A better way to market sustainable products

Plenty of shoppers say they prefer sustainable products over ordinary ones. Yet for consumer product companies, tapping into this green demand can prove tricky. One challenge: establishing that sustainable products do offer the growth potential and price premiums that justify investing in their development. Difficulty can also arise when it comes to balancing a product’s sustainability attributes against other features that customers seek. Then there’s the matter of putting forward messages that customers will trust amid a bewildering assortment of competing claims, labels, and certification seals.

The good news for business leaders is that research and experience point toward sound approaches to the delivery and positioning of sustainable products. Working in tandem, PwC and the Center for Sustainable Business (CSB) at NYU’s Stern School have brought together practical insights to help marketing leaders realize the full value of product sustainability: by clarifying the business case, amplifying the appeal of sustainable products, and elevating sustainability claims that customers find credible.

Making the case for product sustainability. The trend is clear: consumer products marketed on their sustainability features have registered healthy sales increases for several years running. Based on US point-of-sale data provided by Circana, a market research company, NYU Stern CSB researchers analyzed 12 years of purchases in 36 categories of consumer goods that cover about 40% of the consumer packaged goods (CPG) market (excluding alcohol and tobacco). They found that sales of sustainability-marketed items grew nearly 12.3% per year from 2019 to 2024—2.3 times as fast as conventional items. That growth rate pushed sustainability-marketed items to a 23.8% share of overall sales in 2024. (Note: All estimates and analysis in this paper based on Circana data are by CSB and not by Circana [formerly Information Resources Inc.].)

What’s more, various studies point to a meaningful price premium for sustainable goods. In a survey of some 20,000 consumers by PwC in 2024, respondents said they’re willing to pay 9.7% above average price for sustainably produced or sourced goods. CSB research indicates that this willingness is real: a 2024 study found that sustainability-marketed products commanded an average price premium of 26.6% over conventionally marketed products. That premium exceeded 100% for some paper products and hovered around 50% for categories such as coffee, cereal, and chocolate.

Take action: Recognize the reach of product categories. Certain customer groups—millennials, college-educated shoppers, city dwellers, and high-income earners—tend to purchase more sustainability-marketed products overall, according to CSB research. It’s also worth noting that sustainability-marketed products account for big shares of sales in some important categories, such as dairy, across all age groups. And sustainability-marketed products in many of those categories tend to be priced at sizable premiums, as noted above. Knowing which customer groups are most apt to purchase sustainable products in your company’s categories is a crucial step.

Amplifying the appeal of sustainable products. Crafting a successful marketing pitch for a sustainable product has something in common with producing a chart-topping song. Just as music producers record takes and blend instruments until a tune sounds right, marketers must find a harmonious mix of messages that shoppers will find pleasing. Research by CSB and Edelman, a communications firm, highlights how to get the mix right. Effective pitches are centered on a core attribute: the chocolate bar tastes rich and delicious; the soap leaves you smelling clean. Layering one or (even better) two sustainability messages onto the core attribute strengthens the brand positioning and performs better than communicating two core claims. On average, a core attribute claim with two effective sustainability claims drives increased appeal by 30 percentage points and elevates the overall appeal of the product. It’s a combination that works across all customer groups.

Take action: Connect sustainability with a product’s core qualities. Since a good sustainability pitch has room for a few claims at most, it’s critical to select messages for maximum impact. The research by CSB and Edelman shows that sustainability messages offer the most appeal when they relate to attributes that matter for the product’s category. In skincare, for example, the illustrative message “formulated with sustainable ingredients that are good for your skin” ties the sustainability attribute to the product attribute that is foremost in customers’ minds.

Advancing claims that consumers value and trust. Companies put forward many sustainability messages about their products. Only some of those messages appeal strongly to shoppers. Those surveyed by CSB and Edelman assigned high levels of appeal to claims related to six product qualities that highlight benefits to consumers: protecting human health (because the product contains no harmful ingredients), saving money, benefiting local farms and food systems, supporting children and  future generations, preserving the health of animals, and originating from local or sustainable sources. Much less effective: claims about a product’s scientific properties (such as whether it’s biodegradable or climate-neutral), traceability, packaging (except for claims about all-recycled content), and sustainability certifications. (Certification seals do help validate sustainability claims for regulators and for certain consumers, though additional messaging is still needed to boost products’ appeal.)

Take action: Be precise and bring evidence. PwC has found that ambiguous or generic claims, such as clean, natural, or safe, are especially likely to be challenged in court. Lawsuits happen most frequently over products that are used by children, ingested, or applied to the skin, for such products can pose health risks. Companies should also track evolving regulations on sustainability claims. European authorities require monitoring of environmental and social issues in value chains under policies like the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive (though these policies are expected to be modified under the EU Omnibus legislation that was introduced in February 2025). And the EU Green Claims Directive, if adopted, would oblige companies to substantiate any explicit environmental claims using scientific evidence, relevant international standards, and other supporting material. All these pressures mean that companies making sustainable product claims will benefit from building strong capabilities for value chain analysis and traceability.