Core Product Qualities with Sustainability Messages

• Effective marketing begins with a strong core product attribute (e.g., taste, functionality).
• Layering one or two relevant sustainability claims enhances overall product appeal by approximately 30 percentage points.
• This approach works universally across customer demographics.

Actionable Tip:

• Align sustainability messaging with attributes that resonate deeply within the product category.
• For instance, skincare products perform best when sustainability claims emphasize benefits to skin health, such as being “formulated with sustainable ingredients good for your skin.”

Elevating Credible and Trusted Sustainability Claims

What Resonates with Consumers

• High-appeal claims include benefits to:

  • Human health (free from harmful ingredients)
  • Cost savings
  • Support for local farms and food systems
  • Commitment to children and future generations
  • Animal welfare
  • Local or sustainable sourcing

• Less effective claims relate to:

  • Scientific properties like biodegradability or climate neutrality
  • Traceability and packaging (except all-recycled content)
  • Certifications alone—these assist with regulatory validation but require supplementary messaging to influence consumer preferences.

Legal and Regulatory Considerations

• Avoid ambiguous terms such as “clean,” “natural,” or “safe” due to increasing legal scrutiny, particularly for children’s products or ingestibles.
• Companies should monitor evolving regulations like the EU Corporate Sustainability Reporting Directive and the potential EU Green Claims Directive (2025), which will require scientific substantiation of environmental claims.
• Building robust value chain analysis and traceability capabilities is vital for compliance and credibility.

Conclusion

Marketing sustainable products effectively requires a blend of clear business justification, appealing messaging tied to core product qualities, and trustworthy, substantiated claims. Leveraging these principles can drive growth, justify price premiums, and build lasting consumer trust in a competitive marketplace.

About the Authors

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

By applying these research-backed insights, companies producing organic and sustainable products can better connect with consumers, boost sales, and contribute meaningfully to sustainability goals.

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.