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

Overview

Sustainable consumer products are seeing significant market growth, yet companies often face challenges in effectively marketing them. NYU Stern’s Center for Sustainable Business (CSB) and PwC partnered to identify strategies that clarify business value, enhance customer appeal, and build credibility around sustainability claims.

Key Findings on Sustainable Products’ Market Performance

• Growth Rate: Sustainability-marketed products experienced an annual sales growth of 12.3% from 2019 to 2024, outpacing conventional products by over two times.
• Market Share: These products accounted for nearly 24% of overall consumer packaged goods (CPG) sales in 2024 (covering 36 categories, excluding alcohol and tobacco).
• Price Premiums: PwC’s 2024 consumer survey revealed shoppers willing to pay on average 9.7% more for sustainable goods. Actual market data show these products command an average premium of 26.6%, exceeding 100% in some paper products and approximately 50% in coffee, cereal, and chocolate categories.

Marketing Strategies for Sustainable Products

1. Clarify the Business Case

• Identify and target customer segments most inclined to buy sustainable goods: millennials, college-educated shoppers, urban residents, and high-income earners.
• Recognize product categories where sustainability commands strong market share, such as dairy, appealing broadly across age groups.

2. Amplify Appeal by Aligning Sustainability with Core Product Attributes

• Successful marketing pitches emphasize the primary benefit (taste, quality, performance) while layering one or two compelling sustainability claims.
• CSB and Edelman research found that combining a product’s core attribute with two relevant sustainability messages can increase appeal by 30 percentage points.
• Example: For skincare products, tying sustainability to benefits like "formulated with sustainable ingredients that are good for your skin" resonates strongly.

3. Build Trust with Precise, Evidence-Based Claims

• Consumers value and trust claims that relate to human health protection, cost savings, local food systems, future generations, animal health, and local or sustainable sourcing.
• Less effective are claims focusing narrowly on scientific jargon (biodegradability, climate neutrality), traceability details, or generic certifications without supporting context.
• Companies should avoid ambiguous claims such as “clean,” “natural,” or “safe” to reduce legal risks, particularly for products used by children or applied to skin.
• Stay updated on evolving regulations, especially in the EU, where directives like the Corporate Sustainability Reporting Directive and the proposed Green Claims Directive require scientific substantiation and supply chain transparency.

Actionable Recommendations for Marketers

• Know your audience: Tailor sustainability messaging to segments with higher purchase propensity.
• Connect sustainability to product benefits: Support core qualities customers value while embedding sustainability attributes that align with those qualities.
• Back claims with data: Provide clear evidence and avoid vague or generic statements. Monitor legal frameworks to ensure compliance.
• Leverage certification seals wisely: Use them to validate claims yet combine with more relatable messaging to enhance consumer trust.

Conclusion

Sustainably marketed products not only contribute positively to the environment but also offer substantial growth opportunities and price premiums. By strategically aligning sustainability messaging with core product attributes and ensuring credible, transparent claims, businesses can better connect with consumers and harness the full value of sustainability in their marketing efforts.

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.