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

Sustainable products are popular and many consumers choose eco-friendly options. Companies that sell consumer products face challenges when marketing these items. NYU Stern’s Center for Sustainable Business and PwC give clear guidance. Their research shows that using simple, connected words in strategic messages and solid claims can tap the full market potential.

The Business Case for Sustainable Products

Strong Sales Growth and Price Premiums

• Between 2019 and 2024, sustainability-marketed consumer packaged goods grew at an annual rate of 12.3%.
  – This rate is more than double that of conventional products.
  – Sustainable products made up 23.8% of total sales in 2024, according to 12 years of US point-of-sale data from Circana.

• Consumers are willing to pay more for these products.
  – A PwC survey in 2024 of 20,000 consumers shows they accept price increases of about 9.7% for sustainably produced goods.
  – CSB research shows an average premium of 26.6%, with paper products sometimes costing over 100% more.
  – Premiums of around 50% were noted for coffee, cereal, and chocolate.

Strategies to Maximize Sustainable Product Appeal

1. Recognize Target Customer Segments

The evidence shows that some groups favor sustainable products.
  – Millennials, college-educated shoppers, urban residents, and high-income earners tend to choose eco-friendly options.
  – Even basic goods like dairy attract consumers who care about sustainability.

2. Connect Sustainability with Core Product Qualities

Marketing can be like creating a great song.
  – Focus on a primary quality, such as taste or effectiveness.
  – Add one or two clear sustainability claims.
  – This mix can boost product appeal by about 30 percentage points.
  – For example, in skincare, linking “sustainable ingredients” with “good for your skin” works well.

3. Prioritize Credible and Impactful Sustainability Claims

Consumers trust clear and direct benefits.
  – Benefits include protection from harmful ingredients, cost savings, support for local farms, the well-being of future generations, animal welfare, and local or sustainable sourcing.

Some claims are less convincing, such as:
  – Abstract scientific terms like biodegradability or climate neutrality.
  – Traceability and generic packaging claims (unless the package is all-recycled).
  – Sustainability certifications help, but extra messaging is needed to enhance appeal.

Ensuring Trust Through Precision and Evidence

• Vague claims such as “clean,” “natural,” or “safe” risk legal issues.
  – This is especially true for products used by children or applied to the skin.

• Firms must keep up with evolving rules.
  – The EU’s Corporate Sustainability Reporting Directive requires clear proof of claims.
  – The upcoming EU Green Claims Directive will ask for scientific evidence and standards for any environmental claim.

• Building strong value chain analysis and traceability helps prove claims and keep trust.

Conclusion

Consumer demand for sustainable products grows.
  – Brands must market these options in a clear, truthful, and strategic way.

Research from NYU Stern CSB and PwC shows that companies can:   • Prove real business benefits from sustainability.
  • Create targeted, strong messages that tie sustainability with core product qualities.
  • Follow new regulatory rules to maintain consumer trust.

With these ideas, businesses can grow in the sustainable product market and build lasting ties with eco-conscious customers.

Authors:

• Tensie Whelan, Distinguished Professor at NYU Stern and Founding Director of CSB
• David Linich, Sustainability and Decarbonization Principal at PwC US

Source: Research collaboration by NYU Stern Center for Sustainable Business and PwC, May 21, 2025.

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