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

Sustainable products appeal more to consumers. Companies face hurdles when they try to get into this green market. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC shows how businesses can reposition and market these products. They can gain growth and earn higher prices if they follow these tips.

The Business Case for Sustainable Products

• Strong Growth:
Over 12 years, US point-of-sale data in 36 categories (covering 40% of the consumer packaged goods market) shows sustainable products grew at 12.3% per year between 2019 and 2024. This growth rate is 2.3 times higher than that of regular products.

• Market Share:
By 2024, sustainable products made up nearly 24% of overall sales in the studied groups.

• Price Premiums:
A 2024 PwC survey of 20,000 consumers shows that shoppers are ready to pay 9.7% extra for products made or sourced in a sustainable way. Actual premium data shows an average of 26.6%, with some paper goods over 100% and items like coffee, cereal, and chocolate around 50%.

Key Strategies to Unlock Full Value

Understand and Target Customer Segments

Millennials, college-educated buyers, city residents, and high-income people buy more sustainable products. Some products, such as dairy, see strong sustainable sales in many age groups. Knowing which groups care most about sustainability helps focus marketing efforts.

Connect Sustainability with Core Product Qualities

Research from CSB and Edelman shows marketing messages must first stress key qualities like taste and cleanliness. Then you can add one or two simple sustainability messages. This approach can boost product appeal by about 30 percentage points. For example, skincare products do well if they link skin benefits with eco-friendly ingredients.

Promote Sustainability Claims Consumers Trust

Consumers trust clear claims that show direct benefits. They value claims that promise to: • Protect health by avoiding harmful ingredients
• Save money
• Support local farms and food systems
• Help future generations
• Care for animal health
• Source ingredients locally or sustainably

Claims that only mention scientific terms like biodegradability, climate neutrality, or traceability work less well. Certification can back claims but needs extra clear points to win consumer trust.

Best Practices for Claim Credibility and Regulatory Compliance

Use clear words. Avoid vague terms like “clean,” “natural,” or “safe,” which can lead to legal issues. This is important for items for children or products that touch the skin. Stay updated with new rules such as the EU’s Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, and the possible Green Claims Directive. Build strong systems to check the entire value chain. Use scientific evidence and international standards to prove claims.

Conclusion

Marketing sustainable products takes clear strategy and honest messages. It means matching messages with what buyers value and following rules. Companies that use these ideas can see strong growth, get better prices, and build trust with shoppers who care about sustainability.

Authors:

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

Sources:

• NYU Stern Center for Sustainable Business research using Circana sales data (2012–2024)
• PwC 2024 global consumer survey
• Joint CSB and Edelman consumer appeal studies
• EU sustainability rules and updates as of 2025

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.