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

Sustainable products grow fast and earn high price premiums. Yet, marketers in consumer goods face hurdles. NYU Stern’s Center for Sustainable Business (CSB) and PwC offer new research. They show how brands connect with customers and boost sustainability’s worth in consumer packaged goods. Here, each word links closely to its neighbor to help you follow the ideas.

The Business Case for Sustainability in Consumer Products

• • Sales Growth: CSB looked at 12 years of U.S. sales data. Their study shows that products with sustainability features grew by 12.3% each year from 2019 to 2024. This is more than twice the rate of normal products.
• • Market Share: In 2024, sustainable products made up 23.8% of all CPG sales (alcohol and tobacco aside). This fact shows strong consumer interest.
• • Price Premiums: A PwC survey in 2024 found that consumers are willing to pay 9.7% more for sustainable goods. Real market data shows a 26.6% premium on sustainable items. Some groups, like paper products, even enjoy a 100% markup, and products like coffee, cereal, or chocolate reach about a 50% premium.

Key Strategies to Unlock Full Value

1. Understand Target Customer Segments

Study who buys sustainable products. Millennials, city dwellers, college graduates, and higher-income buyers lead these trends. In dairy, every age group shows strong sales of sustainable choices. Marketers should find the groups that favor sustainability in each product line. This close linking of ideas makes the message clear.

2. Connect Sustainability to Core Product Attributes

Pair key features (like taste, scent, or strength) with one or two hints of sustainability. Research by CSB and Edelman shows that this mix can lift a product’s appeal by as much as 30 percentage points. For instance, skincare gets better reviews when the message reads, “Formulated with sustainable ingredients good for your skin.” This connection tightly bonds sustainability with what customers care about. Using too many claims or focusing only on green ideas can weaken the effect.

3. Prioritize Credible, Consumer-Relevant Claims

Claims must show clear and real consumer benefits. Think safety (no harmful ingredients), saving money, helping local farms, supporting animal care, or securing a better future. Such points work best. In contrast, technical words like “biodegradable” or seals that lack extra detail do not work as well. Keeping the claim clear, direct, and based on evidence builds trust. Vague claims like “clean” or “natural” can cause legal risks, especially with products for children or skin.

Regulatory Considerations and Due Diligence

Brands must keep up with new rules. For example, the EU Corporate Sustainability Reporting Directive and the proposed EU Green Claims Directive require proof. Brands must show scientific evidence and meet international standards. Investing in tools for value chain analysis and traceability helps verify green claims and keeps reputations safe.

Conclusion

To market sustainable products well, brands must balance clear business gains, blend sustainability with core product benefits, and use claims that are real and clear. With these research-backed ideas, consumers will find more value, premium prices can be earned, and sustainable commerce can thrive.

Authors: Tensie Whelan, Distinguished Professor of Practice at NYU Stern and Founding Director of NYU Stern Center for Sustainable Business; David Linich, Principal at PwC US, expert 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.