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

Consumers like sustainable products. Companies often struggle to market these goods well. Research from NYU Stern’s Center for Sustainable Business and PwC shows clear ways to connect, build trust, and drive sales.

The Business Case for Sustainable Products

• Growing Market Share: Twelve years of U.S. sales data from 36 product groups, which cover 40% of the consumer packaged goods market, show that products with sustainability claims grew by 12.3% each year from 2019 to 2024. This growth rate is more than double that of traditional products.
• Increasing Sales Share: By 2024, products with sustainability claims made up 23.8% of total sales in these groups.
• Price Premiums: A PwC 2024 survey shows that shoppers are willing to pay 9.7% more for sustainable goods. Actual sales data shows an average premium of 26.6%. Some categories, like paper products, even have a premium above 100%, and items like coffee, cereal, and chocolate are around 50% more expensive.

Marketing Strategies That Work

1. Identify Target Customer Segments

• Key groups that show a strong interest in sustainable goods are millennials, college-educated people, urban residents, and those with higher incomes.
• Sustainability products do well even in common groups such as dairy buyers. These products appeal to many ages.
• Action: Find which consumer groups respond best in your product range. This helps you target your marketing efforts.

2. Connect Sustainability with Core Product Attributes

• Start your message with a core product benefit. For example, highlight a rich taste or a clean scent.
• Then add one or two clear sustainability claims.
• Research shows that this style boosts product appeal by 30 percentage points.
• An example is a skincare product described as “formulated with sustainable ingredients that are good for your skin.” Here, sustainability supports the main benefit.
• Action: Choose sustainability claims that work well with your key product features.

3. Focus on Claims That Resonate and Build Trust

• The most appealing claims focus on benefits such as:
  • Protecting human health by avoiding harmful ingredients
  • Saving money on everyday expenses
  • Supporting local farms and food systems
  • Caring for children and future generations
  • Preserving animal health
  • Using local or sustainably sourced materials
• Claims that mention scientific terms like biodegradability or climate neutrality, or focus on traceability and packaging (unless it is 100% recycled) do less to build consumer trust. Certifications do add credibility.
• Action: Use claims that are clear and based on evidence. This avoids legal troubles and earns customer trust.

Navigating Regulatory Landscape

Companies must follow new rules. These include the EU’s Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and the upcoming EU Green Claims Directive. These rules demand scientific proof for environmental claims. Companies need strong systems for value chain analysis and traceability to back up their claims.

Conclusion

Marketers can unlock sustainable products’ full potential by clearly explaining their business advantages, linking sustainability to the product’s core features, and using reliable and appealing claims. As consumer demand grows and regulations change, these methods boost brand appeal and support long-term growth.

Authored by Tensie Whelan, Distinguished Professor at NYU Stern and Founding Director of CSB, and David Linich, Sustainability Principal at PwC US.

Additional Resources:

• How the EU Green Deal Drives Business Reinvention
• CEO’s Climate-Transition Checklist
• Sustainability in Manufacturing: Delivering Net-Positive Returns

For marketers who seek success in the sustainable products market, this research gives a clear roadmap. It turns green consumer choices into solid business outcomes through clear, close, and trusted messaging.

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.