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

Sustainable products gain steady traction with consumers. Companies struggle to unlock each product’s full market power. NYU Stern’s Center for Sustainable Business and PwC research offer strategic ways to market sustainability. Their work builds consumer trust and guides growth.

The Business Case for Sustainable Products

Consumers boost sustainable goods. U.S. point‐of‐sale data from Circana covers 12 years, 36 product types, and 40% of the market. Data shows sustainable products grew nearly 12.3% each year from 2019 to 2024. Growth here is more than twice that of traditional products. By 2024, sustainable goods made up 23.8% of sales.

Price premiums also support sustainable products. A PwC consumer survey in 2024 asked 20,000 people if they would pay more. On average, responses suggested paying 9.7% extra for sustainable goods. CSB’s market data shows an average premium of 26.6% for these products. In paper products, premiums top 100%, while coffee, cereal, and chocolate often reach around 50%.

Targeting the Right Consumers and Categories

Some groups favor sustainable products. Millennials, college-educated shoppers, urban residents, and high-income earners lead this trend. CSB research notes strong interest in categories such as dairy. Broad age groups show high engagement here. Firms must focus closely on these groups and categories to make a market impact.

Crafting Compelling Sustainability Messages

Marketing sustainable products works much like a hit song. First, highlight a clear product feature—say, great taste in chocolate or lasting cleanliness in soap. Then, pair it with one or two strong sustainability claims. This method lifts the product’s appeal by 30 percentage points on average. The connection between claims and product traits makes the message clear to all customer types.

Practical Messaging Tips:

• Tie sustainability benefits directly to product qualities (for example, state that a skincare item is "formulated with sustainable ingredients that help your skin").
• Limit the number of sustainability claims to the few that have the strongest effect.

Prioritizing Credible and Valued Claims

Not every claim joins equally well with consumer trust. People prefer messages that defend human health by noting the absence of harmful ingredients. They like claims that promise cost savings, support local farms and food systems, help children and future generations, preserve animal health, and use local or sustainable sources.
Some claims, such as stating biodegradability or packaging contents, work only when there is strong evidence. Sustainability certifications back regulatory needs but must team up with clear consumer messages.

Ensuring Precision and Evidence in Claims

PwC warns that vague words like “clean,” “natural,” or “safe” invite legal risk. This risk grows when the product touches children or skin. Clear claims need robust evidence and transparency. Companies should track changes in European rules. Key rules include the Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and EU Green Claims Directive. Firms must also boost value chain analysis and traceability to uphold trust and meet rules.

Conclusion

Combining a solid business case, smart consumer targeting, genuine messaging, and strong evidence makes sustainable product marketing work. NYU Stern CSB and PwC insights offer a clear roadmap. Marketers and business leaders can tap growth and price premium benefits in the expanding sustainable market.

Author Profiles:

• Tensie Whelan: Distinguished Professor of Practice at NYU Stern; Founding Director of NYU Stern Center for Sustainable Business.
• David Linich: Principal at PwC US; Expert in decarbonization and sustainable operations.

This summary is based on findings from research published May 21, 2025, by NYU Stern’s Center for Sustainable Business and PwC.

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.