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

Date: May 21, 2025
Authors: Tensie Whelan (NYU Stern Center for Sustainable Business), David Linich (PwC US)

The Challenge of Marketing Sustainable Products

Despite strong consumer preference for sustainable products, companies often struggle to capitalize on this demand. Challenges include:

• Demonstrating growth potential and justifying investment
• Balancing sustainability with other key product features
• Establishing trust amid competing and often confusing sustainability claims, labels, and certifications

The Business Case for Sustainability

Research by NYU Stern’s Center for Sustainable Business (CSB) and PwC, analyzing 12 years of U.S. sales data across 36 consumer packaged goods (CPG) categories, reveals:

• Sustainability-marketed products have grown sales by 12.3% per year (2019-2024), more than double the growth rate of conventional products.
• In 2024, these products accounted for nearly 24% of overall sales in the studied categories.
• Consumers show willingness to pay a premium—surveyed consumers said they would pay on average 9.7% more for sustainable goods.
• Actual price premiums average 26.6%, reaching over 100% in some product categories like paper goods, and around 50% for coffee, cereal, and chocolate.

Strategic Recommendations for Marketers

1. Recognize Product Category and Customer Segments

• Certain demographics (millennials, college-educated shoppers, urban dwellers, and high-income earners) are more inclined to buy sustainable products.
• Sustainability’s impact is broad, e.g., sustainable dairy products show strong sales across age groups.
• Understanding your category’s specific sustainable product reach and pricing power is a foundation for effective marketing.

2. Amplify Appeal by Connecting Sustainability to Core Product Qualities

• Effective marketing blends a product’s primary benefit with one or two sustainability attributes.
• Example: For a chocolate bar, emphasize its rich flavor complemented by sustainable sourcing.
• Research with Edelman shows this mix boosts product appeal by 30 percentage points on average—across all customer segments.
• Sustainability messages are most powerful when tied directly to the product feature customers value (e.g., sustainable ingredients linked to skin health in skincare).

3. Use Trustworthy, Consumer-Centric Claims

• Claims emphasizing direct consumer benefits resonate best, such as:
  • Protecting human health (absence of harmful ingredients)
  • Saving money
  • Supporting local farms and communities
  • Benefiting future generations and animal health
  • Utilizing local or sustainable sourcing
• Less effective are claims focused solely on scientific properties (biodegradability, carbon neutrality), traceability, or generic certifications without supporting context.
• Certifications help regulatory validation but need strengthening with clear, relatable messaging.

4. Be Precise and Evidence-Based

• Vague claims like “clean,” “natural,” or “safe” often face legal challenges, especially for products used by children or those applied to skin or ingested.
• Companies must stay ahead of tightening regulations, especially in the EU, including:
  • Corporate Sustainability Reporting Directive
  • Corporate Sustainability Due Diligence Directive
  • Proposed EU Green Claims Directive requiring scientific substantiation
• Strong capabilities in supply chain analysis and traceability help ensure claim accuracy and legal compliance.

Conclusion

Marketing sustainable products effectively demands a strategic, evidence-based approach that aligns sustainability attributes closely with what consumers value most in a product. Building trust through precise, credible claims and understanding distinct customer segments can unlock the significant growth and premium pricing potential of sustainability-driven goods.

About the Authors

• Tensie Whelan: Distinguished Professor of Practice at NYU Stern and Founding Director of NYU Stern Center for Sustainable Business
• David Linich: Principal at PwC US, expert in decarbonization and sustainable operations

By following these actionable insights, brands can confidently navigate the complex landscape of sustainability marketing, ultimately driving value for both the planet and their business.

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