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

Sustainable consumer products have strong market appeal. Companies face challenges. They must create messages that connect with customers and justify investments. NYU Stern’s Center for Sustainable Business and PwC provide clear, evidence-backed steps to improve marketing and sales.

Strong Growth and Price Premiums for Sustainable Products

• From 2019 to 2024, products marketed for sustainability grew at a rate of 12.3% each year.
  – These products now make up 23.8% of consumer packaged goods sales by 2024.
  – This rate is twice that of regular products.

• Consumers show a willingness to pay more for products made sustainably.
  – They are ready to pay 9.7% extra.
  – In real sales, prices rise by an average of 26.6%.
  – Some items like paper rise by over 100%, while coffee, cereal, and chocolate go up by about 50%.

Identifying Target Customers and Product Categories

Millennials, city residents, college graduates, and high-income buyers show higher purchase rates.
• Many product types, such as dairy, attract a wide range of ages.
• Marketers need to know which groups support each product category for better focus.

Crafting Appealing Sustainability Messages

Marketers mix product features and one or two strong sustainability points.
• For example, a chocolate bar that is called “rich and delicious” and carries a sustainability claim can gain 30 percentage points in appeal.
• Messages work best when they directly link to real product benefits.
  – In skincare, for instance, a claim about “sustainable ingredients good for your skin” fits well.

Elevating Credible Claims Consumers Trust

Claims that work best are clear and direct. They focus on:
  – Protecting people (for example, no harmful ingredients)
  – Saving money
  – Supporting local farms and food systems
  – Caring for future generations
  – Animal health
  – Local or sustainable sourcing

Not all claims work well. Words like biodegradability, climate neutrality, traceability, or simply showing a certification may not be enough.

Ensuring Clarity and Compliance

Ambiguous words such as “natural,” “clean,” or “safe” may invite legal issues. This risk grows when products target children or skin use.
• Companies must be open about their methods.
• They need strong proof to back each claim.
• New rules, like the EU’s Corporate Sustainability Reporting Directive, Due Diligence Directive, and the coming Green Claims Directive, ask for scientific proof and clear supply chain records.

Strategic Takeaways for Marketing Leaders

1. Clarify the Business Case
     – Show that sustainable products drive growth and earn premium prices.

2. Target Key Demographics
     – Focus on groups who are likely to buy in each product category.

3. Blend Core and Sustainability Attributes
     – Merge the core product features with clear, strong sustainability claims.

4. Focus on Trusted Benefits
     – Emphasize health, savings, local support, and benefits to future generations.

5. Be Precise and Evidence-Based
     – Use solid evidence to support claims. This avoids both customer doubts and regulatory issues.

6. Prepare for Regulatory Changes
     – Build strong checks on every part of the supply chain.

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

These clear, evidence-based steps help companies connect with customers. They unlock sustainability’s full value and promote meaningful growth in today’s eco-friendly market.

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.