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

Sustainability now drives the consumer products market. NYU Stern’s Center for Sustainable Business (CSB) and PwC have studied it. Their research shows simple steps. These steps connect sustainability to clear business gains.

The Growing Business Case for Sustainable Products

• Market Growth: Circana data shows that sustainable consumer packaged goods grew at a rate of 12.3% a year from 2019 to 2024. This pace is more than twice that of ordinary products.
• Market Share: By 2024, almost 24% of total CPG sales came from sustainable products, measured across 36 product groups.
• Price Premium: PwC surveys prove that buyers will pay up to 10% extra for sustainable items. In practice, the premium reached an average of 26.6%. Some product groups, like paper goods, even hit over 100%.

Implication: Sustainable products can boost revenue. They also justify investment in development and marketing.

Key Strategies to Realize the Full Value of Sustainability

1. Recognize Customer Segments and Product Categories

Millennials, educated buyers, city dwellers, and high-income shoppers purchase more sustainable products. Essential products, such as dairy, show strong shares across groups. A close match between buyers and product types makes marketing work better.

2. Link Sustainability to Core Product Qualities

A good marketing mix pairs sustainability with key product benefits like taste and effectiveness. CSB and Edelman research show that linking one or two clear sustainability points to a main product claim can boost appeal by 30 percentage points. For example, a skincare product that states “formulated with sustainable ingredients that are good for your skin” ties together health and sustainability.

3. Advance Precise and Credible Sustainability Claims

Claims that stress direct benefits work best. They protect health, save money, support local food systems, care for animals, and help future generations. Simple terms work better than complex ones like biodegradability or climate-neutrality. Vague words such as “natural” or “clean” may invite legal issues, especially with products for children or edible goods. Companies must track rules like the EU’s Corporate Sustainability Reporting Directive and the Green Claims Directive. These rules need proof and clarity.

Takeaway Actions for Marketing Leaders

• Know your audience: Focus on customer groups who care most about sustainability.
• Craft layered messaging: Merge main product benefits with clear sustainability points.
• Build trust: Back up claims with strong evidence, show transparency, and follow the rules.
• Invest in value chain traceability: Prove sustainability at every stage of production and sourcing.

Conclusion

Sustainability has become a key driver in consumer products. Clear and research-backed marketing builds customer trust and creates growth. As rules grow stricter, companies that use simple, evidence-based words will lead the market toward a sustainable future.

Author Profiles:
Tensie Whelan is a Distinguished Professor of Practice at NYU Stern and the Founding Director of the NYU Stern Center for Sustainable Business. David Linich is a Principal at PwC US, who focuses on decarbonization and sustainable operations.

By using these clear ideas, brands can link closely with consumers. This approach builds trust and drives both impact and profit.

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.