The Pandemic Changed Gen Z’s Consumption Habits – Will Brands Follow?

The pandemic brought an array of changes to our lives while disrupting and altering Gen Z’s consumption habits. The global health crisis has also significantly impacted wider consumer attitudes, promoting socially responsible behaviour across the board. Good. Must. Grow., a marketing consultancy, published a survey in May 2020 which revealed that customers felt a greater sense of responsibility to society. Unsurprisingly, climate change is an issue ranking highly with many young people urging governments to act and, in their words, “save the planet.” Brands have their own part to play, and they can no longer ignore what consumers are boldly asking for. With Gen-Z predicted to surpass the income of Millennials by 2031,  brands must adapt to meet the new consumer expectations.

A sustainable consumption transition

The 2008 financial crisis had a wide-ranging influence on customers’ consumption. Research has shown that that job uncertainty, declining savings, lower disposable income, and increased risk aversion (created by the financial crisis) directly impacted consumer spending. Consumers were less likely to excessively spend as they did previously and even found themselves alternating between luxury supermarkets to value shops.

On the other hand, covid has shifted the landscape on sustainable consumption by driving more social consciousness. Consumers are now more likely to pay greater attention to the environment, adopt pro-environmental behaviours and buy sustainable products. In an Italian study, over 60% of respondents claimed a moderate or extreme increase in the level of awareness in environmental issues, and another one highlighted similar results among Brazilian and Portuguese consumers. Consumers’ changing spending habits has also decreased the use of unsustainable supply chains. In fact, experts argue that covid could have acted as a catalyst towards global sustainable development goals, which will be felt later down the line.

Sustainability has been a widely spoken about issue for a while now, influencing government policy and business models alike. However, the pandemic invited the beginning of a total sustainable consumption transition. At a time when people were encouraged to unite and support each other while uncertainty was rife, many likewise started to question what their moral duty towards the bettering of society might be, which is now partly expressed through greater environmental awareness.

Is Gen Z the ‘most disruptive generation ever’?

Gen Z has been branded as the ‘most disruptive generation ever’, greatly committed to making choices that align with their morals, including consumption. No other generation has shown such widespread commitment to a societal issue since the Baby Boomers’ activism against the Vietnam war. With the world soon becoming their oyster, they’re understandably concerned and anxious for the planet’s wellbeing.

Around 75% of Gen Z consumers prioritise sustainability over brand name when making purchases. Approximately half of Gen Z-ers believe that sustainability signifies “sustainable manufacturing” whilst nearly half of the Millennial, Generation X, and Baby Boomer respondents thought sustainability meant “products made from recycled, sustainable and naturally-harvested fibres and materials”. Clearly, there is some disparity regarding what sustainability means to each generation, with Gen Z taking it a more holistic approach. However, reports also show that Gen Z has notably influenced the older generations on this issue – Gen X’s preference to shop sustainably has increased by a whopping 24% while those willing to pay more for sustainable products has also risen by an impressive 42% since 2019.

How can brands embrace sustainability?

Studies show that the steady increase in customers’ sustainable consumption in turn encourages brands to improve their efforts, becoming more ecologically, as well as socially, responsible. This has resulted in a greater sustainability offering such as circular business models, adapted products and the use of recycled materials. The appropriate disposal of domestic waste is also a pressing issue.

Unarguably, the most crucial element to building a sustainable brand is a genuine drive to be sustainable. More than ever, customers are drawn to authenticity and with greenwashing being too common of an occurrence, a brand immediately loses its longevity if their ‘sustainability’ efforts are proven otherwise. If brands don’t abuse ‘sustainability’ as a buzzword marketing tool and, instead, persevere in building a sustainable business with green practices implemented at all stages of the supply chain, then they’ll command the kind of brand loyalty everyone craves.

Through building a ‘sustainable brand story’ and regularly communicating and educating customers on the innovative ways the brand is mitigating environmental harm on social media, they will succeed in green marketing. In the industry, adaptability is also vital to ensure a conscious brand. There are other practical measures that brands can undertake on the path to sustainability including reducing packaging, replacing single-use plastic with greener materials, upcycling, measuring waste, and utilising environmentally friendly equipment where possible.

Though the pandemic has certainly been a turbulent time for all, it has succeeded in furthering Gen Z’s determination to rescue the planet.