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

Sustainable products continue to gain traction among consumers, yet companies face challenges in effectively marketing these goods. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC sheds light on how firms can better connect with customers and unlock the full potential of sustainability-driven products.

The Growth and Value of Sustainable Products

• Impressive Growth: Analysis of 12 years of U.S. point-of-sale data across 36 consumer packaged goods (CPG) categories shows that products marketed with sustainability attributes grew at an average annual rate of 12.3% from 2019 to 2024, over twice as fast as conventional products. By 2024, sustainability-marketed items accounted for nearly 24% of overall CPG sales.

• Price Premiums: Consumers demonstrate a willingness to pay more for sustainably produced goods. A 2024 PwC survey of 20,000 consumers revealed an average premium willingness of 9.7% above average prices, while actual market data shows sustainability-marketed products commanding an average price premium of 26.6%, with some categories like paper products exceeding 100% premiums.

Key Principles to Maximize Marketing Impact

1. Understand Customer Segments and Category Reach

• Millennials, college-educated shoppers, urban dwellers, and high-income earners are the most active purchasers of sustainability-marketed goods.
• Certain categories, notably dairy, see significant sustainability product sales across all age groups.
• Companies must identify which customer groups within their product categories are most receptive to sustainable offerings to effectively target marketing efforts.

2. Connect Sustainability with Core Product Qualities

• Effective sustainable product marketing resembles crafting a hit song: it requires blending the product’s core attributes (taste, feel, efficacy) with 1–2 well-chosen sustainability messages.
• A combined approach—highlighting the product’s primary appeal plus sustainability benefits—increases overall product appeal by an average of 30 percentage points.
• Example: Skincare products perform best when sustainability claims emphasize benefits to skin health alongside eco-friendly sourcing.

3. Use Credible, Consumer-Valued Sustainability Claims

• Claims that resonate most highlight direct consumer benefits such as:

  • Protecting human health (free from harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Preserving animal health
  • Supporting children and future generations
  • Originating from local or sustainable sources

• Less effective are claims focused solely on scientific attributes (biodegradability, climate neutrality), traceability, packaging (except all-recycled content), or certification seals alone.

4. Be Precise, Evidence-Based, and Compliant

• Ambiguous claims like “clean,” “natural,” or “safe” risk legal challenges, especially for products used by vulnerable groups (children, skin-applied, ingestibles).

• Companies should monitor evolving regulations, including:

  • EU’s Corporate Sustainability Reporting and Due Diligence Directives
  • Proposed Green Claims Directive requiring scientific substantiation of environmental claims

• Robust value chain analysis and traceability capabilities are essential for credible, defensible claims.

Conclusion

For brands aiming to grow in the sustainable products market, the path forward involves:

• Making a clear business case grounded in robust sales and premium data
• Crafting marketing messages that marry product excellence with powerful, relatable sustainability benefits
• Ensuring claims are consumer-trusted and legally compliant, supported by strong evidence and transparency

By embracing these research-backed strategies, companies can effectively engage eco-conscious consumers, justify sustainability investments, and build lasting competitive advantage in the green 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.

Related Insights

• How the EU’s Green Deal Is Driving Business Reinvention
• The CEO’s Sustainability Checklist: Ten Questions for Climate-Transition Strategy

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