Building Your Business Operations & Success What Is Green Marketing? Definition & Examples of Green Marketing By Susan Ward Susan Ward Twitter Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses. learn about our editorial policies Updated on July 20, 2020 In This Article View All In This Article What Is Green Marketing? How Green Marketing Works Is Green Marketing Worth It? Criticism of Green Marketing Photo: Annie Engel / Getty Images Green marketing is the process of promoting products or services based on their environmental benefits. These products or services may be environmentally friendly in themselves or produced in an environmentally friendly way. Learn more about green marketing to see its role in business and contributions to environmental sustainability. What Is Green Marketing? Green marketing involves companies promoting their products or services in a way that showcases their eco-friendliness. Alternate name: Eco-marketing, environmental marketing When a company showcases its eco-friendliness, that may include products: Manufactured in a sustainable fashionNot containing toxic materials or ozone-depleting substancesProduced from recycled materials or able to be recycledMade from renewable materialsNot making use of excessive packagingDesigned to be repairable and not thrown away Green marketing is typically practiced by companies that are committed to sustainable development and corporate social responsibility. More organizations are making an effort to implement sustainable business practices. They recognize they can make their products more attractive to consumers, while also reducing expenses in packaging, transportation, energy and water usage, and more. Furthermore, businesses are increasingly discovering that demonstrating a high level of social responsibility can increase brand loyalty among socially conscious consumers. The key barrier to sustainable business practices, such as green procurement, is the short-term cost. Going green will typically cost more upfront, but generate great rewards in the long run. How Green Marketing Works Green marketing begins with a company actually implementing and practicing sustainable business methods. Companies risk being labeled as dishonest if their business practices don't match their green marketing messages, so they must ensure they're practicing what they're preaching. Authenticity is essential in green marketing. Companies generally have three angles of marketing their eco-friendliness: The items used to make their productsThe actual productsThe packaging the products are sold in They may choose to highlight how their products are all made from recycled material, how their products are designed to be recycled or reused, their use of biodegradable packaging, or a combination of the three. It's also common to find larger corporations that participate in various programs that aim to increase company-wide recycling, decrease waste disposal, and support community initiatives. Both grocers and restaurants are known for their green marketing. For grocers that advertise organic produce, organic food sales have more than doubled since 2010 as consumers increasingly prefer non-genetically modified foods free of pesticides. Restaurants that promote locally sourced meats, produce, and alcohol are thriving. Local sourcing is attractive to consumers as it projects an image of sustainability and willingness to invest in the community. Note The Toyota Prius is the best-selling hybrid vehicle of all time, mostly because its unique styling reflects the typical owner's passion for sustainability. Is Green Marketing Worth It? Green marketing can be a very powerful marketing strategy when it's done right. Consider the following: Forty-eight percent of U.S. consumers say they would definitely or probably change consumption habits to reduce environmental impact.Products with sustainable attributes have been steadily taking more share of store sales, from 19.7% in 2014 to 22.3% in 2017, to an anticipated 25% in 2021.Ninety percent of millennials say they are willing to pay more for products that contain sustainable or environmentally friendly ingredients. A previous Nielsen survey looked at retail purchase statistics, and according to sales data, brands that advertised sustainability on their packaging had 2% year-over-year increases in sales from 2011–2014, as compared with 1% for those that did not. Brands that promoted acting sustainability through their marketing saw a sales increase of 5%. Criticism of Green Marketing The public tends to be skeptical of green claims. Companies can seriously damage their brands and sales if a green claim is discovered to be false or contradicted by a company's other products or practices. Presenting a product or service as green when it's not is called greenwashing. For example, in 2012 a CBC Marketplace study found that Dawn Antibacterial dish soap, which featured a label showing baby seals and ducklings and claiming that "Dawn helps save wildlife," was found to contain Triclosan, which has been officially declared toxic to aquatic life. Seaworld Orlando's introduction of its "Cup that Cares" in 2013 was another dismal example of green marketing gone wrong. The cup was marketed as environmentally friendly: Each time a person refilled the cup at a vending machine in the park, an embedded chip would display how much carbon dioxide they had saved. These claims were never substantiated. Further, the cup—and the 40 accessories that could be purchased with it—was plastic, not a favorite of environmental advocates. For green marketing to be successful, it has to fit with your brand. Having a single green product when the rest of your products are not, for instance, can make customers wonder about your environmental commitment. Key Takeaways Green marketing is promoting products or services based on their eco-friendliness.Companies may choose to highlight how products are manufactured, the products themselves, or the packing used.Using green marketing while not having green practices is known as greenwashing. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Harvard Business Review. "The Comprehensive Business Case for Sustainability." Accessed July 17, 2020. PwC. "How Can Resilience Prepare Companies for Environmental and Social Change?" Page 4. Accessed July 17, 2020. Organic Trade Association. "U.S. Organic Sales Break Through $50 Billion Mark in 2018." Accessed July 20, 2020. U.S. Department of Agriculture. "Why Local Food Matters: The Rising Importance of Locally Grown Food in the U.S. Food System," Page 10. Accessed July 17, 2020. Marketing Week. "How Toyota Sold Six Times as Many Cars as Its Hybrid Rival." Accessed July 18, 2020. Nielsen. "Was 2018 the Year of the Influential Sustainable Consumer?" Accessed July 17, 2020. Nielsen. "Global Consumers Are Willing to Put Their Money Where Their Heart Is When It Comes to Goods and Services From Companies Committed to Social Responsibility." Accessed July 17, 2020. CBC. "10 Worst Household Products for Greenwashing." Accessed July 17, 2020. The Guardian. "Five Sustainable Boondoggles: Greenwashing All the Way to the Bank." Accessed July 17, 2020.