Consumer Behavior
More consumers care about sustainable shopping options
January 27, 2023
Consumer interest in sustainable shopping is on the increase, with an overwhelming majority of young U.S. shoppers willing to spend more on environmentally-friendly items.
That's a prime finding of a Tata Consultancy Services survey that polled U.S. and U.K. consumers.
The urge to shop from sustainable retailers comes despite 55% of U.S. consumers cutting back on discretionary spending, according to a press release on the study.
The survey found that a large majority of consumers in the U.S. (86%) say whether an item is made sustainably or sourced responsibly is of importance to them and an average of 69% of all consumers surveyed have recently paid more for sustainable products. But, in exchange for rewards for sustainable choices, 62% would be more inclined to spend with a given retailer.
The survey also revealed all age groups are interested in using tech-enabled shopping experiences like contactless checkout (60%) and the use of QR codes to receive more information (54%), with millennials the most interested in almost all digital shopping tools.
"As consumers tighten their wallets and belts in today's economy, retailers must get smart and rely on data and insights with technologies that bring the best return on investment in the short and long term," Ashish Khurana, retail head, Americas, TCS, said in the release. "At the same time, brands have a chance to turn this tough period into an opportunity to build loyalty, trust and excitement among their shoppers. Those who will win are the ones who can creatively help their customers make sustainable choices, live up to their values and ultimately make them feel good about shopping with them."
Additional findings include:
- All age groups surveyed plan on changing their spending behavior to adapt to challenging economic conditions. However, millennials' spending (which continues to grow) behavior appears to be less impacted, as 70% are more willing to trade their personal data in exchange for discounts and perks compared to 12 months ago. This is more than other age groups, including Gen Z (65%).
- Ninety percent of both millennials and Gen Z cite sustainable purchases as a priority.
The survey, published by the TCS Thought Leadership Institute, polled 3,000 respondents in the U.S. and U.K. (1,500 in the U.S., 1,500 in the U.K.) in October of 2022.
