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
ten
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.
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
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.
Author
profiles:
-
Tensie
Whelan
is
Distinguished
Professor
of
Practice
at
NYU
Stern
and
Founding
Director
of
NYU
Stern
Center
for
Sustainable
Business. -
David
Linich
is
a
leading
practitioner
in
decarbonization
and
sustainable
operations.
He
is
a
principal
with
PwC
US.
