The State of Consumer Spending: Gen Z Influencing All Generations to Make Sustainability-First Purchase Decisions
–New survey confirms sustainability more important than brand for all generations, from Gen Z to Boomers–
As sustainability and climate change dominate the headlines globally, new consumer research conducted by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania shows the power that Gen Z consumers have over older generations to influence purchasing decisions around sustainability. Fully three-quarters of Gen Z consumers said that sustainability was more important to them than the brand name when making purchase decisions. As a result of Gen Z’s influence over their Gen X parents on this issue, Gen X consumers’ preference to shop sustainable brands increased by 24 percent and their willingness to pay more for sustainable products increased by 42 percent since 2019.
“products made from recycled, sustainable and natural harvested fibers and materials.”
Gen Z, the demographic cohort born after 1997, has historically been the most vocal about the health of the planet. The survey, conducted by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania, found that Gen Z leads the way in sustainability. In fact, consumers across all generations—from Baby Boomers to Gen Z—are now willing to spend more for sustainable products. Just two years ago, only 58 percent of consumers across all generations were willing to spend more for sustainable options. Today, nearly 90 percent of Gen X consumers said that they would be willing to spend 10 percent extra or more for sustainable products, compared to just over 34 percent two years ago.
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Greg Petro, CEO of First Insight, said, “Our research points to a seismic shift in sentiment around sustainability purchasing decisions, with significant increases in just two years. When the previous study was fielded in 2019, older generations were not as sustainability-conscious as they are today. The global pandemic caused many to rethink their consumption and its impact on the health of the planet, yet Gen Z have been consistent in remaining true to their sustainability values while also educating and influencing the generations that came before them.”
