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

Sustainable products are increasingly favored by consumers, yet successfully marketing these goods presents challenges. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC reveals effective strategies for brands aiming to capitalize on green demand while building trust and growth.

Key Challenges in Marketing Sustainable Products

• Balancing Sustainability with Core Product Features: Shoppers seek products that deliver both sustainability and desired functional qualities.
• Building Credibility and Trust: The proliferation of competing claims, labels, and certifications can confuse consumers.
• Justifying Investment: Demonstrating that sustainable products offer growth potential and justify premium pricing remains critical.

Strong Market Growth and Price Premiums

Comprehensive analysis of U.S. point-of-sale data from Circana shows that between 2019–2024:

• Sustainability-marketed products grew 12.3% annually, more than twice the rate of conventional items.
• By 2024, these products constituted 23.8% of total sales in key consumer packaged goods (CPG) categories.
• PwC’s 2024 consumer survey (20,000 respondents) found shoppers willing to pay 9.7% more for sustainable goods.
• Actual price premiums average 26.6%, exceeding 100% in some paper products and around 50% in coffee, cereal, and chocolate categories.

Marketing Strategies to Unlock Full Value

1. Clarify the Business Case by Understanding Customer Segments

Certain groups—including millennials, college-educated, urban dwellers, and high-income earners—purchase more sustainability-marketed products. Recognizing which customer demographics are most likely to buy within specific product categories helps optimize targeting and growth.

2. Amplify Appeal by Connecting Sustainability to Core Attributes

Just as a hit song blends instruments to create a pleasing tune, effective marketing mixes a product’s core quality with one or two supporting sustainability claims. For example, emphasizing that a chocolate bar “tastes rich and delicious” alongside sustainability aspects significantly boosts consumer appeal by up to 30 percentage points. This strategy resonates across all customer segments.

3. Elevate Credible, Consumer-Relevant Claims

Research by CSB and Edelman indicates strong consumer preference for claims focusing on:

• Protecting human health (no harmful ingredients)
• Saving money
• Supporting local farms and future generations
• Preserving animal health
• Using local or sustainable sources

Less impactful claims involve scientific properties (e.g., biodegradability), traceability, packaging (except all-recycled content), and sustainability certifications alone. Certifications help validate claims for regulators but require complementary messaging to increase consumer trust.

4. Be Precise, Evidence-Based, and Compliant

Generic or vague terms like “natural” or “safe” risk legal challenges, especially for products used by children or applied to skin. Companies must monitor evolving regulations such as the EU’s Corporate Sustainability Reporting and Due Diligence Directives, as well as the proposed EU Green Claims Directive, which demand scientific backing for environmental assertions. Developing strong value chain analysis and product traceability capabilities is essential.

Conclusion

Marketers can tap the growth and premium potential of sustainable products by focusing on where sustainability intersects with consumers’ core product expectations and values. Clear, credible, and evidence-backed messaging connected to what matters most to shoppers drives both trust and sales. Adapting to regulatory trends and reinforcing claims with traceable supply chain data will further safeguard brand reputation and competitive advantage.

Authors:
Tensie Whelan, Distinguished Professor of Practice at NYU Stern and Founding Director of CSB
David Linich, Principal at PwC US, expert in decarbonization and sustainable operations

Topics: Consumer Packaged Goods, Sustainable Marketing, Consumer Behavior, Pricing Strategy, Regulatory Compliance

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