Surveys and spending data alike indicate that many consumers do value sustainability—and, in some categories, are willing to pay a premium. However, that willingness is highly variable, depending on the product, price point, and the type of benefit offered. Many executives, especially in the consumer-packaged-goods (CPG) sector, find that sustainable products still struggle to capture meaningful market share.
The gap between what consumers say about sustainability and what they actually buy is typically described as an “intent versus action” gap, but, in my opinion, that framing oversimplifies the problem. As I see it, sustainability on its own is rarely a strong enough driver of purchase behavior to overcome entrenched habits, price sensitivity, and performance expectations. In other words, sustainability is competing against a broader set of decision criteria, and most of the time it’s losing.
Sustainable products face a classic catch-22: reducing production costs requires scale, yet building that scale is difficult when high costs force a price premium for consumers. Many categories remain trapped in this cycle—but a small number have broken through. What did they do differently?
Green categories that made it to the mainstream
A handful of categories illustrate what it takes to move from niche to mass market. Oat milk, electric vehicles (EVs), heat pumps, and refurbished electronics have all achieved significant adoption, albeit with regional variation and policy support.
Consider oat milk. Worldwide sales of oat milk have increased rapidly in recent years, and the market is predicted to grow at more than 16 percent annually between 2026 and 2033.1 By contrast, global production of dairy milk is expected to increase by a more modest 1.8 percent per year over the next decade.2
EVs offer another case. While EV uptake has been uneven across geographies, China has reached a tipping point: Approximately 50 percent of new vehicles sold in 2024 were electric.3 Crucially, the popularity of EVs in China isn’t attributed primarily to their sustainability credentials but to the superior passenger comfort, in-car entertainment, autonomous-driving capabilities, and other benefits they offer.4
In Nordic countries, air-to-water and geothermal heat pumps—a key decarbonization technology—have reached high penetration in the residential heating market, in part thanks to subsidies.5 A similar trend is seen in Germany, where roughly 1.6 million heat pumps have been installed over the past five years.6
As for circular electronics, secondhand smartphones now represent a key segment of the market, with sales predicted to exceed 430 million units in 2027.7 In fact, growth in used-device sales is expected to outpace that of new smartphones for the foreseeable future.8 Meanwhile, the refurbished laptop and computer market is predicted to grow at 9.7 percent annually between 2026 and 2031, reaching more than $16 billion in value.9
Three lessons on scaling green products
These categories differ significantly in product type and geography. But when examining what they have in common, I see three lessons that could be applicable to other product categories seeking to scale.
A clear pathway to cost competitiveness
Sustainable products don’t have to start at cost parity, but they need a visible and believable pathway toward it. This pathway is typically enabled by technological innovation, supply chain maturation, and business model evolution.
Battery cost reductions have been central to the viability of EVs. Scaling production capacity and improving supply chain efficiency have helped narrow the price gap between oat milk and dairy. In heat pumps, innovations in installation models and distribution are making it easier to build scale in local markets. In each case, early adopters tolerate a premium—but long-term growth depends on systematically removing it.
A value proposition that delivers more than sustainability
Perhaps the most decisive factor in scaling sustainable products is the presence of additional, nonsustainability benefits that stand on their own. Sustainability becomes one attribute among several, not the defining feature. Oat milk, EVs, heat pumps, and circular phones can all claim genuine environmental credentials, but each has a more complex value proposition, with multiple attributes combining to create consumer appeal.
For instance, oat milk appeals to people concerned about animal welfare or who avoid dairy for health or nutritional reasons. Oat milk’s proposition is therefore not just planet friendly but also people friendly and animal friendly. EVs offer not only low emissions but also an enhanced driving experience. Heat pumps offer comfortable indoor environments, along with lower operating costs and the potential for greater energy autonomy.
Significant sustainability benefits that are easy to understand
Successful products deliver sustainability improvements that are both meaningful and easy to understand. This matters for both differentiation and credibility, particularly when a price premium is involved.
Not all sustainability attributes are equally clear or compelling to consumers. When the sustainability benefit is hard to see or interpret, it tends to have limited influence on buying decisions. (Differences in how consumers define sustainable packaging illustrate the point: McKinsey research shows that paper-based packaging, for example, is widely perceived as sustainable in the United Kingdom, but less so in France.10) By contrast, shifts that directly affect the product—say, lower energy use in appliances or reduced fuel costs in EVs—are easier for consumers to recognize and value.
For business leaders, the question shouldn’t be “How can we sell sustainability?” but “How can we make a cost-competitive product that wins on its own merits—and is sustainable?” The categories that break through don’t ask consumers to make trade-offs between sustainability and performance. They offer products that are simply better.
For more of my perspectives on consumers and sustainability, watch my TED talk.
- Oat milk market (2026 – 2033), Grand View Research, April 2026.
- OECD‑FAO agricultural outlook 2025‑2034, OECD, July 15, 2025.
- “New twists in the electric-vehicle transition: A consumer perspective,” McKinsey, April 22, 2025.
- Daniel Birke, Mingyu Guan, and Thomas Fang, “China Auto Consumer Insights 2025: Gaining momentum,” McKinsey, September 30, 2025.
- Rebecca Ann Hughes, “Heat pumps are booming in Norway, Sweden and Estonia despite cold weather and old buildings,” Euronews, July 12, 2024.
- Petra Hannen, “Germany hits 356,000 heat pump installations in 2023,” PV Magazine, January 25, 2024.
- “Worldwide market for used smartphones is forecast to surpass 430 million units with a market value of $109.7 billion in 2027, according to IDC,” Business Wire, January 22, 2024.
- “The smartphone shifts: Why second-hand devices are outpacing new ones,” IDC, August 27, 2025.
- Refurbished computers and laptops market size & share analysis – growth trends and forecast (2026 - 2031), Modor Intelligence, January 16, 2026.
- “Sustainability in packaging: What do European consumers value in 2025?,” McKinsey, July 25, 2025.