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

Consumers care about sustainability. Many companies, however, find it hard to use its full market power. NYU Stern’s Center for Sustainable Business (CSB) and PwC offer clear, data-led ideas. They show how to position sustainable products, win trust, and boost sales.

The Business Case for Sustainable Products

Sustainability boosts both sales and prices. Data show that sustainable consumer goods grow faster and earn a price premium:

• Sales Growth: Between 2019 and 2024, sustainable items grew by 12.3% each year. They now make up 23.8% of all U.S. consumer packaged goods (CPG) sales.
• Price Premium: In PwC’s 2024 study of 20,000 consumers, people said they would pay about 9.7% more for goods made or sourced sustainably. Actual sales data show an average price premium of 26.6%. Some items, like paper, pass the 100% mark. Coffee, cereal, and chocolate hold around 50%.

Target Customer Groups for Sustainable Products

Some groups buy sustainable items more often:

• Millennials
• College-educated buyers
• Urban residents
• High-income shoppers

Even dairy products show strong sustainable sales across age groups. Knowing these groups helps companies target their messages well.

Crafting Effective Sustainability Marketing Messages

Good marketing for sustainable products works by linking core features and eco claims. First, show the product’s main benefit (like taste or texture). Then add one or two relevant eco claims. When you do this, product appeal may rise by nearly 30 percentage points. For example, skin care products can connect sustainable ingredients with skin health.

This close linking of ideas improves brand trust and reaches more customers.

Sustainability Claims That Connect and Build Trust

Research ranks eco claims by how well they work. The most trusted claims highlight benefits that matter:

• Help human health by avoiding harmful substances
• Save money for consumers
• Support local farms and food systems
• Protect animal health
• Benefit children and future generations
• Source from local or truly sustainable origins

On the other hand, claims on biodegradability, climate neutrality, traceability, or certification seals seem less persuasive. Still, certifications can help meet rules and add some trust.

Recommendations for Marketers

Marketers should focus on a few clear steps to boost sustainable product sales:

1. Clarify the Business Case:

   • Use consumer data to choose the best product categories and customer groups.
   • Show clear, tangible value to explain why higher prices make sense.

2. Amplify Product Appeal:

   • Mix strong product benefits with one or two eco claims.
   • Keep messages simple to avoid weakening their effect.

3. Elevate Credible Claims:

   • Rely on precise, evidence-backed eco statements.
   • Watch new rules, especially in markets like the EU with directives such as the Corporate Sustainability Reporting Directive and the Green Claims Directive.
   • Build a traceable value chain to back up sustainability claims and avoid legal issues.

Conclusion

To market sustainable products, use clear data, link ideas closely, and back up claims with facts. This strategy meets consumer needs and builds trust. In this way, businesses unlock strong growth for sustainable goods.

Authors:
Tensie Whelan, Distinguished Professor of Practice, NYU Stern 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 (CSB) – Analysis of 12 years of US point-of-sale data
• PwC 2024 consumer survey on willingness to pay for sustainable products
• Joint research by CSB and Edelman on effective sustainability messaging

This research gives clear ideas to boost sustainable product marketing and build long-lasting customer 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.