According to a 2022 study, 66% of global consumers rank sustainability in their top five considerations when making a purchase decision. There is plenty of data making it clear that consumers are increasingly favouring sustainable goods.
Ethical consumerism isn't just a trend. It's a movement. More people are making purchasing decisions based on sustainability, social responsibility, and ethical business practices.
Consumer spending increased 9.0 percent in 2022. Average annual expenditures for all consumer units increased 9.0 percent from 2021 to 2022, similar to the 9.1 percent increase from 2020 to 2021.
There has been little change in the past year in the sustainable and ethical practices that consumers value most, though more emphasis is now being placed on reducing carbon emissions than in 2023. This year, consumers most valued sustainable or ethical practices are: Producing sustainable packaging and products.
According to Forbes, 62% of Gen Z prefer sustainable brands to shop, and 73% of Millennials will pay more for sustainable goods. As they become a more dominant force in the consumer market, businesses are adapting to meet their expectations for transparency and ethical responsibility.
Recent research has shown that Gen Z (those aged 12-27) is rewriting the rules of retail. With more purchasing power and louder voices than ever before, this generation expects more from brands – more transparency, more action on sustainability and more ethical accountability.
Wartime production had helped pull America's economy out of depression, and from the late 1940s on, young adults saw a remarkable rise in their spending power. Jobs were plentiful, wages were higher, and because of the lack of consumer goods during the war, Americans were eager to spend.
Ethical consumerism (alternatively called ethical consumption, ethical purchasing, moral purchasing, ethical sourcing, or ethical shopping and also associated with sustainable and green consumerism) is a type of consumer activism based on the concept of dollar voting.
How can we live ethically in the modern consumerist world?
There are several examples of ethical consumerism, such as choosing products with eco-friendly packaging, shopping for products in bulk, recycling old items, and even opting for sustainable investments.
Gen Z TikTokers are touting "underconsumption core," aiming to make fewer purchases and hold onto older items for longer. This push towards saving money is likely a reflection of the youth's current economic struggles, and their apparent interest in the environment is driving sustainability efforts.
India's consumer market is set to grow by 46 per cent by 2030, driven by rising incomes, a young workforce, and urbanization. Consumer spending is projected to reach USD 4.3 trillion, supported by an expanding middle class, increased discretionary spending, and the growth of dual-income households.
Key Takeaways. Growth in U.S. consumer spending is likely to weaken to 3.7% in 2025 from 5.7% in 2024. Consumption is still showing resilience as unemployment remains low and consumers buy ahead of tariff-related price increases. Spending is likely to cool more visibly among lower- and middle-income consumers.
The rise of conscious consumerism means that ethical practices are no longer just a nice-to-have—they're a competitive advantage. Businesses embracing this shift are finding that sustainable choices lead to positive benefits like driving customer loyalty and long-term brand growth.
Thus, the future of consumer behavior in online retail is being shaped by the convergence of social connection and commerce, which is expected to result in a more personalized, social, and interactive purchasing experience in the years to come.
Consumers are increasingly prioritising sustainability in their consumption practices, as almost nine-in-ten (85%) say they are experiencing the disruptive impacts of climate change in their lives. 46% say they are buying more sustainable products as a way to reduce their impact on the environment.
Consumerism is often linked to environmental issues because it causes pollution and waste. These can include urban sprawl, pollution, resource depletion, and problems with waste disposal from excess consumer goods and packaging.
The six primary factors that significantly impact consumer behavior include psychological, social, cultural, personal, economic, and technological influences. As consumer expectations continue to evolve in response to various influences, you must remain agile and responsive to these changes.
Ethical consumerism, sometimes referred to as conscious consumerism or green consumerism, alludes to the practice of eco-friendly shopping as an effort to make a positive economic, environmental, and social impact on your purchases and mitigate further harm to the planet.
Are 73% of Gen Z willing to pay more for sustainable products?
It's woven into their identity and lifestyle. A 2023 study by First Insight found that 73% of Gen Z consumers are willing to pay more for sustainable products, compared to just 50% of Baby Boomers. For them, shopping is an extension of activism—every purchase becomes a vote for the kind of world they want to live in.
This kind of authenticity creates a sense of trust and reliability, which is something that Gen Z values in our relationships, both personal and professional. We want to know that the people and brands we interact with are honest and have our best interests at heart.
Mental health is a priority for Gen Z because they've grown up in a time of significant social, economic, and global challenges. They're more aware of mental health issues and the impact they can have on overall wellbeing and productivity.
The 1989 launch of Ethical Consumer, a magazine published by the United Kingdom-based Ethical Consumer Research Association (ECRA), gave the growing movement its name. According to the ECRA, the resultant consumerist movement developed in three distinct phases.
Making the decision to start to live ethically can be as easy as beginning to recycle, switching off lights when leaving a room, buying local organic or fair trade produce, or eating less meat.
Economic rationalization focuses on consumers wanting to get the most value for their money, regardless of their ethical beliefs. Institutional dependency refers to the belief that institutions such as the government are responsibility to ethically regulate what products can be sold.
