Millennial shopper from developing countries is greener

Millennial and Gen Z consumers in China, India and other emerging economies are more environmentally conscious, more likely to buy sustainable products and more wary of corporate sustainability claims than their peers in developed countries, report finds from Credit Suisse Research Institute published on Tuesday.

The survey of 10,000 young consumers in 10 countries suggests significant opportunities in the food, fashion, travel, tourism and housing industries for companies that offer products that align with their values, and risks for those that do not.

Generation Z and millennials account for 54% of the global population and 48% of consumer spending, which will increase to 68% by 2040, according to the report.

“Of particular importance in this regard is the role of the young emerging consumer, given the potential increase in purchasing power in the emerging world and the fact that, in demographic terms, developing countries lean more towards younger consumers.”, wrote the authors of the report.

The survey also revealed stronger support among Gen Z and millennials in emerging economies for government regulation of unsustainable products or their outright ban from the market.

Eugène Klerk, head of global thematic and ESG research at Credit Suisse, said in an email that the survey did not directly answer why millennial and Gen Z consumers in emerging economies have a more sustainable mindset than those in developed nations. , but said climate change could explain the difference in attitudes.

“First, emerging market consumers may have been more exposed to the impact of global warming than those in developed markets, which could explain why they are more engaged in finding solutions.” wrote. “Another reason could be that younger consumers in developed countries have a lifestyle that is less sustainable than consumers in developing economies.”

The research firm Nielsen surveyed young consumers in five emerging economies (Brazil, China, India, Mexico and South Africa) and in five developed countries (France, Germany, Switzerland, the United Kingdom and the United States).

This is an environmentally apprehensive population. The survey revealed that between 65% and 90% of respondents in the 10 countries had a “high level of anxiety” around topics related to sustainability. Three quarters of those concerned about the environment said they intend to live more sustainably by spending more on things like solar panels and electric cars and avoiding fast food and meat.

The survey showed that 80% of young consumers intend to buy sustainable products where possible, while in China and India, more than 15% of respondents said they currently only buy sustainably produced products.

One piece of good news for automakers phasing out fossil fuel vehicles is that 63% of Gen Z and millennial respondents expect to own an electric or hybrid electric car. In China, more than half of those surveyed said they already own such vehicles.

However, the majority of young consumers surveyed in developed countries said they had no plans to reduce their flights, while the majority of those surveyed in emerging economies expect to minimize the time they spend on board planes.

Giving up fast fashion, which is destructive to the environment, is a more difficult task for young consumers. While 41% of respondents said they believe the fashion industry is unsustainable, given its greenhouse gas emissions and consumption of water and plastics, only 20-40% of them intend to reduce fast fashion shopping. The exception was China, where more than half said they would buy less fast fashion.

The survey revealed that Gen Z and millennials view corporate sustainability statements with distrust: 63% said they do not believe in them. Some 60% of respondents in India, Brazil, South Africa, Mexico and the US believe that senior executive compensation should be linked to the sustainability of a company’s products.