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

Sustainable products continue to gain traction in consumer markets, yet effectively marketing these products remains a major challenge for companies. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC reveals strategic approaches that can help businesses unlock the growth potential and price premiums associated with sustainability.

The Business Case for Sustainability

• Robust Growth: Analyzing 12 years of U.S. point-of-sale data from Circana, covering 36 consumer goods categories (about 40% of the market), CSB found sustainability-marketed products grew sales by 12.3% annually (2019–2024) — over twice the pace of conventional products.
• Market Share: By 2024, sustainable products held nearly 24% of total sales in these categories.
• Price Premiums: PwC’s 2024 survey of 20,000 consumers showed willingness to pay an average premium of 9.7% for sustainable goods. CSB studies indicate the actual price premium averages 26.6%, reaching over 100% in categories like paper products and around 50% for coffee, cereal, and chocolate.

Targeting the Right Consumers and Categories

• Key Audiences: Millennials, college-educated shoppers, city dwellers, and high-income earners are more likely to purchase sustainability-marketed products.
• Category Importance: Sustainable products already command significant shares and premiums in key sectors such as dairy, cutting across all age groups.
• Actionable Insight: Companies should identify which customer segments and product categories offer the best opportunities to amplify sustainable offerings.

Crafting Compelling Sustainability Messages

• Core + Sustainability Blend: Effective marketing combines a product’s core quality (e.g., rich taste of chocolate, clean scent of soap) with one or two targeted sustainability claims. This approach boosts appeal by 30 percentage points on average.
• Category-Relevant Claims: Messages resonate best when tied to attributes meaningful to consumers in the product’s category. For example, skincare products marketed as “formulated with sustainable ingredients that are good for your skin” link sustainability directly to consumer benefits.

Credible and Consumer-Centered Claims

• Most Trusted Claims: Consumers respond strongly to sustainability claims focused on benefits such as:
  • Protecting human health (free from harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Supporting children and future generations
  • Preserving animal health
  • Originating from local or sustainable sources
• Less Effective Claims: Scientific attributes (biodegradability, climate-neutral claims), traceability, packaging (except all-recycled content), and sustainability certifications alone have less consumer appeal.
• Certifications Matter: Seals validate claims for regulators and certain buyers but require complementary messaging to boost impact.

Compliance and Evidence-Based Communication

• Avoid Ambiguity: Vague claims like “clean,” “natural,” or “safe” risk regulatory challenges and lawsuits, especially for products used by children or applied to skin.
• Regulatory Landscape: Companies must track evolving regulations such as the EU’s Corporate Sustainability Reporting Directive and the potential Green Claims Directive, which require scientific substantiation of environmental claims.
• Operational Readiness: Building strong capabilities in value chain analysis and traceability will be crucial for sustaining credible sustainability claims.

Conclusion

Marketing sustainable products successfully hinges on clear business justification, targeted messaging that blends core product attributes with meaningful sustainability claims, and precise, evidence-backed communication that consumers trust. Businesses investing in these approaches can capture growing consumer demand and command significant price premiums while advancing sustainability goals.

About the Authors:

• Tensie Whelan is Distinguished Professor of Practice and Founding Director of NYU Stern’s Center for Sustainable Business.
• David Linich is a principal at PwC US specializing in decarbonization and sustainable operations.

For brands and marketers aiming to thrive in the sustainable product space, this research offers valuable, actionable strategies to connect with consumers authentically and effectively.

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.