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

Sustainability drives growth. It powers prices. Research shows this fact. Companies face a challenge. They must show that sustainable products matter. They must help customers and justify the cost.

Growth and Premiums: The Business Case for Sustainability

NYU Stern’s CSB and Circana share strong data. They point to clear trends.

• Sales Leap: Consumer goods that highlight sustainability grew at 12.3% per year from 2019 to 2024. This rate is over twice that of regular products.

• Market Share: By 2024, sustainable products earned nearly 24% of consumer packaged goods sales. Their spread touches 36 categories and covers 40% of the market.

• Price Premiums: A PwC survey of 20,000 consumers in 2024 found buyers willing to pay almost 10% more. CSB shows real premiums average 26.6%. Some items, like paper products, see over 100% more.

These numbers show that sustainability helps growth. It lets brands charge higher prices.

Know Your Audience: Targeting Sustainability Shoppers

CSB has clear insights on buyers. They see patterns that matter.

• Millennials and college-educated buyers lead the way. • Urban dwellers and high-income earners show strong interest.

Sustainable products drive sales in many key areas. Dairy, for example, sells well across ages. High prices often go with these products. Marketers must tailor their plans. They should know each group and each product type.

Crafting the Right Message: Blending Product and Sustainability Benefits

The pitch must be clear. It needs to build on two main ideas.

• First, show the product’s best qualities—its taste or its strong performance. • Then add one or two clear sustainability points. These points must match what buyers value.

CSB and Edelman find this mix lifts appeal by 30 points on average. For example, skincare products that claim, “made with sustainable ingredients that boost skin health,” join nature and personal benefits close together.

What Sustainability Claims Resonate?

Consumers like claims with direct help. They trust messages that promise:

• Better human health by avoiding harmful ingredients. • Money savings. • Local support for farms and food systems. • Better care for animals. • A safer future for the next generation. • Use of local or responsibly sourced materials.

Simple claims work better than complex ones. Words like “biodegradable” or “climate-neutral” alone do not hit the mark. Certifications may help, yet they stay best when the overall message is clear.

Trust and Compliance: The Need for Precise, Evidence-Based Claims

PwC warns that vague words such as “clean” or “natural” can bring legal trouble. This is true especially when the product touches children or skin. Governments tighten rules. The EU, for example, now has the Corporate Sustainability Reporting Directive and the Green Claims Directive. These laws ask for solid proof.

Companies must be ready. They should analyze their full way of adding value. They need clear, honest words. They must check rules as they change.

Conclusion

Sustainable products offer big chances. They speed up sales and let companies set higher prices. Marketing leaders must act by:

• Knowing the buyers who seek sustainability and learning about each product type. • Creating messages that mix strong product benefits with clear sustainable ties. • Providing solid proof and following the rules.

By following these steps, businesses build trust and set their brands apart. They unlock growth that lasts.

About the Authors:
Tensie Whelan is a Distinguished Professor of Practice at NYU Stern. She also founded the NYU Stern Center for Sustainable Business. David Linich is a principal at PwC US. He focuses on decarbonization and sustainable operations.

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.