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

Sustainability drives consumer products. This trend grows fast. Companies face hurdles when they try to market green products well. NYU Stern’s Center for Sustainable Business and PwC lead research that shows clear ways to improve. The research brings together the appeal and trust of sustainable goods with simple, strong messages.

The Business Case for Sustainable Products

Sustainable products perform well in the market. They grow and win share. Data shows that from 2019 to 2024, U.S. sustainable products grew by 12.3% every year. This growth is twice the rate of regular products. By 2024, sustainable products made up 23.8% of all consumer packaged goods sales in 36 different categories. A PwC 2024 survey of 20,000 people finds that consumers are willing to pay 9.7% more for these green goods. NYU Stern’s data shows that the real price bonus averages 26.6%. Some items, like paper products, see over 100% extra cost, and coffee, cereal, or chocolate near 50%. These points show that sustainability meets consumer demand and boosts revenue and profit.

Identifying Key Customer Segments

Certain buyers like sustainable items the most. Millennials care for green solutions. College-educated shoppers choose green products. Urban dwellers and high-income earners also lead the way. Yet, sustainable items sell across many age groups in key categories like dairy. Marketers must know which customer groups buy green items in each category.

Amplifying Appeal Through Messaging

Marketers mix product benefits with a sustainability layer. First, they show the product’s core appeal—taste, smell, or performance. Then they add one or two clear sustainability claims. This mix lifts product appeal by about 30 percentage points. For example, skincare might say, "Formulated with sustainable ingredients that are good for your skin." This sentence puts a core benefit first and then adds the green claim. Using this method, messages cut through the noise for all customer groups.

Promoting Credible and Trustworthy Claims

Consumers trust claims that show clear benefits. Claims that protect health, save money, or support local farms win trust. Messages that help children, animals, or the local food system also matter. Claims that use scientific terms like biodegradable or climate-neutral, or that only mention traceability, tend to work less well. Certification seals can help, but clear and extra messaging builds trust more.

Ensuring Precision and Compliance

Ambiguous words like "natural" or "safe" can lead to legal troubles. This risk is larger for items for children or applied on skin. Companies must use precise, evidence-backed words. They must follow rules like the EU’s Corporate Sustainability Reporting Directive, Due Diligence Directive, and the Green Claims Directive. They should build strong methods for value chain analysis and traceability. This work backs their claims with proof.

Conclusion

Marketing sustainable products well means three things. First, the business case must be clear. Second, messages must tie core product benefits with green features. Third, all claims must be credible and follow the law. When companies use these data-backed steps, they meet green demand, justify higher prices, and earn lasting trust.

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

Published May 21, 2025
Tags: Consumer Packaged Goods, Marketing Strategies, Sustainability, Sustainable Products

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