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 is 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.
Related insights
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 U.S. 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 covering 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 conducted by PwC in 2024, respondents said they are willing to pay 9.7% above the 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.
How can marketing leaders realize the full value of product sustainability? By clarifying the business case, amplifying the appeal of sustainable products, and elevating credible claims.
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 large shares of sales in some important categories, such as dairy, across all age groups.
In many of those categories, sustainability-marketed products tend to be priced at sizable premiums, as noted above. Knowing which customer groups are most likely 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 increases appeal by 30 percentage points and elevates the overall appeal of the product. This combination works across all customer groups.
Take action: Connect sustainability with a product’s core qualities
Since a good sustainability pitch has room for only a few claims at most, it’s critical to select messages for maximum impact. Research by CSB and Edelman shows that sustainability messages are most appealing when they relate to attributes that matter in the product’s category.
In skincare, for example, the message “formulated with sustainable ingredients that are good for your skin” ties the sustainability attribute directly 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, but only some strongly appeal to shoppers. Survey respondents in CSB and Edelman research assigned high appeal to claims related to six product qualities that highlight consumer benefits:
- Protecting human health
- Saving money
- Benefiting local farms and food systems
- Supporting children and future generations
- Preserving the health of animals
- Originating from local or sustainable sources
Much less effective were claims about scientific properties (such as biodegradability or climate neutrality), traceability, packaging (except all-recycled content claims), and sustainability certifications. Certification seals do help validate claims for regulators and some consumers, but additional messaging is still needed to boost 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 most frequently target products used by children, ingested, or applied to the skin, as these can pose health risks.
Companies should also track evolving regulations on sustainability claims. European authorities now require monitoring of environmental and social issues in value chains under policies such as the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive, though these may be modified under the EU Omnibus legislation introduced in February 2025.
If adopted, the EU Green Claims Directive would require companies to substantiate environmental claims using scientific evidence, relevant international standards, and supporting material. These pressures mean companies will benefit from building strong capabilities in value chain analysis and traceability.
Author profiles
Tensie Whelan is Distinguished Professor of Practice at NYU Stern and Founding Director of the NYU Stern Center for Sustainable Business.
David Linich is a leading practitioner in decarbonization and sustainable operations and is a principal with PwC US.
