Rising environmental concerns among Generation Z, yet inflation's impact on buying decisions hinders eco-friendly purchases
In 2023, economic factors significantly influence Generation Z's sustainable behaviours in Italy, particularly regarding green choices and sustainable habits in real estate and energy efficiency.
According to the "Agos Insights 2023. The New Sustainable Consumption" observatory, conducted by Agos (61% owned by the Crédit Agricole Group and 39% by Banco BPM), Gen Z is generally price-sensitive, which affects their adoption of sustainable products and behaviours, despite a strong sustainability mindset.
Key economic factors shaping Gen Z's sustainable behaviour in Italy include:
- Price consciousness: Gen Z often seeks affordable sustainable options, such as second-hand goods, rather than higher-cost new sustainable products.
- Willingness to pay for green products: While sustainability is a strong value, the readiness to pay premium prices varies; many are willing but limit spending due to economic constraints.
- Information access and transparency: Gen Z extensively researches products, preferring clear sustainability information that justifies any added cost, which influences their real estate and energy-efficiency investments.
- Regulatory and incentive context: EU regulations promote sustainable packaging and energy-efficient building standards, potentially shaping market offerings and consumer choices.
In the real estate and energy sectors, Gen Z’s adoption of sustainable habits manifests in preferences for energy-efficient homes, green building materials, and renewable energy solutions. However, their ability to adopt these habits depends on cost-related factors such as upfront investment, access to subsidies or incentives, and the long-term economic benefits of sustainable choices.
The survey also revealed that purchasing choices in the direction of green and social sustainability are more contained in 2023 compared to the previous year. However, there has been a notable improvement in sectors such as sustainable mobility (+10% from 2022), the use of renewable energy (+9% from 2022), and the circular economy, with the purchase of used clothes (+5% from 2022).
The traditional environmental focus is being surpassed by an increased attention to green and social sustainability themes among Generation Z in 2023, with an increase of 5% compared to 2022. Francesco Morace, a sociologist, commented that youth are seeking real sustainability and less storytelling, more storydoing.
Walking (35%) and cycling (19%) follow in terms of popularity as means of transport, while the private car remains the most used means of transport (63%), but there is a growth in the desire to adopt greener habits among car users (+32%).
Eighty-six percent of interviewees expressed interest in the energy efficiency of their home, with 61% citing economic advantages and 39% expressing environmental convictions.
The survey aimed to illustrate the green habits of Italians, and it is a valuable resource for understanding the current trends and challenges in sustainable consumption among the younger generation.
- Gen Z's interest in energy-efficient homes extends to the finance sector, as they seek to understand the economic advantages that come with such choices, such as reduced utility bills and long-term savings.
- In corroboration with their sustainability-focused lifestyle, Gen Z is keen on incorporating green financing options in their home-and-garden projects, which emphasize sustainable living and resource conservation.
