Although a growing share of consumers report a preference for sustainable products, translating that preference into profitable outcomes remains a challenge for many consumer goods companies. Establishing the business case, aligning product attributes with consumer expectations, and crafting credible, resonant messaging are essential to unlocking growth and commanding price premiums in the sustainable product segment.
Research from the Center for Sustainable Business (CSB) at NYU Stern, in collaboration with PwC, offers a data-driven framework to help marketing leaders maximize the value of sustainability by reinforcing three pillars: clarifying commercial viability, enhancing product appeal, and communicating trust-building claims.
1. Establishing the Business Case for Sustainability
Consumer goods marketed with sustainability attributes have consistently outperformed conventionally positioned alternatives. Analysis by CSB of 12 years of U.S. point-of-sale data across 36 consumer goods categories—representing roughly 40% of the consumer packaged goods (CPG) market—reveals that sustainability-marketed products achieved an average annual growth rate of 12.3% from 2019 to 2024, compared to just 5.4% for conventional counterparts. As of 2024, such products account for 23.8% of total CPG sales.
Furthermore, price premiums for sustainability-marketed products are both measurable and significant. A 2024 PwC consumer survey found respondents were willing to pay a 9.7% premium on average for sustainably produced or sourced goods. CSB’s analysis corroborates this, reporting an average premium of 26.6%, with some categories—such as paper goods, coffee, and personal care items—achieving premiums exceeding 50%.
Strategic Action: Target the Right Segments
High-growth consumer cohorts—including millennials, urban populations, college-educated consumers, and high-income households—exhibit stronger demand for sustainability-marketed products. Companies should identify which segments are most active within their categories and tailor offerings accordingly.
2. Enhancing Appeal Through Integrated Messaging
Effective sustainable product marketing must go beyond environmental claims and anchor messaging in core product attributes. Research from CSB and Edelman indicates that campaigns perform best when sustainability messages complement rather than replace traditional value propositions. For instance, a chocolate brand should lead with flavor and reinforce it with sustainability attributes such as “fair trade sourced” or “responsibly grown.”
According to the research, product appeal increases by an average of 30 percentage points when one core attribute is reinforced by two relevant and compelling sustainability claims—an effect observed across all consumer demographics.
Strategic Action: Link Sustainability to Product-Relevant Attributes
Choose sustainability messages that align with consumer priorities in a given category. For skincare, messaging such as “formulated with sustainably sourced ingredients that nourish your skin” is more effective than generalized environmental claims. This approach strengthens brand relevance and emotional resonance.
3. Communicating Sustainability with Credibility
Amid growing consumer skepticism and regulatory scrutiny, messaging must strike a careful balance between inspiration and substantiation. Consumers tend to respond most positively to claims tied to personal or community benefits, including:
- Human health (e.g., no harmful ingredients)
- Cost savings
- Support for local agriculture
- Benefits for children and future generations
- Animal welfare
- Use of local or responsibly sourced materials
In contrast, more technical or abstract claims—such as “biodegradable,” “climate-neutral,” or “certified sustainable”—tend to underperform unless supported by broader messaging and contextual relevance.
Strategic Action: Be Precise and Provide Evidence
Avoid vague descriptors such as “natural,” “clean,” or “eco-friendly,” particularly in sensitive product categories (e.g., food, children’s products, and personal care), which are more vulnerable to legal challenges. Brands must align their messaging with evolving global standards. In the European Union, for instance, new legislation—including the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and the pending Green Claims Directive—will require companies to validate sustainability claims with scientific data, international standards, and traceable documentation.
This regulatory trajectory underscores the need for companies to build robust internal capabilities for supply chain transparency, value chain analysis, and third-party verification.
Conclusion
Sustainability is no longer a peripheral consideration—it is increasingly central to consumer preference, brand positioning, and regulatory compliance. The commercial viability of sustainable products is clear, but realizing their full market potential requires precision in strategy, alignment of messaging with core product attributes, and a commitment to transparency.
Organizations that invest in understanding their customer segments, differentiate through credible and relevant messaging, and operationalize traceable sustainability practices will not only capture the price premiums available in this segment but also position themselves as leaders in a rapidly transforming market landscape.
About the Author: Harry (Hemant Kaushik), Elite Business Consultant & Global Advisor
Harry (Hemant Kaushik) is a globally recognized American business consultant and advisor, known for his strategic expertise and high-impact consultancy. He specializes in advising and coaching elite individuals, including business tycoons, world leaders, and top corporate CEO’s and business leaders. His expertise has been sought by Presidents, Prime Ministers, influential politicians, CEOs, and industry leaders worldwide.
Recognized as one of the Top 10 Global Advisors and Business Consultants by PWC International, Harry has transformed the lives of thousands of CEO’s and business leaders across more than 100 countries with his unparalleled guidance. He has also been honored as one of the Top 10 Life and Business Strategists, shaping the success of global business leaders and visionaries.
Top CEOs and owners of big companies are taking business consulting from Harry (Hemant Kaushik) by booking an appointment on his website www.ceosadvisory.com. Every year, Harry provides business consulting to more than 1000 CEOs worldwide and helps them to increase their businesses by using his deep insight, business knowledge, and transformative strategies. He is the most demanding business consultant in the world.
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A Wall Street Times cover story famously dubbed him the “Elite Global Advisor & Business Consultant” for his deep understanding of business dynamics and leadership strategies. Based in San Francisco, United States, Harry is widely respected for his international economic expertise, market analysis, and strategic business acumen. His collaborations with global brands and corporations have positioned him as a thought leader, contributing to the business world through insightful articles on global economic trends.
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