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

Consumers want sustainable products. Companies face hard challenges to market these products in a way that grows profit and trust. NYU Stern’s Center for Sustainable Business and PwC studied this need. Their work gives clear steps. These ideas help marketing leaders link with buyers who care about sustainability, yet they keep trust and appeal close.

Growth and Price Premiums for Sustainability-Marketed Products

• Rapid Sales Growth:
  Researchers at CSB looked at 12 years of US point-of-sale data. They studied 36 consumer packaged goods categories (about 40% of the market, excluding alcohol and tobacco). They saw that from 2019 to 2024, sales for sustainable products grew 12.3% each year. This growth is more than twice that of normal products.

• Market Share:
  In 2024, sustainable goods made up 23.8% of total sales in these categories.

• Price Premiums:
  A PwC survey of 20,000 consumers in 2024 shows that buyers pay 9.7% more, on average, for products made sustainably. In some cases, the extra cost is much higher. In one study, CSB found an average premium of 26.6%. Some paper products even show a premium over 100%. Items like coffee, cereal, and chocolate have a premium near 50%.

Unlocking Value: Marketing Recommendations

1. Understand Customer Segments

• Stronger Buyers:
  Millennials, college-educated buyers, urban residents, and those with high incomes buy more sustainable products.

• Category Relevance:
  In many categories (like dairy), sustainable items hold a large share of sales for every age group.

• Action:
  Find the customer groups that pick sustainable products in your market. Then, tailor your marketing and product ideas to them.

2. Amplify Product Appeal by Linking Sustainability to Core Attributes

• Core Value Focus:
  Consumers pay attention to a product’s main features—its taste, strength, and ease of use—before thinking of sustainability.

• Combined Messaging:
  When you present 1-2 sustainability points alongside a clear core benefit, appeal can jump by 30 percentage points.

• Example:
  Skincare products that say, “formulated with sustainable ingredients that are good for your skin”, make a strong link. They show that sustainability meets the key needs of the buyer.

• Action:
  Choose sustainability messages that work well with your main benefits. Let them enhance each other.

3. Emphasize Consumer-Centric and Trustworthy Claims

• High-Impact Claims:
  Consumers respond best to claims that promise:
  • Better health (free from harmful ingredients)
  • Cost savings
  • Support for local farms and food systems
  • Benefits for children and future generations
  • Better animal health
  • Local or sustainable sourcing

• Lower-Impact Claims:
  Claims focused only on scientific terms (like biodegradable), traceability, common certifications, or generic packaging work less well. An exception is packaging that is all recycled.

• Certification Seals:
  These seals help show that claims meet legal rules. However, they are not enough by themselves to win buyers.

• Action:
  Use clear claims that back up your facts. Do not use vague words like “clean” or “natural.” Such words can lead to legal issues, especially for kids’ products or skincare.

Navigating Regulatory Pressures

• Evolving Legislation:
  Companies must watch new rules like the EU’s Corporate Sustainability Reporting Directive, Due Diligence Directive, and the proposed Green Claims Directive.

• Substantiation Requirements:
  These rules need scientific evidence and must follow international standards for environmental claims.

• Business Implication:
  It is important to build strong skills in value chain analysis and traceability. This builds a solid case for trustworthy, compliant marketing.

Conclusion

Sustainable products show strong growth and can command price premiums. Winning in this space means linking sustainability with a product’s main benefits. Marketing should resonate with clear, buyer-focused claims that rely on solid evidence. As rules tighten, companies that can prove and communicate their sustainability claims will stand out and succeed.

Authors:
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

For businesses that want to market sustainably, these research-backed insights from NYU Stern and PwC provide a clear path. Use them to engage consumers, build growth, and foster 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.