Changing Buying Habits – Why Gen Z and Gen X Consumers are Prioritizing Sustainability

In business, in order to succeed, it’s important to cater to the right demographic. In order to do so, it’s important to understand what motivates your clientele. Not only do you need to know what your customers expect from you, but it’s also important to understand why.

In modern society, consumer behavior today is driven by more than just price. It is instead driven by core values, strong personal belief, ethics, and sustainability. This is especially true amongst younger shoppers from Gen Z and Gen X.

Gen Z for example, has been found to feel extremely strongly about sustainability. So much so in fact, that they are willing to spend more on sustainable produce and businesses which adopt sustainable, eco-friendly practices. By 2030, it is estimated that in the US, Gen Z will represent close to 18% of all retail shopping. Because of this, from a business perspective, making your business more sustainable makes perfect sense.

But why is it that Gen X and Gen Z consumers feel so strongly about sustainability? Here are a few examples.

Technology

While Gen X technically grew up before modern technology took over, technology still played a key role in their everyday lives as they grew older. Gen Z however, are the first generation to be born and raised entirely in a digital age.

As a result of this, both generations essentially grew up in an age dominated by social media, the internet, and in the case of the latter, smart phones. This means that they had a wealth of information at their disposal, which helped to shape the way that they viewed the world, and how they behaved.

As there has been so much focus placed on sustainability and tackling the world’s plastic crisis, this has clearly shaped their core values and beliefs, and has influenced their buying habits. Organizations that prioritize profit over sustainability may be viewed as selfish and greedy. If a company would rather package their products in single-use plastics instead of a sustainable material like aluminum, this can create the impression that they don’t care about the environment. If they don’t care about the planet, why would they care about their customers?

Core Values and Beliefs

Because of issues such as climate change and the many environmental dangers associated with plastic produce, both Gen Z and Gen X consumers are increasingly gravitating toward businesses that incorporate sustainable practices into their day-to-day operations.

Over the last several years, experts have found that Gen X and Gen Z consumers are not only more likely to shop with sustainable businesses, but to also pay more for sustainable produce. Gen Z for example, are believed to be as much as 1.5x more likely to pay more for sustainable produce. One of the key drivers of this is down to core values and beliefs.

For previous generations, climate change was not yet a reality. Sure, it was talked about a lot, but the effects were not yet felt, particularly as it was much harder to learn what was happening in different parts of the world. For Gen Z and X consumers though, climate change is a reality. It’s all over the news, it’s on social media, and it’s influencing our climate and our weather. Seeing the effects with their own two eyes has helped stamp home the severity of climate change and it is therefore something that younger consumers feel very strongly about.

Brand Loyalty and Empathy

Another reason why it’s so important for businesses to become more sustainable is because it can help to build brand loyalty.

Gen X and Gen Z consumers are far more likely to not only choose a sustainable company, but remain loyal to a sustainable company than one which isn’t. This is because it allows them to connect with a brand, and vice versa, and build a rapport. Instead of shopping with a faceless corporation, they would much rather shop with a brand that shares their same passions and beliefs. For them, it’s more like buying from a friend, which in turn helps build consumer loyalty.

For businesses, something as simple as switching from plastic to cardboard or aluminum packaging can help to build brand loyalty. Going sustainable shows Gen X and Gen Z buyers that you don’t just care about the planet, but you also care about your consumers. It shows you’re willing to listen to their concerns and adapt your business to become more sustainable and environmentally conscious, even if it means your profit margins are affected.