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

Consumers now seek sustainable products. Companies now meet the need to market such products well. NYU Stern’s Center for Sustainable Business (CSB) and PwC offer clear, research-backed strategies. They show how a focused message can drive growth, raise prices, and build trust with buyers.

The Business Case for Sustainable Products

• CSB studied 12 years of US point-of-sale data using Circana data. They found that sustainable products grew at 12.3% each year from 2019 to 2024. These products grew 2.3 times faster than their conventional peers.
• In 2024, sustainable items made up 23.8% of all sales across 36 major consumer packaged goods categories.
• PwC’s 2024 survey of 20,000 consumers shows that shoppers often pay a 9.7% premium for sustainable items. CSB data confirms that some price premiums average 26.6%, with paper products sometimes more than 100% above the standard price.

Key Consumer Segments

• Millennials, college-educated buyers, urban shoppers, and high-income earners tend to favor sustainable choices.
• All age groups buy sustainable dairy and other specific products.
• Marketers should learn which customer groups lead in each product category and connect with them directly.

Crafting Appealing Sustainability Marketing Messages

• Start with the product’s core quality—its taste, scent, or feel—and add one or two clear sustainability claims.
• Pairing the core quality with two sustainability claims can lift appeal by 30 percentage points.
• Use sustainability claims that match the product. For example, skincare should say, “made with sustainable ingredients good for your skin.”

Prioritizing Credible and Trusted Claims

• Customers trust claims that protect their health (no harmful ingredients), save money, support local farms, benefit children and future generations, protect animal health, and come from local or sustainable sources.
• Claims about biodegradability, climate neutrality, traceability, or packaging (unless it is all-recycled) do not work as well by themselves.
• Certification seals validate the product. Yet, they need supporting messages to build trust.

Regulatory Landscape and Recommendations

• Claims like “clean,” “natural,” or “safe” can face legal issues. These words are risky for products used on skin or by children.
• European rules, such as the Corporate Sustainability Reporting Directive and the upcoming Green Claims Directive, demand solid, scientific proof for sustainability claims.
• Companies should build strong value chain reviews and traceable systems to meet these rules and gain trust.

Actionable Takeaways for Marketers

1. Clarify the business case. Show the proven growth and pricing benefits of sustainable products.
2. Amplify appeal wisely. Mix a product’s key features with one or two matching sustainability claims for strong impact.
3. Elevate credible claims. Focus on consumer-valued, evidence-backed claims and adjust as rules change.
4. Know your audience. Target marketing efforts to the groups most engaged with sustainable products.

About the Authors

• Tensie Whelan is a Distinguished Professor of Practice at NYU Stern and the Founding Director of the Center for Sustainable Business.
• David Linich is a Principal at PwC US. He works on decarbonization and sustainable operations.

By using these clear, research-based ideas, brands can meet consumer needs. They can build trust and grow their market as the demand for sustainable products rises. This approach benefits both business and our planet.

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.