Growing green preferences among Generation Z, however, purchasing decisions impacted by inflation
In 2023, a significant shift towards sustainable behaviours has been observed among Generation Z in Italy, particularly in the real estate and energy efficiency sectors. This trend is driven by a growing environmental awareness and a willingness to adopt eco-friendly practices.
The study "Agos Insights 2023. The New Sustainable Consumption," conducted by Agos in collaboration with Eumetra, reveals this trend. The research shows that 86% of Gen Z individuals express an interest in improving the energy efficiency of their homes, with economic benefits and environmental concerns as motivating factors.
Key trends observed include:
- Energy efficiency in real estate: Gen Z consumers are increasingly aware of sustainable housing features such as better insulation, renewable energy integration, and energy-saving appliances. This awareness is a response to both environmental concerns and rising energy costs.
- Sustainability mindset influence: Gen Z's behaviour is shaped by digital access to information and a strong concern for climate change, leading to preferences for green buildings and energy-efficient homes. Despite often being price-sensitive, many demonstrate a readiness to pay premiums for sustainability-related attributes.
- Willingness to invest: Although Gen Z is generally price-sensitive, many demonstrate a readiness to invest in sustainability-related attributes, such as energy-efficient homes or circular economy products, provided quality and durability meet standards.
- Behavioral gap: Despite the interest, an "attitude-behaviour gap" persists, meaning not all professed sustainability concerns translate into actual market behaviour. However, awareness and willingness are important predictors of eventual sustainable consumption.
In the broader European context, statistics confirm Gen Z’s increasing preference for sustainable options in purchasing decisions, including real estate and energy-related investments. This growing demographic is reshaping real estate and energy sectors by demanding transparency, credible sustainability claims, and products aligned with circular economy principles.
The private car remains the most used means of transport in Italy, but there has been a growing interest in greener habits among car users. Walking is used by 35% of the population, while cycling is used by 19%.
Economic factors heavily influence purchasing decisions in a scenario characterized by inflationary trends that affect the purchasing power of families. Consumers often choose more affordable products regardless of their green characteristics.
Sociologist Francesco Morace comments that Generation Z is looking for real sustainability and less storytelling, more action (or "storydoing"). This generation values authentic sustainability over mere marketing or storytelling.
The study was conducted by Agos, a company 61% owned by the Crédit Agricole Group and 39% by Banco Bpm. The research does not provide specific data on the purchasing behaviours of other age groups.
[1] Agos Insights 2023. The New Sustainable Consumption. [2] Eumetra Research. [3] Francesco Morace, Sociologist. [4] European Commission, Directorate-General for Energy. [5] European Commission, Directorate-General for Environment.
- In line with the growing interest in sustainable practices, many Gen Z individuals are willing to invest in personal-finance aspects such as purchasing energy-efficient homes or circular economy products, given that quality and durability meet standards.
- The trend toward sustainable behaviors extends beyond real estate and energy efficiency, as indicated by the increasing number of Italians adopting greener habits like walking and cycling as alternatives to the private car.
- The research by Agos, Eumetra, and sociologist Francesco Morace highlights the importance of addressing not only the environmental science aspects but also the financial consequences of sustainable choices, especially for Gen Z, to encourage true sustainability rather than just marketing narratives.
