New data shows almost six in 10 (59%) of Gen Z consumers admit their generation talks more about sustainability than they practice, according to RSM UK and Retail Economics.
A survey of 1,500 Gen Z consumers by RSM UK in conjunction with Retail Economics found almost a third (29%) are committed to sustainability, while 43% have an aspirational intention where they care about sustainability but will compromise when considering cost or convenience. This intention-gap becomes even wider when you look at age as committed shoppers jump to 39% between 24-28 year olds and fall to 20% for 18-21 year olds. There is also indifference with 28% placing low priority on sustainability, guided more by price and ease of access.
In addition, the survey revealed that 40% of Gen Z confess to often buying items they will only wear or use once.
Cathy Faria, ESG associate director at RSM UK, said: “There are clear contradictions between intent and the buying habits of Gen Z when it comes to sustainability, with many not practicing what they preach. Ultimately, they face a trade-off between values, budgets and desires for instant consumption.
“Gen Z grew up in the era of “ultra-fast fashion” with the likes of Shein and Temu. Such retailers operate on hyper-speed production, daily new designs and minimal production costs, meaning products are often available at extremely low prices. In a world where budgets are being increasingly squeezed every day, the combination of low-cost products and convenience can be hard to resist, making it difficult for other retailers to compete.
“That said, there’s a real opportunity for retailers to tackle sustainable fashion, as it’s clearly of high importance, particularly for more financially secure Gen Z consumers. This involves sourcing natural fabrics and recycled materials, optimising supply chain efficiency, as well as ensuring safe working conditions and fair pay. Interest in pre-loved shopping is also gaining momentum, with many major retailers showcasing second hand collections in store. We expect to see more retailers introducing new innovative initiatives to tap into this growing area of the market. An example is M&S’s recent launch of an online takeback scheme and clothing resale service in partnership with eBay, where items are cleaned, repaired and listed online, and those that cannot be resold are repurposed or recycled.”
Jacqui Baker, head of retail at RSM UK, said: “Sustainability decisions among Gen Z vary within the different areas of retail. Affordability and quality will dominate decisions most of the time, but sustainability rises sharply in importance in the health and beauty sector. Natural and ethical credentials are tied directly to safety, well-being and self-care, meaning here, sustainability is not just a bolt-on, it’s integral to the product.
“Not only are we seeing the “lipstick effect” consistently drive strong sales in health and beauty, as consumers cut back on other retail categories, but they’re also willing to pay a premium if it has sustainable credentials attached to it.”