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

Consumers increasingly choose sustainable products. They value green goods but often find it hard to tap this demand. Companies must prove growth and pricing for these items. They must also align green features with everyday benefits. In addition, they need to share clear, trustworthy messages amid many claims.

The Business Case for Sustainable Products

Research from NYU Stern’s Center for Sustainable Business and PwC shows strong evidence for green growth. They examined 12 years of US sales data in 36 product groups that cover 40% of the consumer packaged goods market. In this data, sustainable products grew at 12.3% per year from 2019 to 2024. This rate is over twice the growth of conventional products. In 2024, sustainable items made up 23.8% of total sales. A 2024 PwC survey of 20,000 consumers found that many would pay 9.7% more for these goods. Actual price premiums averaged 26.6%—over 100% for some paper products and around 50% for coffee, cereal, and chocolate.

Strategies to Maximize Value from Sustainability Marketing

1. Recognize Customer Segments and Category Reach

Millennials, college graduates, urban residents, and higher-income shoppers often buy green products. In some cases, all age groups favor items like dairy. Knowing which customer groups lean toward sustainable products helps you target your marketing clearly.

2. Amplify the Appeal by Linking Sustainability to Core Product Qualities

Marketing works best when a product’s main benefits (like taste or cleanliness) join with one or two clear sustainability points. This mix can boost overall appeal by up to 30 percentage points. For example, skincare that is “formulated with sustainable ingredients that are good for your skin” ties green ideas to key consumer needs.

3. Focus on Trustworthy, Consumer-Relevant Sustainability Claims

Consumers respond best to green messages that emphasize:

• Health benefits (using no harmful ingredients)
• Cost savings
• Support for local farms and food systems
• Care for children and the future
• Animal welfare
• Local or sustainable sourcing

Messages that mention only scientific features (such as biodegradability or climate-neutrality), traceability, packaging details (except all-recycled content), or just a certification seal tend to work less well. Certification helps with regulatory needs but must join with clear messages to truly appeal.

4. Build Precision and Evidence into Claims

Using vague words like “clean” or “natural” risks confusion and legal issues. This is especially true for products used by children or applied to the skin. Companies should closely follow evolving rules. In the EU, regulations demand that environmental claims come with scientific backing, standards, and proof.

Regulatory Context and Compliance

EU rules, such as the Corporate Sustainability Reporting Directive and the Due Diligence Directive, require businesses to check environmental and social impacts along their entire supply chain. The soon-to-be-published EU Green Claims Directive will demand science-based proof for any green claim. These rules push companies to build strong traceability systems and value chain analysis.

Conclusion

A clear business case, targeted customer insights, the right mix of core benefits and green messages, and proofs based on evidence are key to marketing sustainable products well. These clear steps help brands unlock growth, secure pricing premiums, and build lasting consumer trust.

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

Published: May 21, 2025

For marketers of sustainable consumer goods, follow these clear and evidence-based insights. They will help you boost product appeal, understand and meet new rules, and capture the full business value of sustainability.

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.