A Better Way to Market Sustainable Products

Understanding the Growth Potential of Sustainable Goods

Research shows that sustainable consumer products grow fast. NYU Stern’s CSB and PwC find growth is strong. They study US sales data from 36 consumer packaged goods categories. Their work shows that sustainability-marketed products grow by 12.3% each year from 2019 to 2024. This rate is more than twice that of conventional goods. By 2024, these products make up nearly 24% of sales in these segments.

A PwC survey in 2024 shows that shoppers pay about a 9.7% premium for these products. Other evidence finds that sustainability items cost 26.6% more on average than usual goods. Some items, such as paper products, have premiums over 100%. Coffee, cereal, and chocolate products see premiums around 50%.

Key Consumer Segments and Category Insights

Millennials, college graduates, city dwellers, and high-income buyers lean toward sustainability-marketed items. These consumers often buy sustainable dairy and other core products. They also pay higher prices for them. Marketers need to target these groups in the right product categories. This focus turns sustainability efforts into business value.

Amplifying Appeal Through Strategic Messaging

Successful sustainable marketing ties the product’s best features with a clear sustainability message. CSB and Edelman show that strong pitches first state the product’s top quality—rich taste or effective cleaning work well. Then, one or two sustainability claims are added to boost appeal. This method lifts product appeal by around 30 percentage points. It works well with many consumer groups.

Examples:

• Skincare products: “Formulated with sustainable ingredients that are good for your skin.”
  Here, the claim links sustainability with skin care.

It helps to focus sustainability messages on features that matter in each product type.

Prioritizing Consumer-Valued and Trusted Claims

Some sustainability claims matter more than others. CSB and Edelman note that consumers look closely at claims that offer clear benefits. These include:

• Protecting human health by avoiding harmful ingredients
• Saving money
• Supporting local farms and food systems
• Caring for future generations
• Keeping animals healthy
• Sourcing from local or sustainable origins

Claims about scientific properties—like biodegradability, climate neutrality, and traceability—are less persuasive by themselves. Certification seals and packaging materials (except for all-recycled content) need extra context. They work best when paired with simple, direct claims.

Ensuring Precision and Credibility in Sustainability Claims

Terms like “clean,” “natural,” or “safe” can be vague. They may lead to legal issues, especially for products for children. New regulations, like the EU’s Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, and the proposed EU Green Claims Directive, demand clear proof of sustainability. Businesses must use precise and evidence-backed claims. They also need strong value-chain analysis and traceability. These tools help build consumer trust.

Conclusion

Marketing sustainable products well needs a clear business case and a consumer focus. It ties sustainability to a product’s real benefits. Marketers must offer solid, precise claims that follow new rules. By targeting the right customer groups and using clear, supported messages, companies can unlock growth and earn price premiums.

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

For businesses that embrace sustainability in consumer products, this research gives clear steps to strengthen brand trust, build differentiation, and drive long-term growth.

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.