A Better Way to Market Sustainable Products: Key Insights from NYU Stern and PwC Research
Understanding the Green Consumer Market
Sustainable products gain strong consumer preference. Companies face many challenges. They must show that sustainable goods can grow sales and earn higher prices. Companies prove growth potential. They also prove that higher prices can justify investment. Marketers balance green benefits with other valued product features. They must also give clear, honest messages against competing claims and certifications.
Proven Growth and Price Premiums for Sustainable Products
NYU Stern’s Center for Sustainable Business studied 12 years of U.S. point-of-sale data. They analyzed 36 consumer packaged goods categories. The research shows sustainable goods grow faster than conventional products. These products grew nearly 12.3% each year from 2019 to 2024. This rate is more than double that of ordinary items. By 2024, sustainable products made up 23.8% of total sales in these categories.
Price premiums are significant. A 2024 PwC survey shows consumers pay 9.7% more on average for green goods. CSB data explains that the average premium reaches 26.6%. Some paper products even exceed a 100% premium. Categories like coffee, cereal, and chocolate average around a 50% premium.
Strategies for Marketing Sustainable Products Successfully
1. Recognize Target Customer Segments
Some groups choose sustainable products more often. Millennials, college-educated buyers, urban residents, and high-income earners tend to purchase these goods. Knowing which group fits a product is critical. This knowledge helps marketers reach the right consumers.
2. Amplify Appeal by Linking Sustainability to Core Product Qualities
Marketers combine a product’s main benefit with one or two green claims. They pair features like taste, scent, or performance with sustainability. CSB and Edelman found that this mix raises appeal by up to 30 percentage points. For example, skincare that uses sustainable ingredients and boosts skin health resonates well.
3. Promote Credible, Consumer-Valued Claims
Consumers value clear and tangible benefits. They trust claims such as:
• Protecting human health by avoiding harmful chemicals
• Saving money
• Supporting local farms and food systems
• Safeguarding animal health
• Benefiting future generations
• Sourcing from trustworthy local or sustainable origins
Claims only about biodegradability, climate neutrality, traceability, or recycled packaging are less persuasive unless the benefits are clear.
4. Ensure Precision and Evidence in Claims
Vague words like “clean” or “natural” can lead to legal issues. This is especially true for products used by children or on the skin. Companies must follow evolving regulations. Europe has rules like the Corporate Sustainability Reporting Directive. The EU Green Claims Directive may soon require scientific proof for green claims. Building traceability and analyzing the supply chain can help companies meet these rules.
Conclusion: Unlocking the Full Value of Sustainability in Marketing
Sustainable product marketing can drive growth and allow for premium pricing when done right. Research from NYU Stern CSB and PwC offers clear steps for success:
• Identify key consumer groups
• Blend sustainability with core product quality
• Use clear, evidence-backed claims that deliver benefits
Following these steps builds consumer trust, differentiates brands, and supports a shift toward a more sustainable market.
Authors:
Tensie Whelan, Distinguished Professor and Founding Director of NYU Stern Center for Sustainable Business
David Linich, Principal at PwC US, Specialist in Decarbonization and Sustainable Operations
Source: NYU Stern Center for Sustainable Business & PwC, May 21, 2025
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.
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