New Report Shows Sustainability Continues to Drive Consumer Choices Despite Rising Costs

Close to 50 per cent of Australian shoppers now actively consider sustainability when purchasing, a new report from Monash Business School’s Australian Consumer and Retail Studies Unit (ACRS) reveals.

Led by Dr Eloise Zoppos, the findings of the latest report released today found that 96 per cent of Australian consumers engage in sustainable practices, and 42 per cent are willing to pay more for sustainable choices.

Among the report’s key findings:

• 30 per cent of shoppers reported they frequently or very frequently look for sustainable products when making a retail purchase
• Only 12 per cent of Australian shoppers report that they never look for sustainable products 
• The two most common ways shoppers decide if a product is sustainable or not is whether the packaging is recyclable (62 per cent) and whether the product can be recycled (59 per cent)
• 79 per cent of Australians reported that they bring their own shopping bags to stores, and almost all of these shoppers do so on a regular basis
• 40 per cent reported that they are reducing the amount of new products they buy 

In an effort to better understand the attitudes and behaviours of Australians when it comes to sustainability, the ARCS research unit surveyed 1,002 shoppers across Australia in June 2024 and asked them several key questions on sustainability as part of a larger survey on retail consumer attitudes and behaviours.

“When deciding if a product is sustainable, shoppers look for cues to make quick decisions and seem to focus more on the packaging or the product itself, rather than the labelling,” Dr Zoppos said.

“The two most common ways shoppers look for sustainable products and personally decide if a product is sustainable or not is if the packaging is recyclable (62 per cent) and whether the product can be recycled (59 per cent).”

The report also found younger consumers are significantly more willing to pay more for ethically produced products, as well as products made from recycled materials and packaged in recyclable materials.

However, Dr Zoppos said all ages engage in a range of sustainable practices, but they differ substantially in the type of practices in which they engage.

“Younger consumers, aged 18-34 years, tend to take public transport, buy second-hand products, and recommend eco-friendly products to friends, family and peers more than other age groups; while older Australian shoppers, aged 55 and over, engage in these practices significantly less than other age groups,” Dr Zoppos said.

“On the other hand, older Australian shoppers, aged 55 and over bring their own shopping bags to stores, recycle product waste, and compost food waste significantly more than other age groups; while their younger counterparts, aged 18 to 34, engage in these practices considerably less than other age groups.

“While sustainability perceptions and practices may differ amongst shoppers, the positive shifts in the general attitudes and behaviours of shoppers demonstrate that sustainability is no longer a trend but a consumer movement – and retailers that are not just responding to this movement, but that are genuinely embedding sustainability into their business strategy, will resonate with consumers despite the current climate.”