A Better Way to Market Sustainable Products

Overview

Consumers show more demand for sustainable products. Companies face a tough task to use this green trend. They must show that these products can grow fast and earn higher prices. At the same time, they need to balance sustainability with other product features. They must build trust in a market full of claims and certifications.

Key Findings from NYU Stern & PwC Research

Growth and Price Premiums for Sustainable Products

• In 36 CPG categories, sustainable products grew 12.3% per year from 2019 to 2024.
• These products made up nearly 24% of total sales by 2024.
• Consumers pay about 10% more on average for sustainable goods.
• Some paper products show over 100% premiums. Coffee, cereal, and chocolate see about 50% higher prices.

Understanding Customer Segments

• Millennials, well-educated shoppers, city dwellers, and high earners buy these products.
• In dairy, the appeal of sustainability spans all age groups.
• Marketers can target buyers by matching product features with customer segments.

Effective Marketing Approaches for Sustainable Products

Connecting Sustainability to Core Product Qualities

Research shows that a simple mix of one key product quality (like taste or strength) with one or two sustainability claims can boost appeal by 30 percentage points. This approach works better than talking only about sustainability or overloading on claims. For instance, in skincare, pairing “sustainable ingredients” with benefits for skin health helps consumers see clear value.

Prioritizing Credible Sustainability Claims

Consumers respond when claims show clear benefits. They like messages that protect health, save money, support local farms, help future generations, and care for animals. Claims about biodegradability or climate neutrality, as well as packaging and certification claims, matter less. Still, certified seals help some buyers and regulators trust the claims.

Ensuring Precision and Evidence

Terms like “natural” or “clean” can be vague. They even lead to legal issues, especially for products for children or food items. Firms must follow changing rules. For example, the EU has a Corporate Sustainability Reporting Directive and a proposed Green Claims Directive. Both demand clear scientific proof. Building a traceable supply chain and sharing a clear value chain analysis help prove the claims.

Strategic Takeaways for Marketing Leaders

1. Clarify the Business Case: Show strong growth rates and price power in sustainability.
2. Target the Right Consumers: Tailor messages that match key groups who favor sustainable products.
3. Craft Harmonious Messages: Link a product’s core strengths with clear sustainability claims.
4. Validate Claims Rigorously: Use clear, evidence-based statements to build trust and meet strict regulations.

About the Authors
Dr. Tensie Whelan is the Distinguished Professor of Practice at NYU Stern and leads the Center for Sustainable Business. David Linich is a decarbonization and sustainability expert and the principal at PwC US.

This data-driven approach helps sustainable product marketers plan for growth, earn price premiums, and build trust. It offers a clear roadmap to meet market demands and regulatory challenges.

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.