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

Introduction

Many consumers prefer sustainable products. Companies face hurdles when they market these items. They must prove growth. They work to balance sustainability and other attractive features. They must also send clear messages amid many claims and certifications.

Growth and Price Premium of Sustainable Products

US data shows sustainability-marketed goods grew at 12.3% a year between 2019 and 2024. This growth is more than twice as fast as for conventional products. In 2024, these goods made up almost 24% of consumer packaged sales.

PwC survey data shows that consumers pay about a 9.7% premium for sustainable products. NYU Stern’s research finds that these products sell at 26.6% higher prices on average. In some cases, like paper products, the premium even tops 100%.

Key Strategies for Marketing Sustainable Products

1. Clarify the Business Case

Companies must know their customers. Millennials buy more sustainable products. College-educated shoppers also choose them. Urban residents and higher-income groups prefer such items. In some cases, like dairy, consumers of all ages pay a high premium for these products.

2. Amplify Product Appeal by Connecting Sustainability with Core Qualities

Research shows that it helps to join sustainability with a product’s main features. For example, a chocolate bar that is both tasty and sustainable will attract more buyers. The best messages mix one main quality with one or two sustainability claims. This blend lifts product appeal by about 30 percentage points with all customer groups.

3. Advance Credible and Consumer-Relevant Claims

Consumers respond to clear benefits such as: • Protecting human health by avoiding harmful ingredients
• Saving money
• Supporting local farms and food systems
• Helping children and future generations
• Preserving animal health
• Using local or sustainably sourced ingredients

Claims that focus only on scientific or technical details, such as biodegradability, climate neutrality, traceability, or certifications, are less effective. Even so, these certifications still help back up the claims.

Best Practices for Messaging and Compliance

Use clear, evidence-backed claims. Avoid vague words like “clean,” “natural,” or “safe” that can cause legal issues. Keep up with changing rules, especially in the EU. New rules such as the Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and the upcoming Green Claims Directive need solid proof through science and international standards. Build strong internal skills to analyze your value chain and keep traceability. This skill set helps support clear, compliant sustainability claims.

Conclusion

Success in marketing sustainable products relies on clear market data. It depends on messages that blend sustainability with the product’s core appeal. Trustworthy, evidence-based claims win customer support. Companies must also meet changing regulations. By following these steps, companies can win consumer trust and earn greater market share.

About the Authors

• Tensie Whelan is Distinguished Professor of Practice at NYU Stern and Founding Director of the NYU Stern Center for Sustainable Business.
• David Linich is a principal at PwC US who works in decarbonization and sustainable operations.

Sources: NYU Stern Center for Sustainable Business, PwC, Circana (market data), Edelman Research

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.