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

Sustainability drives consumer markets. Companies face a hurdle when they market sustainable products. Research from NYU Stern’s Center for Sustainable Business and PwC shows that making clear, short links between ideas helps unlock growth, charge price premiums, and earn trust.

Sustainability Drives Strong Sales Growth and Price Premiums

• Impressive Growth: Twelve years of U.S. point-of-sale data (2019–2024) in 36 CPG categories show that products marked as sustainable grew nearly 12.3% per year. This growth rate is more than double that of conventional goods.
• Market Share: By 2024, sustainability-marketed items held 23.8% of total sales in the studied groups. They make up roughly 40% of the CPG market.
• Price Premiums: PwC’s 2024 survey of 20,000 consumers finds shoppers willing to pay an extra 9.7% for sustainable products. Data from CSB shows actual premiums average 26.6%, with some categories like paper achieving over 100%.

Key Customer Segments for Sustainable Products

• Demographics: Millennials, college-educated people, urban residents, and high-income earners show strong links with sustainability-marketed products.
• Category Focus: In categories like dairy, sustainable products sell well across all age groups.

Understanding which customers link easily to sustainability is vital. Marketers can then craft messages that form tight, clear bonds with these groups.

Crafting Effective Marketing Messages

Marketers join key product features with sustainable claims. They bring the product’s core trait (like taste or cleanliness) alongside one or two sustainability points. This union boosts product appeal by about 30 percentage points.

For example, in skincare the phrase “sustainable ingredients that are good for your skin” links market needs directly with sustainable benefits.

Sustainability Claims That Resonate with Consumers

• Claims about human health protection, cost savings, support for local farms and food systems, future generations, animal health, and local/sustainable sourcing connect strongly.
• Claims about scientific properties (like biodegradable or climate-neutral), traceability, general sustainability certifications, and most packaging points (except for all-recycled content) are less clear.
• Certification seals add a strong link but need clear supporting words to increase trust.

Ensuring Credibility and Compliance

Clear, tight links in language build trust. Vague words such as “clean,” “natural,” or “safe” carry legal risks. Detailed, evidence-based claims form a stronger bond with consumers.

Companies must watch new rules. Regulations in the EU—the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, and the coming Green Claims Directive—demand scientific backup for claims. Companies build a link to credibility by analyzing value chains and using product traceability.

Conclusion

Sustainable product marketing offers clear growth and pricing chances. Yet companies must build short, direct links in their messaging. By matching core product features with targeted sustainability points and proving claims with evidence, marketers connect better with buyers. This approach lets businesses unlock the power of sustainability.

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

For brands that value organic and sustainable solutions, these insights offer a roadmap. Linking clear product values with sustainability helps you engage eco-conscious consumers and build lasting trust.

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.