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

Shoppers seek eco-friendly choices. Sustainable products gain steam as buyers choose green goods. Companies face a simple task. They must match green claims with real product benefits, show growth, and win trust. They do this while words and labels crowd the market.

The Business Case for Sustainable Products

NYU Stern’s Center for Sustainable Business dug into 12 years of US point-of-sale data from Circana. Their work shows clear trends in growth. The data reveal:

• Sales of sustainability-marketed products grew by 12.3% each year from 2019 to 2024.
• These products made up 23.8% of sales in 36 important CPG groups by 2024.
• PwC’s 2024 survey finds shoppers pay about a 9.7% premium for green goods.
• Direct data tells us that these products earn a 26.6% price premium. In some groups like paper, coffee, cereal, and chocolate, premiums reach or pass 50%.

Marketing Strategies That Resonate

To show full value, marketers must follow clear steps:

1. Know the Target Customer Segments

Millennials, college graduates, urban residents, and high-income buyers push green sales. Dairy and some other groups show high green sales for all ages. Knowing who buys green products helps teams focus efforts.

2. Connect Sustainability to Core Product Qualities

CSB and Edelman affirm a key point. They say that tying a product’s main trait—like taste or strength—to one or two green claims works best. This mix lifts appeal by 30 percentage points. For instance, a skincare product may state it is “made with sustainable ingredients that care for your skin.” Here, green ideas link directly to what customers love.

3. Prioritize Credible, Consumer-Relevant Claims

Focus on clear benefits. Claims about human health, cost savings, local farm support, future generations, and animal care work well. Avoid vague claims like “climate-neutral” or generic labels. Marketers need clear, evidence-based words. This care builds trust and stops legal issues, especially when kids use the products.

Navigating Evolving Regulations

The EU now sets strict rules. Regulations like the Corporate Sustainability Reporting Directive and Green Claims Directive need solid proof for each claim. Companies must improve traceability in their value chain to meet these rules and keep consumer trust.

Conclusion

Sustainable products offer real growth and premium chances to consumer goods companies. Success depends on showing a clear business case, linking green messages to a product’s best traits, and using precise, trustworthy claims. As rules grow tougher, clear transparency and traceability become vital for leaders in green innovation.

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

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.