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

Sustainable consumer products are increasingly favored by shoppers, yet companies face challenges proving their growth potential and justifying investments in sustainable product development. Equally difficult is balancing sustainability with other valued product features and building customer trust amid a landscape crowded with competing claims and certifications.

Strong Growth and Price Premiums for Sustainable Products

Research by NYU Stern’s Center for Sustainable Business (CSB) analyzing 12 years of U.S. consumer packaged goods (CPG) sales data from Circana reveals that products marketed with sustainability attributes grew nearly 12.3% annually between 2019 and 2024. This growth rate is 2.3 times faster than conventional products, pushing sustainable offerings to nearly a 24% share of overall sales in 2024. Price premiums further demonstrate consumer willingness to pay more: a PwC survey of 20,000 consumers in 2024 showed an average willingness to pay 9.7% more for sustainably produced goods. Real market data supports this with an observed average premium of 26.6%, reaching over 100% for some paper products and around 50% in categories such as coffee, cereal, and chocolate.

Effective Marketing Strategies for Sustainable Products

1. Target Key Customer Groups and Categories

CSB research highlights that millennials, college-educated consumers, urban dwellers, and high-income earners lead in purchasing sustainable products. Awareness of which customer segments within your product categories are more inclined towards sustainability is critical for market penetration.

2. Connect Sustainability to Core Product Attributes

Successful marketing blends product quality with sustainability. Similar to composing a hit song, marketers should harmonize core product benefits (e.g., taste or effectiveness) with one or two strong sustainability messages. Research by CSB and Edelman shows that combining a core product claim with two sustainability messages boosts product appeal by 30 percentage points, outperforming marketing with multiple core claims alone.

For example, a skincare product marketed as “formulated with sustainable ingredients that are good for your skin” ties sustainability to a primary consumer concern, making the messaging more compelling.

3. Prioritize Sustainability Claims Consumers Trust and Value

Surveys reveal six sustainability-related claims resonate strongly with shoppers, especially those emphasizing direct consumer benefits such as:

• Protecting human health by excluding harmful ingredients
• Saving money
• Supporting local farms and food systems
• Benefiting children and future generations
• Preserving animal health
• Sourcing from local or sustainable origins

Conversely, claims focusing solely on scientific properties (e.g., biodegradability or climate-neutral status), traceability, or generic certification seals tend to have lower consumer appeal. While certifications help validate claims for regulators and some buyers, additional, targeted messaging enhances trust and effectiveness.

4. Ensure Precision and Evidentiary Support for Claims

Ambiguous claims like “clean,” “natural,” or “safe” invite legal challenges, especially for products used by vulnerable populations such as children. Companies must provide clear, evidence-backed claims that keep pace with evolving regulations, especially in jurisdictions like the EU, where directives such as the Corporate Sustainability Reporting Directive and the proposed Green Claims Directive mandate scientific substantiation and transparent supply chain analysis.

Building robust capabilities in value chain traceability and sustainability performance verification positions companies to mitigate risk and increase consumer confidence.

Conclusion

By clarifying the business case, tailoring marketing messages for maximum appeal, focusing on credible sustainability claims aligned with consumer values, and rigorously validating those claims, companies can fully realize the growth and price premium potential of sustainable products. These insights from NYU Stern’s CSB and PwC provide a practical roadmap for marketing leaders aiming to lead in the competitive, evolving sustainable products marketplace.

Authors: Tensie Whelan, Distinguished Professor at NYU Stern and Founding Director of CSB; David Linich, Principal at PwC US specializing 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.