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

Marketing sustainable consumer products presents unique challenges for companies aiming to tap into the growing green demand. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC offers evidence-based strategies for marketing leaders to unlock the full value of sustainable products by clarifying the business case, enhancing product appeal, and ensuring credibility in sustainability claims.

The Business Case for Sustainability in Consumer Products

Sustainability is no longer a niche market trend—it’s a driver of growth and premium pricing. An analysis of 12 years of US point-of-sale data across 36 consumer goods categories (covering about 40% of the consumer packaged goods market) by NYU Stern CSB revealed that sustainability-marketed products grew sales at an annual rate of 12.3% from 2019 to 2024, outpacing conventional products by over twice the rate. By 2024, these products accounted for nearly 24% of total category sales.

Price premiums provide further incentive: a 2024 PwC survey of 20,000 consumers found willingness to pay an average 9.7% higher price for sustainable goods. Real market data reinforces this—sustainability-marketed products commanded an average price premium of 26.6%, with some categories like paper products exceeding 100%, and coffee, cereal, and chocolate around 50%.

Takeaway: Sustainable products offer substantial growth potential and premium pricing opportunities, justifying investment in their development.

Understanding Customer Segments and Category Reach

Certain consumer groups, including millennials, college-educated shoppers, urban dwellers, and higher-income earners, show greater propensity to purchase sustainability-marketed products. Notably, some categories like dairy display strong sustainable product sales across all age groups.

Takeaway: Identifying which customer segments are most likely to buy sustainable products in your categories is critical for targeted marketing.

Crafting Marketing Messages That Resonate

Effective sustainable product marketing mirrors the precision of music production—finding the right mix of messages that customers find appealing. Research by CSB and Edelman indicates that:

• Messages anchored in a core product attribute (e.g., taste, cleanliness) combined with one to two sustainability claims outperform pitches focused solely on sustainability.
• This approach increases product appeal by approximately 30 percentage points on average across all customer groups.

Example: For skincare, combining “formulated with sustainable ingredients” with a direct benefit like “good for your skin” connects sustainability with what matters most to consumers.

Takeaway: Layer sustainability messages onto strong product benefits to maximize consumer appeal.

Elevating Trust with Credible Sustainability Claims

Not all sustainability claims resonate equally. CSB and Edelman research shows consumers value claims emphasizing:

• Protection of human health (absence of harmful ingredients)
• Cost savings
• Support for local farms and food systems
• Benefits for children and future generations
• Animal health preservation
• Use of local or sustainable sources

Conversely, claims about biodegradability, climate-neutrality, traceability, packaging (except all-recycled content), and certifications alone tend to have lower direct consumer appeal, despite their regulatory importance.

Takeaway: Prioritize claims that highlight tangible consumer benefits and social responsibility for stronger connection.

Importance of Precision and Evidence in Claims

Ambiguous descriptors like “clean,” “natural,” or “safe” are prone to legal challenges, especially for products used by vulnerable groups such as children. Companies must:

• Provide clear, precise, and evidence-backed sustainability claims.
• Monitor evolving regulatory frameworks like the EU Corporate Sustainability Reporting Directive, Due Diligence Directive, and the proposed Green Claims Directive requiring scientific substantiation.
• Build value chain transparency and traceability to support claims credibly.

Takeaway: Legal risks and increasing regulation necessitate rigorous validation and transparency in sustainability marketing.

Conclusion

The partnership between NYU Stern CSB and PwC underscores that sustainable products are not only good for the planet but also present a viable business opportunity. To harness this potential, marketing leaders should:

1. Understand customer segments and category dynamics.
2. Integrate sustainability messaging with compelling core product benefits.
3. Highlight sustainability claims that deliver clear consumer value.
4. Ensure claims are precise, evidence-based, and compliant with evolving regulations.

By embracing these research-backed principles, consumer product companies can more effectively market sustainable offerings, drive growth, command price premiums, and build lasting consumer trust.

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

Related Insights

• How the EU’s Green Deal is driving business reinvention
• The CEO’s sustainability checklist for climate-transition strategy

This comprehensive, data-driven approach provides actionable guidance that marketing leaders in sustainability-focused businesses can leverage to enhance both market performance and consumer impact.

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.