NEW YORK—Desire for sustainable products has transformed from individual beliefs to mass buying patterns, with some demographic differences among consumers, recent studies show.
IBM recently conducted a global consumer study of 19,000 consumers in 28 countries for the National Retail Federation about how purchasing decisions will evolve in the new decade. It noted a consumer demand for transparency—the need for brands and companies to demonstrate their authenticity and provide certification for their sustainable claims.
This goes along with IBM’s finding that consumers are looking for brands that align with their core values. Among the attributes they are looking for in brands are: sustainable and eco-friendly products (76 percent), “clean” products (79 percent), recyclable products (76 percent) and natural and organic products (72 percent). Other attributes include products and services that can help simplify their life, and products with health and wellness benefits. Most respondents said they are willing to pay more—up to 35 percent more— for brands that share those attributes, the study’s authors said.
These findings were comparable across all generational groups, they added. They suggested that companies can earn the sustainably minded consumer’s confidence by sourcing and supplying goods in a responsible way across the entire supply chain and documenting their efforts.
Meanwhile, the tech and digital product testing company First Insight found differences among generations when it comes to making shopping decisions based on sustainable retail practices.
According to “The State of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail,” 62 percent of Generation Z survey participants prefer to buy from sustainable brands, on par with Millennials, while 54 percent of Generation X and 44 percent of the Silent Generation said the same. However, only 39 percent of Baby Boomers agreed, pointing to what First Insight called “a vast divide” between Baby Boomers and younger generations.
Their study also found that Generation Z is the most willing to pay more for sustainable products (73 percent) compared to Millennials (68 percent), Generation X (55 percent) and Baby Boomers (42 percent). Half of the Silent Generation expressed this sentiment. The majority of Generation Z (54 percent) are willing to spend an incremental 10 percent or more on sustainable products, versus 50 percent of Millennials, 34 percent of Generation X, 23 percent of Baby Boomers and 36 percent of the Silent Generation.
Of note, the majority of respondents across generations expect retailers and brands to become more sustainable.
“While Baby Boomers seem to be the holdouts when it comes to expecting more sustainable practices within retail overall, the research shows that with every generation, sustainability is becoming further embedded in purchase decisions,” said Greg Petro, CEO of First Insight, in a statement. “With Generation Z on track to becoming the largest generation of consumers this year, retailers and brands must start supercharging sustainability practices now if they are to keep pace with expectations around sustainability for these next-generation consumers, whether it is through consignment, upcycling or even gifting around major holidays.”
First Insight’s findings are based on the results of a U.S. consumer study of a targeted sample of more than 1,000 respondents fielded in December 2019.
