# Consumer Demand ![SMSI intro](/sites/default/files/styles/866w/public/2023-03/Intro%20component%20SMSI.png?h=77b85495&itok=gxxk0p8B) ## Consumer Demand: Sustainable Purchasing Research CSB conducts research into sustainability as a driver of consumer purchasing and brand appeal --- ## Consumer demand drives business strategy and product development. But do consumers actually buy sustainable products and are they willing to pay a premium for them? Which messages resonate most? CSB has explored more than a decade of empirical research that moves beyond consumers' stated preferences to examine actual purchasing behavior and messaging effectiveness. #### CSB's [**Sustainable Market Share Index**™](https://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/centers-of-research/center-sustainable-business/research/csb-sustainable-market-share-index) (SMSI) tracks annual purchasing data donated by Circana across 36 consumer packaged goods (CPG) categories, comparing the sales of products marketed as sustainable versus conventional alternatives. The findings are clear: sustainable products have grown market share year over year, at a significant price premium, despite recent inflationary pressures, and political polarization. Key insights: - Branded products marketed as sustainable now hold a 25.4% market share, up +1.6 percentage points versus the prior year despite continued high inflation, strong store brand performance, and market and economic uncertainty. - Sustainability marketed products were responsible for 44.9% of growth in CPG from 2013 - 2025. - Products marketed as sustainable grew 4.9X faster than products not marketed as sustainable and achieved a 5-YR CAGR of 10.9% vs 2.2% for its conventional counterparts - Products marketed as sustainable enjoy an average of 26.6% price premium over conventional counterparts. - Germany and U.K. sustainable market share, at 42% and 36.8% respectively, exceeds that of the U.S. - All cohorts are increasingly purchasing sustainability marketed products. #### In addition to tracking actual purchases annually, we have researched which specific communications move consumers. Together with Edelman, we have published [**Effective Sustainability Communications**](https://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/centers-of-research/center-sustainable-business/research/research-initiatives/effective-sustainability-communications) reports on which environmental and social messages resonate most with consumers—both independently and alongside product category claims. The research, undertaken in partnership with iconic consumer-facing brands, reveals which sustainability messages amplify brand appeal for consumers across demographics. Key insights: - **Category claims are paramount.** However, certain social and environmental sustainability claims appeared among top performing messages overall and significantly amplify brand appeal when laddered upon the core attribute claim. - **Universal appeal.** Certain sustainability messages were embraced by all demographics including political party, age, gender, and urbanicity. - **My health, my wealth, my personal world.** Top environmental messages revolved around human health benefits, attributes that save money, and the consumers' local community. - **Social sustainability ABCs.** Top social sustainability messages included themes related to Access, Basic needs, Crisis response, Disability and veteran communities, and Economic status. Overall, our research finds that sustainability delivers measurable competitive advantages when backed by authentic action— providing consumer appeal, premiums, and market share growth. Discover more by exploring our research findings below. ![Randi SMSI 2026](/sites/default/files/styles/640w_x_535h/public/2026-04/26-0408-189.jpg.webp?itok=g83GS5TJ) ## Sustainable Market Share Index™ The Sustainable Market Share Index**™** is an annual analysis of the latest purchasing data for consumer packaged good (CPG) products marketed as sustainable, in partnership with Circana. [Explore the 2025 Report](https://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/centers-of-research/center-sustainable-business/research/csb-sustainable-market-share-index) --- ![Effective Sustainability Communications](/sites/default/files/styles/640w_x_535h/public/2025-12/untitled_design_47.png.webp?itok=JGajWGgV) ## Effective Sustainability Communications CSB, with support from Edelman, developed a cutting-edge research initiative to identify which environmental and social sustainability claims, when authentic, best resonate with consumers. CSB and Edelman partnered with iconic consumer brands across apparel, food and beverage, nutrition and wellness, consumer services, and technology to test more than 30 marketing claims for each brand. [Explore the Research](https://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/centers-of-research/center-sustainable-business/research/research-initiatives/effective-sustainability-communications) --- ## Media Highlights Read about CSB's consumer insights in featured news articles [ ![HBR](/sites/default/files/styles/866w_x_540h/public/2023-05/HBR.png.webp?itok=wQ_TOCs3) ](https://hbr.org/2025/10/what-consumers-really-want-brands-to-do-about-social-issues?ab=HP-hero-latest-1) [## Harvard Business Review: What Consumers Really Want Brands to Do About Social Issues ](https://hbr.org/2025/10/what-consumers-really-want-brands-to-do-about-social-issues?ab=HP-hero-latest-1) [Read more](https://hbr.org/2025/10/what-consumers-really-want-brands-to-do-about-social-issues?ab=HP-hero-latest-1) [ ![Journal of marketing](/sites/default/files/styles/866w_x_540h/public/2025-12/5_year_cagr_2.png.webp?itok=MEAv7NIP) ](https://journals.sagepub.com/doi/abs/10.1177/00222429251343823?forwardService=showFullText&tokenAccess=DXNIIKANZSBZ9MX3EDA6&tokenDomain=eprints) [## Journal of Marketing: Sustainable Product Profit Potential and Availability ](https://journals.sagepub.com/doi/abs/10.1177/00222429251343823?forwardService=showFullText&tokenAccess=DXNIIKANZSBZ9MX3EDA6&tokenDomain=eprints) [Read](https://journals.sagepub.com/doi/abs/10.1177/00222429251343823?forwardService=showFullText&tokenAccess=DXNIIKANZSBZ9MX3EDA6&tokenDomain=eprints) [ ![Fortune logo](/sites/default/files/styles/866w_x_540h/public/2024-04/2.png.webp?itok=PKPCmC3E) ](https://fortune.com/2023/10/17/politicians-war-sustainability-new-research-us-consumers-gen-z-boomers-opposite-directions-retail-whelan-kronthal-sacco/) [## Fortune: Some politicians are waging a war on sustainability. New research shows U.S. consumers of all persuasions, from Gen Zers to boomers, are going in the opposite direction ](https://fortune.com/2023/10/17/politicians-war-sustainability-new-research-us-consumers-gen-z-boomers-opposite-directions-retail-whelan-kronthal-sacco/) [Read](https://fortune.com/2023/10/17/politicians-war-sustainability-new-research-us-consumers-gen-z-boomers-opposite-directions-retail-whelan-kronthal-sacco/) ## Questions about the research? ### Randi Kronthal-Sacco [ rks8@stern.nyu.edu ](mailto:rks8@stern.nyu.edu) ****Randi Kronthal-Sacco**** (Stern ‘83) is a Senior Scholar at the NYU Stern Center for Sustainable Business and Adjunct Professor.