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

Sustainable products gain popularity. Companies still struggle to market them well. NYU Stern’s CSB and PwC provide clear strategies. These ideas help connect with customers, justify investments in sustainability, and speak clearly in a busy market.

The Growing Business Case for Sustainability

• Sales Growth: Sustainability-marketed products grew 12.3% each year from 2019 to 2024. This rate is more than twice that of conventional goods.
• Market Share: By 2024, sustainable products earned 23.8% of total sales in 36 packaged goods categories (excluding alcohol and tobacco).
• Price Premium: Consumers are willing to pay more. PwC’s 2024 survey shows a 9.7% increase in willingness, while actual premiums reached 26.6% on average. In some cases, like paper products, premiums went over 100%.

These points show that sustainability drives growth and profit. They give companies the confidence to invest in sustainable product development.

Understanding Customer Segments and Product Categories

Key buyers include millennials, college-educated shoppers, urban residents, and high-income consumers.
Some areas, like dairy products, have strong sustainable options for all groups.
Marketers must study who cares most about sustainability in each product line.

Action Point: Focus your marketing on the customer segments most likely to buy sustainable goods. Find the product areas where sustainability boosts sales and price premiums.

Crafting Appealing Sustainability Messages

Research by CSB and Edelman highlights key ideas:
• Begin with a clear product quality, such as taste, scent, or performance.
• Add one or two clear sustainability claims that enhance product benefits.
• Link these claims directly to qualities that consumers value in the category (for example, “made with sustainable ingredients that care for your skin” in skincare).

Action Point: Tie sustainability claims closely to the core qualities of the product. This link makes your brand stand out and speak clearly to buyers.

Which Sustainability Claims Win Consumer Trust?

Consumers trust claims that focus on:
• Protecting human health, like avoiding harmful ingredients.
• Saving money.
• Supporting local farms and food systems.
• Helping children and future generations.
• Caring for animal health.
• Using local or sustainable sources.

Claims that emphasize scientific details (such as biodegradability, climate neutrality, traceability, or certifications) tend to be less effective. Even certification seals need strong, clear messages to work.

Ensuring Credible and Precise Claims

• Avoid vague words like “clean,” “natural,” or “safe.” Such words can lead to legal issues.
• Stay up-to-date with evolving regulations, especially in places like the EU. There, rules demand scientific backing for environmental claims.
• Build strong skills in analyzing value chains and traceability to support clear, evidence-based claims.

Action Point: Strengthen the proof behind sustainability claims to meet rules and build trust with consumers.

Conclusion

Sustainable products drive profit and growth. To tap this potential, companies must:

• Clearly show the business benefits with data-driven sales growth and price premiums.
• Target the best customer segments and product lines.
• Blend sustainability messaging with core product strengths.
• Use claims that consumers value and trust.
• Ensure every claim is precise and backed by science.

By following these steps, companies can meet consumer demands and stand out in the growing green market.

Sources:

• NYU Stern Center for Sustainable Business research (2024-2025)
• PwC Consumer Survey on Sustainability (2024)
• Insights from collaboration with Edelman Communications

Authors:

• Tensie Whelan, Distinguished Professor of Practice, NYU Stern
• David Linich, Principal, PwC US

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.