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

Sustainability now drives the consumer goods market. It is not a niche choice. Companies can boost growth and earn premium prices by marketing sustainable products. Research from NYU Stern’s Center for Sustainable Business and PwC gives clear steps. This guidance helps firms show sustainability as both smart and reliable.

The Business Case for Sustainable Products

Sales Growth & Market Share:
• Between 2019 and 2024, products marketed with sustainability grew by 12.3% each year. This rate is more than twice that of regular products.
• Sustainable products reached 23.8% of total sales across 36 product categories. This covers about 40% of the U.S. consumer packaged goods market.
• These findings come from 12 years of U.S. point-of-sale data by Circana, analyzed by NYU Stern CSB.

Price Premiums:
• PwC’s 2024 survey of 20,000 consumers shows shoppers pay an extra 9.7% on average for sustainable goods.
• NYU Stern CSB research finds the real premium is 26.6% above the price of regular items.
• In some cases, such as paper goods, consumers may pay more than 100% extra. Coffee, cereal, and chocolate show a premium around 50%.

Strategic Marketing Approaches for Sustainable Products

1. Understand Your Market and Customer Segments

• Many consumers favor sustainable products. Millennials, college-educated buyers, city residents, and high-income households lead the group.
• Some categories, such as dairy, show strong sustainable sales across all ages.
• Marketers must study which customer segments and product lines offer the best growth.

2. Amplify Sustainability by Linking It to Core Product Qualities

• Good marketing links sustainability with the product’s best features.
• It works like a hit song. One strong product attribute and one or two sustainability claims can boost appeal by 30 percentage points.
• Choose messages that match what customers value. For example, a skincare product may state it is “formulated with sustainable ingredients that are good for your skin.”

3. Focus on Consumer-Centric, Credible Sustainability Claims

Consumers prefer sustainability claims that are clear and direct. They value claims that: • Protect human health (e.g., no harmful ingredients).
• Help them save money.
• Support local farms and food systems.
• Benefit children and future generations.
• Preserve animal health.
• Use local or sustainable sourcing.

Claims about biodegradability, climate neutrality, traceability, or generic packaging are less convincing without extra details.

Ensuring Trust and Compliance in Sustainability Messaging

• Avoid vague terms like “clean,” “natural,” or “safe.” These words can lead to legal issues. They are especially risky for products used by children.
• Follow new international rules. For example, the EU now has the Corporate Sustainability Reporting Directive and a proposed Green Claims Directive. These rules need scientific proof for claims.
• A clear value chain and product traceability help support all claims. This effort protects a company’s future marketing.

Conclusion

Marketing sustainable products offers clear benefits. These include faster sales growth, higher prices, and a loyal customer base. Companies must mix solid product benefits with trusted sustainability claims. They must share these claims in a direct and clear way. By using advice from NYU Stern CSB and PwC, businesses can better meet customer needs and use sustainability to drive both purpose and profit.

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

Sources:
• NYU Stern Center for Sustainable Business (CSB) Research (2024-2025)
• PwC Consumer Survey on Sustainability (2024)
• Circana U.S. Consumer Packaged Goods Sales Data
• CSB & Edelman Communications Research on Sustainability Messaging

For more authoritative insights on sustainable commerce and marketing strategies, stay tuned to our blog dedicated to organic and sustainable products.

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.