THE STATE OF CONSUMER SPENDING:
Gen Z Shoppers Demand
Sustainable Retail
JANUARY 2020
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3
In December 2019, First Insight surveyed consumers in the U.S. on
how sustainable practices are impacting shopping habits and purchase
decisions. The results point to the growing expectation for sustainable
models, with Generation Z making more shopping decisions based on
sustainable retail practices than even Millennials and Generation X. Baby
Boomers overall were the least influenced by sustainability factors.
The study found that:
1. The vast majority of Generation Z shoppers prefer to buy sustainable brands, and they
are most willing to spend 10 percent or more on sustainable products.
2. Generation Z and Millennials are the most likely to make purchase decisions based on
values and principles (personal, social, and environmental).
3. Recommerce is growing in popularity as the majority of every generation shops
secondary or used markets.
4. Every generation is buying from the secondary market more in-store versus online.
5. Younger generations including Generation Z and Millennials are most likely to purchase
upcycled products.
6. Resale and consignment models are most popular with Generation Z, Millennials and
Generation X.
7. Clothing swaps and peer-to-peer marketplaces are the least popular sustainable retail
models for every generation.
8. Every generation ranks quality over environmental concern when asked why they shop
sustainable brands.
9. Giving and receiving sustainable gifts ranked most important for Generation Z, and they
also are most likely to return and exchange a gift that is not sustainable.
10. The majority of respondents across every generation expect retailers and brands to
become more sustainable.
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. The study was completed through
proprietary sample sources among panels who participate in online surveys. Birth year ranges
for each generation are as follows:
•
•
•
•
•
Silent Generation (1928-1945)
Baby Boomers (1946-1964)
Generation X (1965-1979)
Millennials (1980-1994)
Generation Z (1995-2012)
First Insight is the world’s leading digital product testing and decision-making platform that
empowers retailers and brands to incorporate the Voice of the Customer into the design,
pricing, planning, and marketing of new products. Through the use of online consumer
engagement, the First Insight solution gathers real-time consumer data and applies predictive
analytic models powered by machine learning and AI to create actionable insights, which drive
measurable value. For more information, visit: www.firstinsight.com
THE STATE OF CONSUMER SPENDING : Gen Z Shoppers Demand Sustainable Retail
GENERATION Z SHOPPERS PREFER SUSTAINABLE BRANDS AND
WILL SPEND THE MOST ON SUSTAINABLE PRODUCTS
Sixty-two 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
say the same. However, only 39 percent of Baby Boomers agree, pointing to a vast divide
between Baby Boomers and younger generations.
PREFER TO BUY FROM SUSTAINABLE BRANDS
70%
60%
50%
62%
62%
Millennials
Generation Z
54%
40%
44%
39%
30%
20%
10%
0%
Silent Gener ation
Baby Boomers
Generation X
Generation Z is also 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 additional 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.
HOW MUCH MORE ARE YOU
WILLING TO SPEND FOR
SUSTAINABLE PRODUCTS?
ARE YOU WILLING TO PAY MORE
FOR SUSTAINABLE PRODUCTS?
27%
Generation Z
54%
Generation Z
73%
19%
32%
Millennials
68%
50%
Millennials
18%
45%
Generation X
55%
34%
Generation X
21%
58%
Baby Boomers
42%
Silent Gener ation
50%
0%
20%
40%
No
Yes
23%
Baby Boomers
48%
60%
80%
19%
36%
Silent Gener ation
14%
0%
10%
20%
MORE THAN 10%
30%
40%
LESS THAN 10%
50%
60%
5
GENERATION Z AND MILLENNIALS MOST LIKELY TO MAKE
PURCHASES BASED ON VALUES
It’s not just about finding the lowest price anymore, as younger generations including
Generation Z (72 percent) and Millennials (70 percent) are the most likely to make purchase
decisions based on values and principles that are personal, social, and environmental. A lower
63 percent of Generation X, 53 percent of Baby Boomers and 58 percent of Silent Generations
say the same.
PURCHASE DECISIONS BASED ON VALUE AND
PRINCIPLES (PERSONAL, SOCIAL, AND
ENVIRONMENTAL)
80%
70%
60%
50%
58%
40%
63%
70%
72%
Millennials
Generation Z
53%
30%
20%
10%
0%
Silent Gener ation
Baby Boomers
Generation X
RECOMMERCE MODELS ARE GROWING IN POPULARITY WITH
THE MA JORITY OF EVERY GENERATION SHOPPING SECONDARY
MARKETS
The majority of Generation Z (59 percent), Generation X (63 percent), Millennials (64 percent),
the Silent Generation (62 percent), and even Baby Boomers (52 percent) state they shop the
secondary markets, which include upcycled products, resale/consignment, clothing swaps and
peer-to-peer marketplaces.
