A Better Way to Market Sustainable Products

Overview

Despite growing consumer preference for sustainable goods, many companies face challenges in effectively marketing these products. Key hurdles include proving the business value of sustainability, balancing eco-friendly attributes with core product features, and establishing consumer trust amid numerous claims and certifications.

Research Insights from NYU Stern’s Center for Sustainable Business and PwC

Collaborative research by NYU Stern’s Center for Sustainable Business (CSB) and PwC, based on 12 years of US sales data, reveals strong growth and premium pricing trends for sustainability-marketed consumer packaged goods (CPG):

• Growth: Sustainability-marketed products grew sales nearly 12.3% annually from 2019 to 2024, 2.3 times faster than conventional items.
• Market Share: These products captured 23.8% of total sales in 2024.
• Price Premiums: Consumers are willing to pay an average of 9.7% more; actual premiums average 26.6%, reaching over 100% in some categories like paper products, and 50% in coffee, cereal, and chocolate.

Smart Marketing Strategies for Sustainable Products

1. Clarify the Business Case

Knowing which customer segments favor sustainable products is critical. Millennials, college-educated shoppers, urbanites, and high-income earners lead purchases across many categories. Products like dairy feature sustainability-marketed items with sizable price premiums across age groups.

2. Amplify Product Appeal

Sustainability messaging should complement, not replace, a product’s core qualities. Research with Edelman shows that pitches combining a strong core product attribute with one or two focused sustainability claims increase appeal by 30 percentage points. For example:

• A chocolate bar’s rich taste paired with sustainable sourcing claims.
• Skincare formulated with sustainable ingredients that also benefit skin health.

3. Elevate Credible, Consumer-Centric Claims

Effective claims highlight benefits that resonate with shoppers, such as:

• Protecting human health by avoiding harmful ingredients
• Saving money
• Supporting local farms and future generations
• Preserving animal health
  Less impactful claims relate to scientific properties (biodegradability, climate neutrality), traceability, or packaging, except all-recycled content. Certification seals aid regulatory validation but need complementary messaging for consumer trust.

4. Be Precise and Evidence-Based

Avoid vague claims like "clean" or "natural," which are prone to legal challenges, especially for products used by children or applied to skin. Companies should monitor evolving regulations like the EU’s Corporate Sustainability Reporting and Due Diligence Directives, and the proposed Green Claims Directive requiring scientific substantiation of environmental claims. Robust traceability and value chain analysis capabilities are essential.

Conclusion

Sustainably marketed products offer significant growth and premium opportunities. By understanding customer segments, integrating sustainability with core product strengths, focusing on credible claims, and adhering to regulatory standards, marketing leaders can fully realize the value of sustainability.

Authors:

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

Source: NYU Stern Center for Sustainable Business and PwC research, 2025

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.