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

Sustainable products attract more buyers now. Many companies find it hard to market them well. NYU Stern’s Center for Sustainable Business and PwC share clear ideas. Their research helps firms grow and win customer trust with sustainability.

The Rising Business Case for Sustainable Products

Data from Circana show strong growth. Sustainability-marketed products grew sales by 12.3% each year from 2019 to 2024. This pace is more than twice that of conventional products. By 2024, these items made up nearly 24% of consumer packaged goods sales (without alcohol and tobacco).

Price premiums add to the appeal. PwC’s 2024 survey shows shoppers pay 9.7% more for sustainable goods. CSB data show actual premiums average 26.6%. In some cases, like paper products, premiums exceed 100%. Categories such as coffee, cereal, and chocolate see premiums near 50%.

Targeting the Right Consumer Segments

Consumer groups matter. Millennials, college graduates, urban dwellers, and higher-income earners buy more sustainable products. Some categories, like dairy, sell well across age groups and earn price premiums.

Companies must pinpoint which shopper segments favor sustainability. This clear focus makes their marketing more effective.

Crafting Compelling and Credible Marketing Messages

A strong pitch links a product’s main benefits with a clear sustainability claim. Research by CSB and Edelman notes that one or two focused claims can boost appeal by 30 percentage points. Too many claims can lessen the impact.

Recommendations for Effective Messaging:

• Link Sustainability to Core Product Attributes:
  For example, in skincare, say “made with sustainable ingredients that care for your skin.” This connects a benefit to sustainability.

• Focus on High-Value Sustainability Claims:
  Consumers react well to claims about better health, saving money, supporting local farms, protecting animals, or securing a better future for children.

• Avoid Less Effective Claims Alone:
  Words like “biodegradable,” traceability details, or certifications work less well when used on their own. They add weight only when matched with clear benefits.

Ensuring Transparency and Compliance

Vague claims such as “natural” or “safe” invite legal risks. This danger grows for products used on children or taken in. Companies must support claims with robust evidence. They should also watch for new rules. In the EU, directives like the Corporate Sustainability Reporting Directive and the proposed Green Claims Directive set strict standards.

Building strong value chain tracing and sustainability checks is key to keeping trust and meeting legal demands.

Authors

• Tensie Whelan, Distinguished Professor of Practice, NYU Stern and Founding Director of the NYU Stern Center for Sustainable Business

• David Linich, Principal, PwC US, expert in decarbonization and sustainable operations

Conclusion

Sustainable products offer firms growth and pricing advantages. Success needs clear strategies that blend strong product benefits with solid sustainability claims. Transparency and legal compliance build lasting customer trust and business strength.

For companies committed to advancing sustainable commerce, these clear marketing ideas help unlock the full value of sustainable products while meeting both consumer needs and regulatory rules.

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.