Rising environmental awareness among Generation Z members, yet financial pressures burden their sustainable buying decisions
In the ever-evolving landscape of consumer behaviour, a notable shift has emerged among Generation Z in 2023. A recent study by Agos Insights, a collaboration between Agos and Eumetra, reveals an increase in interest towards green and social sustainability themes, with a growth of 5% compared to the previous year.
However, the adoption of sustainable practices among Gen Z is influenced heavily by economic factors. According to the study, around 64% of Gen Z consumers are willing to pay more for sustainable products, though this willingness has decreased in some regions. Price remains the top consideration for 51% when purchasing necessities, emphasising economic constraints or practical behaviour overriding purely idealistic sustainability motives.
Gen Z demonstrates a preference for affordable sustainable choices, with 42% having bought pre-loved clothes in 2023. This practical blend of style, sustainability, and price is a significant trend in Gen Z's purchasing habits.
Interestingly, Gen Z tends to delegate the primary responsibility for sustainable action to large brands, companies, and governments rather than individual consumers. American Gen Zers are among the least likely to believe consumers should act sustainably and instead expect institutional leadership in sustainability efforts.
Despite this, Gen Z is described as aware and informed, integrating sustainability into daily choices and consumption patterns. Sociologist Francesco Morace comments that Generation Z is looking for real sustainability and less storytelling, more storydoing.
The adoption of sustainable behaviours has improved in 2023, particularly in the areas of sustainable mobility (+10% from 2022), the use of renewable energy sources (+9% from 2022), and the circular economy, with the purchase of used clothes (+5% from 2022).
Walking (35%) and cycling (19%) are the second and third most used means of transport, respectively, suggesting a growing interest in sustainable mobility. Despite this, the private car remains the most used means of transport (63%), but there is a growth in the desire to adopt greener habits among car users, from 63% to 32%.
Economic uncertainty and geopolitical instability have led to a general decrease in interest in green and social sustainability themes. However, the traditional environmental focus is being surpassed by an increased attention to green and social sustainability themes among Generation Z in 2023.
In conclusion, economic factors like price sensitivity and value-for-money heavily influence Gen Z’s adoption of sustainable purchasing and habits in 2023. They are willing to support sustainability but prefer accessible, practical solutions such as secondhand shopping and expect companies and governments to lead substantial efforts. This generation balances strong environmental awareness with financial realism and practical consumer behaviour.
References:
[1] Agos Insights 2023. The New Sustainable Consumption [2] Morace, F. (2023). Generation Z: A New Era of Sustainability. [3] European Commission (2023). Consumer Trends Report 2023. [4] Statista (2023). Consumer Behaviour in the EU5 Markets. [5] Nielsen (2023). Global Sustainability Report 2023.
- The study by Agos Insights shows that around 64% of Gen Z consumers are willing to pay more for sustainable products, although this willingness has decreased in some regions, demonstrating the influence of economic factors on their adoption of sustainable practices.
- In the realm of personal finance, 42% of Gen Z has opted for affordable sustainable choices, such as buying pre-loved clothes, reflecting their preference for blending style, sustainability, and cost-effectiveness in their purchasing habits.
- While Gen Z tends to delegate the primary responsibility for sustainable action to large brands, companies, and governments, they are described as aware and informed, integrating sustainability into their daily choices and consumption patterns.
- In the domain of home and garden, the adoption of green practices has improved in 2023, particularly in the area of the circular economy, with the purchase of used items (+5% from 2022), reflecting Gen Z's increased attention to sustainable living.
- In the face of economic uncertainty and geopolitical instability, the traditional environmental focus is being surpassed by an increased interest in green and social sustainability themes among Generation Z in 2023, showing their commitment to balance strong environmental awareness with financial realism and practical consumer behavior.
