A new study by product intelligence platform Vypr has highlighted four strategies that retailers and brands should consider adopting 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 29% of UK consumers (29%), rising to 38% for Gen Z women aged 18-24. 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, and women wanted meal kits with the exact amount of ingredients included for them to cut down on food waste (33% aged 18-24).
Despite several retailers backing away from the idea in recent months, the study found that Refill stations for personal care, cleaning products, dry goods, and beverages are in high demand. Consumers, particularly Gen Z women, are keen to use such stations, provided they offer a cost-saving of 6-10% compared to packaged goods. The research 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.
Vypr’s Consumer Horizon report 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. 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, the research suggests that while shoppers express a willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, commented: “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 study 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.
NAM Implications:
- Given that this research appears to indicate Gen Z women have a preference for refill stations…
- …retailers’ experience appears to indicate otherwise.
- All of which means that retailers should perhaps persist with refill stations until real behaviour works through.
- The only problem is retailers will have to apply opportunity-cost metrics in the meantime.
- Such will be the retailer approach to ‘try it and see’ initiatives, inevitably…
