Gen Z Spending Habits Favor Sustainability

Gen Z isn’t just the next wave of consumers– they’re already steering how retailers operate. With global spending power projected to reach $12 trillion by 2030 (NielsenIQ), this generation demands more than price and convenience. They want sustainability at the core. For retail strategists, that means rethinking how products are designed, sold, and, most importantly, what happens after purchase.

Why Gen Z Matters

Gen Z’s influence extends beyond their wallets. Their online voice shapes trends, their expectations set the tone for future shoppers, and their skepticism forces brands to prove authenticity. This group isn’t easily swayed by marketing– they’re watching your supply chain receipts. 

Traits That Define Gen Z Spending

Gen Z brings a mix of pragmatism and principle to how they shop. They’re careful with money, deeply influenced by digital culture, and still want in-person experiences.

• Value-conscious but not cheap. They still hunt deals. In fact, nearly half shop discount retailers (ICSC) – but will spend more when it aligns with their values.
• Digital-first, socially influenced. Social media guides 85% of their purchases, but nearly all still shop in physical stores.
• Financially cautious. Growing up in uncertain times, Gen Z avoids debt and prioritizes savings, making them practical in purchase decisions.

For retailers, the takeaway is clear: price matters, but so does alignment with values and an omnichannel presence that blends online convenience with offline trust.

Sustainability Is Non-Negotiable

Sustainability isn’t just a nice-to-have for Gen Z. It’s a filter they use to decide where to spend. They reward brands that back up claims with proof, and they punish those that greenwash.

• 62% prefer sustainable brands and 73% will pay more for eco-conscious products (First Insight).
• Yet there’s a gap: what they say doesn’t always match how they spend. Retailers must make sustainability easy, visible, and trustworthy.
• Transparency, eco-labels, and circular options like resale or repair close this gap and turn intent into action.

For strategists, the lesson is to make sustainability both practical and undeniable — it should be as easy as clicking “buy now.”

Strategies for Retail Leaders

Winning Gen Z means embedding sustainability in every part of the customer journey. That doesn’t mean reinventing everything overnight, but it does mean proving your efforts in tangible ways.

• Show your work. Share clear sourcing and impact data. Avoid vague “eco-friendly” claims. Gen Z watches social media and pays close attention. If you’re caught lying about your sustainability practices or trying to hide waste like many major brands, expect it to get to the news and hurt your bottom line in a big way. 
• Build circular models. Trade-in, resale, and donation options resonate with Gen Z’s desire for waste reduction. Platforms like LiquiDonate make it simple for retailers to reroute excess inventory, unsellable returns, and warehouse overflow directly to nonprofits– reducing costs, skipping landfills, and proving sustainability in action.
• Design frictionless sustainability. Green nudges, eco-badges, and low-impact shipping options help shoppers make aligned choices without extra effort.
• Blend online & offline. Use stores as experience hubs where sustainability is part of the brand story.
  
  

These shifts don’t just attract Gen Z– they future-proof your brand for the generations that follow.

Conclusion

Gen Z’s spending habits are shaping the retail future and sustainability is at the center. For retail operators, the challenge isn’t whether to act, but how fast. Make sustainable practices transparent, convenient, and authentic, and you’ll not only win Gen Z, but set the standard for every shopper who follows.

Want a faster way to prove sustainability and cut costs at the same time? LiquiDonate helps retailers turn returns and excess inventory into community value instead of landfill waste.