As eco-consciousness continues to grow, consumers are urging retailers and brands to further evolve. A new study by product intelligence platform, Vypr has highlighted four pivotal strategies that retailers and brands need to adopt to align with the values of Gen Z and Millennial shoppers: committing to reducing food waste; introducing refill stations; embracing sustainable packaging; and partnering with social purpose organisations.
The findings, published in Vypr’s Consumer Horizon Report, show that reducing food waste is the most important factor for the majority of UK consumers (29%), especially for Gen Z women aged 18-24 (38%). When asked how they would like retailers to action this, younger consumers want advice about how to reduce waste themselves. 37% of men aged 18-24 said they needed food storage advice. Women want meal kits with the exact amount of ingredients included for them to cut down on food waste (33% aged 18-24).
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10% compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15% or more, showing the importance of price in driving consumers to adopt sustainable shopping habits.
The Consumer Horizon report, based on extensive research into consumer behaviour, also reveals that sustainability is a significant concern for shoppers under the age of 35, with most having altered their shopping habits to reflect environmental values.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86% among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Commenting on the findings, Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations. For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label “100% Recycled Packaging” and found price remained the key purchase decision-making factor for most consumers.””
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers would be more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be found in full at https://vyprclients.com/consumer-horizon-september-2024/
