A Better Way to Market Sustainable Products

Recent research from NYU Stern’s Center for Sustainable Business (CSB) and PwC sheds light on effective strategies to market sustainable consumer products, helping companies harness the growing green demand while establishing credibility and maximizing growth potential.

The Business Case for Sustainability

Sustainability-marketed consumer goods have outpaced conventional products in growth and profitability. Analysis of 12 years of U.S. sales data across 36 product categories—representing about 40% of the consumer packaged goods (CPG) market—reveals that sustainable products grew at a compound rate of 12.3% annually from 2019 to 2024, over double the rate of conventional items. By 2024, these products accounted for 23.8% of total sales in their categories.

Price premiums are a key driver: PwC’s 2024 consumer survey found shoppers willing to pay on average 9.7% more for sustainably produced goods, while CSB’s market analysis indicated actual premiums averaging 26.6%. Certain categories, like paper products, commanded premiums exceeding 100%, with others such as coffee, cereal, and chocolate around 50%.

Key Customer Segments and Product Categories

Sustainability-marketed products show the strongest appeal among millennials, college-educated consumers, urban dwellers, and higher-income earners. Importantly, some categories—such as dairy—achieve significant sustainability sales shares across all age groups. Understanding these customer dynamics enables targeted marketing tailored to the most receptive audiences.

Crafting Compelling Sustainability Messaging

Successful marketing combines the product’s core virtues with well-chosen sustainability messages. For example, a chocolate bar is primarily valued for its rich taste; layering one or two credible sustainability claims on this core enhances appeal by up to 30 percentage points.

Research by CSB and communications firm Edelman highlights that sustainability claims aligned with product-specific benefits perform best. For skincare, messages like “formulated with sustainable ingredients that are good for your skin” resonate strongly by linking sustainability with key product attributes.

Credible and Precise Claims Build Trust

Among various sustainability claims, consumers prefer those emphasizing:

• Protecting human health (absence of harmful ingredients)
• Saving money
• Supporting local farms and future generations
• Preserving animal health
• Sourcing from local or sustainable origins

Conversely, claims focused solely on scientific attributes (e.g., biodegradability, climate-neutrality), traceability, or certifications generally have less direct consumer appeal, though certifications bolster regulatory compliance and trust.

To avoid legal risks—especially for products used by children or applied to the skin—companies must ensure claims are specific, evidence-backed, and comply with evolving regulations, such as the EU’s Corporate Sustainability Reporting Directive and forthcoming Green Claims Directive. This requires strong value chain transparency and traceability capabilities.

Practical Recommendations for Marketers

1. Identify receptive customer segments to focus sustainable product messaging effectively.
2. Link sustainability claims with core product benefits to create compelling, harmonious product stories.
3. Use clear, credible, and evidence-based claims to foster consumer trust and regulatory compliance.
4. Stay abreast of regulatory developments to adapt to new disclosure and substantiation requirements.
5. Invest in value chain analysis and traceability to ensure transparency and validate sustainability claims.

Conclusion

As consumer demand for sustainable products continues to grow robustly, companies that clarify the business case, craft appealing messages linking sustainability to product quality, and prioritize credible claims will unlock significant growth opportunities while contributing positively to environmental and social goals.

Sources:

• NYU Stern Center for Sustainable Business analysis of Circana data (2012-2024)
• PwC 2024 consumer willingness-to-pay survey
• Joint research by NYU Stern CSB and Edelman communications
• EU sustainability regulatory frameworks (Corporate Sustainability Reporting Directive, Green Claims Directive)

Authors: Tensie Whelan, Distinguished Professor at NYU Stern and Founder 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.