A Better Way to Market Sustainable Products: Key Insights and Strategies

Marketing sustainable products effectively remains a critical challenge for consumer product companies despite growing consumer preference for eco-friendly options. Research by NYU Stern’s Center for Sustainable Business (CSB) and PwC reveals proven strategies to unlock the growth potential and price premiums of sustainability-marketed products through credible messaging and targeted marketing.

Growing Market Share and Pricing Power for Sustainable Products

• Rapid Sales Growth: Sales of sustainability-marketed consumer packaged goods (CPGs) in the U.S. grew nearly 12.3% annually from 2019 to 2024 — more than double the growth rate of conventional products.
• Market Penetration: By 2024, sustainable products accounted for 23.8% of overall sales across 36 CPG categories, representing about 40% of the market (excluding alcohol and tobacco).
• Price Premiums: PwC’s 2024 survey of 20,000 consumers found an average willingness to pay 9.7% more for sustainable goods. Actual data from CSB shows an average price premium of 26.6%, with some categories like paper products exceeding 100%, and coffee, cereal, and chocolate around 50%.

Understanding Customer Segments and Category Reach

• Key Consumers: Millennials, college-educated shoppers, urban dwellers, and high-income earners purchase more sustainability-marketed products.
• Category Leadership: Sustainable products hold significant shares in categories like dairy across all age groups.
• Takeaway: Identifying which customer segments and product categories present the greatest opportunity is essential for marketing success.

Crafting Compelling Messages: Balance Core Attributes with Sustainability

• Focus on Core Attributes: Effective marketing starts with highlighting the fundamental product quality—taste, efficacy, or sensory benefits.
• Layer Sustainability Claims: Adding one or two relevant sustainability messages over core attributes improves appeal by 30 percentage points on average.
• Examples: “Formulated with sustainable ingredients that are good for your skin” ties sustainability directly to skincare benefits.
• Action: Select sustainability claims aligned with product category relevance to maximize consumer resonance.

Prioritizing Credible and Trusted Sustainability Claims

• Most Appealing Claims: Benefits to human health (absence of harmful ingredients), cost savings, support for local farms and future generations, animal health, and local/sustainable sourcing.
• Less Effective: Scientific product properties (e.g., biodegradability), traceability, packaging claims (except all-recycled content), and certification seals alone.
• Certification Role: While seals support regulatory validation, supplemental messaging is necessary to engage consumers.

Emphasizing Precision, Evidence, and Compliance

• Avoid Ambiguous Claims: Generic terms like “clean” or “natural” risk legal challenges, especially for products applied to skin or ingested by children.
• Regulatory Awareness: Tracking evolving policies such as the EU’s Corporate Sustainability Reporting Directive and the proposed Green Claims Directive is crucial for substantiating environmental claims with scientific evidence.
• Capability Building: Companies benefit from investing in value chain analysis and traceability to ensure claim accuracy and consumer trust.

Conclusion

Sustainable product marketing is most successful when it clearly demonstrates business value, connects sustainability to core product benefits, and supports claims with credible evidence. By prioritizing the right customer segments, crafting balanced messaging, and adhering to regulatory standards, companies can unlock sustainable growth and price premiums in the expanding green market.

Authors

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

For companies aiming to thrive in the green economy, integrating these research-backed marketing principles enhances both consumer trust and business performance.

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.