A Better Way to Market Sustainable Products

Overview

Sustainable product marketing faces challenges despite growing consumer preference for eco-friendly goods. Success hinges on demonstrating strong business cases, appealing messaging, and trustworthy claims. Collaborative research by NYU Stern’s Center for Sustainable Business (CSB) and PwC offers practical strategies for marketers to unlock the full value of sustainability.

Key Findings on Sustainable Product Growth

• Sustainability-marketed consumer goods have grown at an annual rate of 12.3% from 2019 to 2024, outpacing conventional products by over twice.
• In 2024, these products accounted for 23.8% of total consumer packaged goods (CPG) sales in the US across 36 categories.
• Consumers surveyed by PwC in 2024 indicated a willingness to pay an average 9.7% price premium for sustainably produced items.
• Real-world data shows a 26.6% average price premium for such products, with some categories like paper products commanding premiums above 100%.

Strategies to Maximize Sustainable Product Appeal

1. Understand Customer Segments and Product Categories

• Millennial, college-educated, urban, and high-income shoppers are most likely to buy sustainability-marketed goods.
• Categories such as dairy exhibit broad-based sustainable product adoption.
• Marketers should identify and target these key consumer groups within their product categories to optimize impact.

2. Connect Sustainability to Core Product Attributes

• Successful advertising blends traditional product qualities (taste, effectiveness, scent) with one or two sustainability messages.
• This “harmonious mix” approach enhances product appeal by up to 30 percentage points compared to multiple core claims.
• Tailor sustainability claims to what matters most in the product’s category (e.g., “formulated with sustainable ingredients that are good for your skin” for skincare).

3. Prioritize Impactful and Trusted Sustainability Claims

• Consumer appeal is strongest for claims that:
  • Protect human health (free of harmful ingredients)
  • Save money
  • Support local farms and communities
  • Benefit animals
  • Ensure local or sustainable sourcing
• Claims about scientific attributes (biodegradability, climate neutrality), traceability, or certifications perform less well.
• Certification seals help validate claims but require complementary messaging to build consumer trust.

4. Ensure Clarity and Evidence in Claims

• Avoid vague claims like “clean,” “natural,” or “safe,” which are legally vulnerable and often challenged.
• Keep abreast of evolving regulations such as:
  • EU’s Corporate Sustainability Reporting Directive
  • Corporate Sustainability Due Diligence Directive
  • Proposed EU Green Claims Directive mandating scientific substantiation of environmental claims
• Develop strong capabilities for value chain analysis and traceability to support transparent product claims.

Conclusion

Sustainable products are a growing force in consumer goods, offering companies both market growth and price premium opportunities. Success depends on clear business cases, strategic messaging that connects sustainability to core product benefits, and credible, evidence-backed claims that build consumer trust. Companies that master these marketing principles will be well-positioned for lasting growth in the green economy.

Authors:
Tensie Whelan, Distinguished Professor of Practice, NYU Stern, Founding Director of NYU Stern Center for Sustainable Business
David Linich, Principal, PwC US, Decarbonization and Sustainable Operations Expert

Source: Research collaboration between NYU Stern’s Center for Sustainable Business and PwC, based on extensive US market data and consumer surveys conducted up to 2024-2025.

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.