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

Sustainable products win shoppers. Companies face a real challenge. They must catch green demand well. Research from NYU Stern’s CSB and PwC gives clear tips. Marketers learn to boost appeal and trust in green goods.

Growing Market Potential for Sustainable Goods

• Robust Sales Growth: Data from 12 years in the U.S. uses point-of-sale data. It covers 36 product groups and 40% of packaged goods. Products with green tags grew an average of 12.3% each year from 2019 to 2024. This rise is more than twice that of standard goods.
• Market Share Expansion: By 2024, green-tagged goods held 23.8% of total sales in these groups.
• Price Premiums: PwC’s 2024 survey shows shoppers pay nearly 10% more for green goods. CSB data finds an average extra cost of 26.6%. Some paper products may see a 100% premium. Coffee, cereal, and chocolate enjoy a 50% rise.

Strategies for Marketing Sustainable Products Effectively

1. Clarify the Business Case and Target Audience

Green products click best with millennials. They also please college-educated buyers, urbanites, and those with higher income. Some groups, like dairy, work for all ages. These groups show clear green price benefits. Marketers need to pick key consumer groups to shape their pitch.

2. Amplify Appeal by Linking Sustainability with Core Product Qualities

Research shows that pairing a strong product quality with one or two green claims helps. For example, say “rich and delicious chocolate” next to a green claim. This tag can raise product appeal by up to 30 percentage points. Green claims must connect to clear product benefits. For example, skin care uses natural, green ingredients that help your skin.

3. Elevate Credible, Trusted Sustainability Claims

Shoppers trust claims that stress personal and social benefits. They like to hear claims that protect health, save money, support local farms, help future generations, care for animals, and use local or green materials. Claims that use only scientific words (like “biodegradable”), packaging notes (unless it is all-recycled), traceability, or seals on their own do not work as well. Certification seals add proof, but clear words must back them up.

4. Ensure Precise and Evidence-Based Claims Amid Regulatory Scrutiny

Claims such as “clean” or “natural” can confuse or mislead. They may start legal problems, especially for children’s products or skin items. New rules in the EU, like the Corporate Sustainability Reporting Directive, the Due Diligence Directive, and the proposed Green Claims Directive, need clear proof and honest words. Companies must invest in strong value chain checks and trace systems to prove green claims and to meet new rules.

Conclusion

Green product marketing is a smart way to grow and stand out in packaged goods. First, know who values green ideas. Then, link green claims with key product points. Finally, use clear and true green words. This path builds trust and meets tough green rules at once.

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

Key Topics: Consumer packaged goods, marketing strategies, product sustainability, sustainable consumer products, price premiums, regulatory compliance, sustainability claims, customer segmentation

Embracing research-backed tips helps brands thrive. This simple, clear path drives profits and a positive green 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.