SHOP FROM THE SECONDARY OR USED MARKET
70%
60%
50%
62%
63%
64%
Generation X
Millennials
59%
52%
40%
30%
20%
10%
0%
Silent Generation
Baby Boomers
Generation Z
EVERY GENERATION IS PRIMARILY BUYING FROM THE
SECONDARY OR USED MARKET MORE IN-STORE VERSUS
ONLINE
When looking to purchase used items, the majority of shopping is still being done in-store
versus online across every generation, with Baby Boomers (36 percent) shopping for used items
in-store the most. While Millennials (23 percent) and Generation Z (26 percent) are shopping
the secondary market in-store the least, they are still seen more there than online
THE STATE OF CONSUMER SPENDING : Gen Z Shoppers Demand Sustainable Retail
(21 percent and 19 percent, respectively). Worth noting, Millennials (20 percent) and Generation
X (17 percent) showed the highest number of respondents saying they do online and in-store
shopping for secondary items equally.
ARE YOU BUYING FROM THE SECONDARY OR USED MARKET
MORE IN-STORE OR ONLINE?
40%
35%
30%
25%
36%
32%
31%
20%
15%
23%
18%
19%
16%
10%
5%
26%
21%
8%
0%
Silent Generation
Baby Boomers
Generation X
In-store
Millennials
Generation Z
Online
UPCYCLED PRODUCTS THE MOST POPULAR RECOMMERCE
MODEL WITH EVERY GENERATION; GEN Z AND MILLENNIALS
BUYING THEM THE MOST
The majority of younger generations including Generation Z (59 percent) and Millennials (57
percent) would purchase upcycled products made of discarded objects or materials to create
a product of higher quality or perceived value than the original, whereas fewer members of
Generation X (47 percent) and Baby Boomers (38 percent) say the same. Interestingly, the Silent
Generation embraces upcycling more than Baby Boomers, with 52 percent saying they would
buy upcycled products.
PURCHASE UPCYCLED PRODUCTS
70%
60%
50%
40%
52%
57%
59%
Millennials
Generation Z
47%
38%
30%
20%
10%
0%
Silent Generation
Baby Boomers
Generation X
RESALE /CONSIGNMENT MODELS MORE POPULAR WITH
GENERATION X, MILLENNIALS AND GENERATION Z
Resale and Consignment models like The RealReal, ThredUp, Poshmark, and Tradesy are
reported as the second-most popular recommerce models with Generation Z (46 percent), and
Millennial (48 percent), and Generation X (46 percent) reporting they use these services. Baby
Boomers (39 percent) and the Silent Generation (22 percent) are using them less, but they are
still more popular than other recommerce models.
7
While fairly popular with Millennials (24) and Generation Z (29), clothing swaps like Storr
are less popular than other recommerce models overall. Further, less than 20 percent of all
generations reported using peer-to-peer marketplaces and rentals like Rent the Runway.
WHICH SUSTAINABLE RETAIL MODELS DO YOU USE?
50%
45%
46%
40%
35%
48% 46%
39%
30%
10%
27%
24%
20%
15%
30%
29%
25%
16%
22%
20% 19%
4%
5%
5%
13% 14%
16%
11%
8%
12%
6%
Peer-to-peer marketplace
Silent Generation
14%
5%
0%
Clothing Swaps
21%
Rentals
Baby Boomers
Resale/Consignment
Generation X
Millennials
10%
Subscription boxes
Generation Z
ALL GENERATIONS RANK QUALITY OVER ENVIRONMENTAL
CONCERNS AS REASONS THEY SHOP SUSTAINABLE BRANDS
When asked why they shop sustainable brands, respondents rank quality higher than
environmental concerns across every generation. Seventy-eight percent of Generation Z, 85
percent of Millennials, 81 percent of Generation X, 83 percent of Baby Boomers and 70 percent
of the Silent Generation rate it as important. Environmental concerns rank much lower, with
only 70 percent of Generation Z, 71 percent of Millennials, 70 percent of Generation X, 72
percent of Baby Boomers and 66 percent of the Silent Generation respondents citing them as
important.
HOW IMPORTANT ARE THESE REASONS TO SHOP SUSTAINABLE BRANDS?
90%
80%
83%
70%
60%
50%
65%
68% 69%
66%
72% 70% 71% 70%
81%
85%
70%
78%
83% 83% 83%
74%
73%
74%
78% 80% 76%
66%
66% 66% 66%
59%
54% 54%
40%
30%
20%
10%
0%
Brand Authenticity
71%
Environmental Concern
Silent Generation
Quality
Baby Boomers
Value
Generation X
Millennials
Craftsmanship
Generation Z
Ethics
THE STATE OF CONSUMER SPENDING : Gen Z Shoppers Demand Sustainable Retail
GIVING AND RECEIVING OF SUSTAINABLE GIFTS RANKS MOST
IMPORTANT FOR GENERATION Z
The vast majority of Generation Z believe giving and receiving sustainable gifts to be somewhat
or very important (64 percent and 65 percent respectively), with the majority of Millennials
(62 percent and 55 percent) feeling the same. By comparison, older generations, including
Generation X (51 percent and 46 percent), Baby Boomers (40 percent and 36 percent) and
the Silent Generation (44 percent for both giving and receiving) report fewer than half of
respondents feeling the same way.
