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

Sustainability matters to consumers. Many companies struggle to market sustainable goods. They miss growth and better prices. Research from NYU Stern’s Center for Sustainable Business and PwC shows simple ways to connect with customers. The work uses clear, honest sustainability words.

The Business Case for Sustainable Products

• Strong Sales Growth: We studied 12 years of U.S. point-of-sale data from 36 consumer packaged goods categories. Sustainability-marketed products grew at 12.3% each year from 2019 to 2024. This pace is more than double that of conventional products.
• Market Share: By 2024, sustainable products made up nearly 24% of all CPG sales.
• Price Premiums: A PwC 2024 survey of 20,000 consumers found that buyers would pay an extra 9.7% for sustainable goods. Research from CSB shows real premiums average 26.6%. In some categories like paper products, the premium is above 100%, while coffee, cereal, and chocolate have about a 50% premium.

Maximizing Impact: Marketing Strategies That Work

1. Understand Your Customer Segments

Millennials, college-educated buyers, urban residents, and high-income groups choose sustainability-marketed products. Some categories, like dairy, perform well with all ages. It is key to know which customer groups value sustainability in your market.

2. Blend Sustainability with Core Product Benefits

Research from CSB and Edelman shows the best messages join core product traits with sustainability. For example, a chocolate bar that shows its rich taste along with two sustainability claims boosts appeal by 30 percentage points. Use sustainability messages that match what customers value. For skincare, a message might say, “Formulated with sustainable ingredients that are good for your skin.”

3. Focus on Consumer-Valued and Trusted Claims

The strongest sustainability claims connect to key benefits. They address human health (free of harmful ingredients), saving money, and support for local farms. They also help children, future generations, and animal welfare. Claims about local or sustainable sources work well too. Claims focused only on biodegradability, packaging details (unless all recycled), generic certifications, or traceability do not work as well. Certification seals help check claims but need extra support to connect with customers.

4. Ensure Precision and Evidence in Claims

Ambiguous words like “clean,” “natural,” or “safe” can lead to legal issues. This risk is high for products for children or skin care. Companies must keep up with new rules. For instance, watch the EU’s Corporate Sustainability Reporting and Due Diligence Directives, and the proposed EU Green Claims Directive that asks for scientific support. Building strong traceability and value chain analysis is key to back up sustainability claims.

Conclusion

Sustainable products offer growth and the chance for premium pricing. Success depends on good quality, clear sustainable messaging, and targeting the right customers with real, evidence-backed claims. As global rules tighten, investing in transparency and traceability is vital to gain trust and grow in the sustainability market.

Author Profiles:

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

For more insights on sustainable business and marketing strategy, visit the NYU Stern Center for Sustainable Business and PwC’s sustainability practice.

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.