A Better Way to Market Sustainable Products

Unlocking Growth Potential in Sustainable Consumer Goods

Sustainable products are increasingly preferred by shoppers, yet companies often face challenges in harnessing the full market potential of green offerings. Recent research by NYU Stern’s Center for Sustainable Business (CSB) and PwC provides actionable insights into effective marketing strategies that deliver both growth and consumer trust.

The Business Case for Sustainability

• Market Growth: Sustainability-marketed products have outpaced conventional ones, growing at an annual rate of 12.3% from 2019 to 2024—more than twice as fast.
• Market Share: In 2024, sustainable goods accounted for 23.8% of sales in key consumer packaged goods (CPG) categories.
• Price Premium: PwC’s 2024 survey of 20,000 consumers showed a willingness to pay nearly 10% more for sustainably produced items; actual premiums average 26.6%, exceeding 100% in some paper products and around 50% in coffee, cereal, and chocolate.

Identifying Target Consumer Segments

Certain demographics exhibit stronger purchasing behavior toward sustainable products:

• Millennials
• College-educated shoppers
• Urban residents
• High-income earners

Understanding these groups and product categories where sustainability commands significant share and pricing is critical to marketing success.

Crafting an Appealing Marketing Message

• Center on Core Attributes: Successful campaigns tie sustainability to the product’s essential qualities (e.g., a chocolate bar’s rich taste or a soap’s clean scent).
• Layer Sustainability Claims: Combining one or two relevant sustainability claims with core product benefits can enhance appeal by up to 30 percentage points.
• Tailor to Product Category: For skincare, messages like “formulated with sustainable ingredients good for your skin” resonate best by linking sustainability directly with consumers’ primary concerns.

Elevating Credible and Trusted Claims

Consumers value sustainability messages that highlight:

• Human health benefits (no harmful ingredients)
• Cost savings
• Support for local farms and food systems
• Benefits for children and future generations
• Animal health preservation
• Use of local or sustainable sourcing

Less effective are claims focused solely on scientific properties (biodegradability, climate neutrality), detailed traceability, packaging (unless all-recycled), or sustainability certifications alone.

Ensuring Clarity and Compliance

• Avoid vague terms like "clean," "natural," or "safe" that often lead to legal challenges.
• Strong evidence backing claims is essential to build trust and comply with rising regulatory scrutiny, especially in EU markets governed by directives like:
  • Corporate Sustainability Reporting Directive
  • Corporate Sustainability Due Diligence Directive
  • Proposed EU Green Claims Directive

Companies benefit from robust value chain analysis and traceability capabilities to substantiate their sustainability claims credibly.

Conclusion

Marketing sustainable products effectively requires blending authentic, product-aligned sustainability messages with clear, evidence-backed claims aimed at well-defined customer groups. By following these research-backed principles, businesses can unlock substantial growth and customer loyalty in the evolving green marketplace.

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

For further insights on sustainable marketing and business strategies, follow updates from NYU Stern’s Center for Sustainable Business and PwC.

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.