HOW IMPORTANT IS IT TO GIVE/RECEIVE SUSTAINABLE
GIFTS?
70%
60%
62%
50%
40%
30%
44% 44%
51%
40%
64% 65%
55%
46%
36%
20%
10%
0%
Silent Generation
Baby Boomers
Generation X
Give sustainable gi ft
Millennials
Generation Z
Receive sust ainabl e gift
Of note, Generation Z is the most likely to return/exchange a gift that is not sustainable (56
percent) versus Millennials (44), Generation X (30), and Baby Boomers (19). Thirty-four percent
of the Silent Generation respondents report the same.
LIKELINESS TO RETURN/EXCHANGE A GIFT THAT IS NOT
SUSTAINABLE
60%
56%
50%
40%
30%
44%
34%
30%
20%
19%
10%
0%
Silent Generation
Baby Boomers
Generation X
Millennials
Generation Z
9
RE-GIFTING UNSUSTAINABLE GIFTS IS POSSIBLE WITH EVERY
GENERATION
Fifty-four percent of Generation Z, 57 percent of Millennials, 52 percent of Generation X, 50
percent of Baby Boomers and 52 percent of Silent Generation respondents state they would
consider re-gifting an unsustainable gift.
LIKELINESS TO CONSIDER RE-GIFTING A GIFT THAT IS
NOT SUSTAINABLE
58%
56%
57%
54%
54%
52%
52%
50%
52%
50%
48%
46%
Silent Generation
Baby Boomers
Generation X
Millennials
Generation Z
SUSTAINABLE PACKAGING IS IMPORTANT ACROSS
GENERATIONS
The majority of respondents across generations consider sustainable packaging as important,
with 68 percent of Generation Z, 66 percent of Millennials, 61 percent of Generation X, and
55 percent of Baby Boomers and 64 percent of Silent Generation respondents ranking it as
important, with a similar number preferring it across generations.
IMPORTANCE/PREFERENCE FOR SUSTAINABLE PACKAGING AND ECOFRIENDLY/ENVIRONMENTALLY-CONSCIOUS PACKAGING
80%
70%
60%
64%
50%
62%
55%
57%
61%
62%
68%
66%
65%
56%
40%
30%
20%
10%
0%
Silent Generation
Baby Boomers
Sustainable Packaging
Generation X
Millennials
Generation Z
Eco-Friendly/Environmentally-Conscious Packaging
Worth noting, a majority of Generation Z (53 percent) respondents feel that Amazon includes
excess packaging, compared to other generations.
DO AMAZON SHIPMENTS INCLUDE EXCESS PACKAGING?
70%
60%
64%
50%
40%
46%
57%
52%
30%
36%
54%
45%
42%
53%
47%
20%
10%
0%
Silent Generation
Baby Boomers
Generation X
Yes
No
Millennials
Generation Z
THE STATE OF CONSUMER SPENDING : Gen Z Shoppers Demand Sustainable Retail
EVERY GENERATION EXPECTS BRANDS TO BECOME MORE
SUSTAINABLE
Respondents across generations expect retailers and brands to become more sustainable,
according to 73 percent of Generation Z, 78 percent of Millennials, 84 percent of Generation X,
73 percent of Baby Boomers and 68 percent of the Silent Generation.
DO YOU EXPECT RETAILERS AND BRANDS TO BECOME MORE
SUSTAINABLE?
100%
80%
60%
84%
73%
68%
78%
73%
40%
32%
20%
27%
15%
21%
Generation X
Millennials
0%
Silent Generation
Baby Boomers
Yes
27%
Generation Z
No
CONCLUSION
First Insight surveyed consumers in the U.S. on how sustainable practices are impacting
shopping habits and purchase decisions. The new study reveals the growing expectation for
sustainable models among younger Generations, particularly Generation Z, which is willing
to buy more and spend more on sustainable products. With Generation Z on track to become
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
and packaging.
CONTACTS
FIRST INSIGHT
Gretchen Jezerc
SVP of Marketing
gretchen.jezerc@firstinsight.com
ABOUT FIRST INSIGHT
MEDIA
Stacy Berns sberns@bcg-pr.com • Michael McMullan mmcmullan@bcg-pr.com
Berns Communications Group | (212) 994-4660
First Insight is the world’s leading digital product testing and decision-making platform that empowers
retailers and brands to incorporate the Voice of the Customer into the design, pricing, planning, and
marketing of new products. For more information, visit: www.firstinsight.com