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

Consumers like sustainable products. Companies face challenges in marketing them. NYU Stern’s Center for Sustainable Business (CSB) and PwC show clear strategies. They link sustainability directly to product features.

The Business Case for Sustainable Products

• US sales data from 12 years shows that sustainable products grow at 12.3% per year from 2019 to 2024.
• These products soon make up 24% of all consumer packaged goods sales.
• PwC surveys reveal consumers may pay 9.7% more for sustainable items. Real prices rise by 26.6% on average. In some cases, paper goods rise over 100%, and coffee, cereal, and chocolate near 50%.

Key Customer Segments

• Millennials, college-educated buyers, city residents, and high-income earners favor sustainable products.
• Dairy and some other categories show strong sustainable sales among all age groups.
• Marketers must know which group in each category will buy sustainable goods.

Effective Marketing Strategies

Connecting Sustainability with Core Product Qualities

Marketers blend sustainable claims with main product features. Food items show taste, and personal care products show skin benefits.

• CSB and Edelman research shows one core product feature plus one or two strong sustainable claims boost appeal by 30 percentage points.
• This mix works well with many consumer groups.

Prioritizing Trusted Claims

Consumers favor claims that stress:

• Protection of human health (free from harmful ingredients)
• Saving money
• Support for local farms and food systems
• Benefits for children and future generations
• Animal welfare
• Local or sustainable origins

Claims on biodegradability, science, or traceability work less well. Certification seals do help, especially for regulators.

Recommendations for Marketers

1. Be precise and show evidence. Do not use vague claims like “natural” or “safe” that may lead to legal issues.
2. Keep up with changing rules. Watch for the EU’s Corporate Sustainability Reporting Directive and potential Green Claims Directive.
3. Improve supply chain transparency. Use strong value chain analysis and traceability to support claims and meet regulations.

Conclusion

Marketers must show a clear business edge for sustainability. They should mix sustainable claims with core product benefits. They do this by using trustworthy evidence.

Using these clear, data-driven ideas, companies can meet growing consumer demand. They can earn growth and higher prices in the sustainable product market.

Authors: Tensie Whelan, Distinguished Professor at NYU Stern and Director of CSB; 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.